Redundancy and the Law By: Caroline Acton On: 15th December 2015 @ 13:00

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Redundancy 15th December 2015

Caroline Acton

Disclaimer These materials and the information contained within them are designed solely for the use of participants on our courses. These materials shall not be copied or reproduced in any format whatsoever without the prior consent of Consilia Legal LLP. The content of these materials and any commentary on the law contained within the materials is provided free of charge for information purposes only. Every reasonable effort is made to make the information and commentary accurate and up to date, but no responsibility for its accuracy and correctness, or for any consequences of relying on it, is assumed by the author, the publisher or Consilia Legal LLP. The information and commentary does not, and is not intended to, amount to legal advice to any person on a specific case or matter.

Redundancy

• Definition of Redundancy

• Fair dismissal

• Redundancy Process

• Redundancy Payments

• Claims

• Points to Remember

Redundancy Definition

• Section 139(1) ERA 1996:

- Business closure

- Workplace Closure

- Reduction of Workforce

Fair Dismissal

• 2 year qualifying service

• Fair reason for dismissal – s.98 ERA 1996

• Follow a fair and reasonable process – s.98(4) ERA 1996

Fair dismissal continued…..

• Redundancy must be the real reason

• The employer must act reasonably in treating redundancy as the reason for dismissal – procedural fairness

Number of Redundancies?

• Establish how many redundancies are being proposed:

• If 20 or more redundancies are being proposed in a 90-day period then collective consultation obligations arise

• If fewer than 20 redundancies are being proposed then it will be necessary to follow a fair procedure in relation to each employee

Collective Consultation

• TULRCA

• Inform and consult with appropriate employee representatives

• 100 or more redundancies proposed – 45 days consultation

• For more than 20 but less than 100 redundancies – 30 days consultation

• Notify the Secretary of State

• Protective Award

Process

• Consider appropriate pool

• Establish objective selection criteria

- performance and ability

- length of service

- attendance records

- disciplinary records

- LIFO

• Voluntary redundancies

• Alternative vacancies

Process Continued…

• Meet with all employees who might be redundant

• Discuss the next stages

• Minute the meeting

• Confirm content of the meeting in writing

Process Continued

• Carry out scoring exercise

• Two line managers to conduct

• Write to employees who have been provisionally selected

• Invite to a further consultation meeting

• Right to be accompanied

• Hold meeting

• Listen to employee

• Minute the meeting

Process Continued

• Follow up the meeting

• Hold a second consultation meeting

• Right to be accompanied

• Confirm decision reached

• Minute meeting

• Confirm decision in writing

• Right of appeal

Redundancy Payments

• Statutory redundancy payment:

- 2 years’ or more service

- based on employee’s age, length of service and weekly pay

(currently capped at £475)

• Enhanced redundancy packages?

• Notice and accrued but untaken holiday

pay

Other Considerations

• Time off to seek alternative employment

• Trial Periods

• Settlement agreements?

Claims?

• 3 month time limit generally • ACAS Early Conciliation now and tribunal fees • Unfair dismissal – compensatory award is capped at either 12 months pay or £78,335 (whichever is lower) • Polkey

Tips

• 2 year rule • Is it a genuine redundancy scenario? • Keep employees informed • Consult • listen • Include absent employees in the process • Ask for volunteers • Paper trails • Be fair and consistent

Questions

Telephone: 0113 3571317

Website: www.Consilialegal.co.uk

email: caroline@consilialegal.co.uk

Twitter: @consilialegal

@consiliaemplaw

Instagram: Consilia_Legal

Thank You

Discussion and Q&A on Redundancy & the Law By: Marie Walsh On: 27th January 2016 @ 13:00

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