We answer more of your questions on redundancies here. From the cost of redundancy, selection and process these all need serious considerations leading to legal implications. As always, do get in touch with the team if you have any concerns regarding restructuring on 0844 8797286.
What happens if I can’t afford to pay the redundancy?
This is a very real problem for some businesses who have realised they have no choice but to make staff cuts but the cost of the redundancy payments themselves is just a stretch too far.
The first option may be to make the employees aware through the redundancy process that you may need to propose to make the redundancy payments in instalments and see if you can reach an agreement with the individuals to facilitate this – of course document this in writing and ensure you make the payments by the dates agreed.
If your Company may be facing insolvency and cannot make redundancy payments then your employees can apply to the Redundancy Payment Service https://www.gov.uk/claim-redundancy
If your Company is continuing to trade then you may apply to the Redundancy Payment Service yourself, however any payments covered will have to be repaid. You can find further information here https://www.gov.uk/government/publications/financial-assistance-for-employers-unable-to-pay-statutory-redundancy-payments/financial-assistance-for-employers-unable-to-pay-statutory-redundancy-payments
Can I pick who I want to be made redundant without upsetting others?
Although the pandemic may be unprecedented, redundancy procedures are not and so it is essential that you get expert advice so you understand the process that should be followed.
When making redundancies you should be assessing what roles you need in the business rather than which people you want. You are required to consider if there may be a selection pool of people and this may consist of people that have similar functions and responsibilities – even if their jobs titles are different.
If you ignore the need to consider a selection pool then you may run the risk of your employees making a claim at a later date for unfair dismissal for example.
Redundancy is an upsetting time for all and so having a fair, clear and consistent procedure will reassure all employees that may be affected that you are doing the right thing.
How long does a redundancy process take?
Many business owners think there is a long drawn out process for making redundancies but this may not be the case.
When an employer is making less than 20 redundancies in a 90 day period then there is no need for a formal consultation period of 30 days like there is when you make 20 – 99 redundancies and so redundancies can be handled in a much shorter time frame.
Of course, you should check your Redundancy Policy to ensure there are no minimum period stated within this, assuming there are not then you are only consulting with individuals which can be done in a much shorter timeframe.
You do have the need to follow the redundancy process which is to notify any employees who may be at risk of redundancy, you would meet with them individually to discuss the situation and consider any alternatives to redundancy, you may have to apply a selection criteria or conduct interview and then make a decision before you serve notice of redundancies to those affected.
This process may be completed in a matter of days rather than weeks.
What is important is that you have sought professional advice to ensure you have followed a fair and reasonable process for all involved to avoid problems with redundancies being challenged.
Back to News