Potential redundancy situations are often the result of reduced funding and/or the need to restructure in small charities. I often get asked for advice on how to manage a redundancy situation and these would be my top tips:
- Communicate as soon as you are able with your employees so that they are aware of what is happening and what you may have to do as a result. Often employees may come up with ideas which may help you avoid some/all redundancies.
- If you are making less than 20 employees redundant, which is often the case in small charities, then there is no statutory period with regard to how long the consultation with staff should be. I would recommend that you allow sufficient time for at least two meetings with individual employees.
- You should consider carefully what roles are at risk of redundancy and make sure that you have thoroughly reviewed the rationale for this.
- You should ensure that in deciding who is at risk of redundancy, any selection criteria are free from unlawful bias, e.g. if you took into account an employee’s attendance record this could include absences due to a known disability and should be disregarded for the sake of redundancy selection.
- The gov.uk website has a useful redundancy calculator to work out what an employee may be entitled to in terms of statutory redundancy pay.
- You should be aware that any employee on maternity leave or pregnant and at risk of redundancy has the right to be considered for any suitable alternative job ahead of any other employee affected.
- Redundancy is a dismissal so you have a responsibility to ensure that the dismissal is carried out fairly, e.g. allow employees to be accompanied to appropriate meetings and give them the right to appeal the decision to dismiss on grounds of redundancy.
- Appropriate notice of dismissal on grounds of redundancy should be given as outlined in the employee’s employment contract under the termination/notice clause.
If you need any guidance on how to go about an organisation restructure or how to manage a potential redundancy situation then please do contact me.