In the ever-evolving landscape of the social and charitable sector, organisations occasionally face the need to restructure their workforce. While the term “redundancy” may evoke feelings of uncertainty and concern, handling small-scale redundancies—those affecting fewer than 20 employees—can be managed sensitively and within the boundaries of the UK legal framework. In this guide, we explore the key aspects of handling small redundancies with care and compliance.
When Does Redundancy Apply?
Redundancy arises when an employer needs to reduce their workforce due to factors such as business closure, relocation, or a diminished need for specific roles. It’s crucial to identify genuine redundancy situations to ensure compliance with legal obligations and ethical considerations.
The Legal Framework of Redundancies
In the UK, the redundancy process is governed by various legislation and regulations, including the Employment Rights Act 1996 and the Trade Union and Labour Relations (Consolidation) Act 1992. Employers must adhere to statutory requirements, including:
- Providing fair selection criteria for choosing employees for redundancy.
- Offering meaningful consultation periods to discuss the proposed redundancies.
- Providing suitable notice periods and redundancy pay where applicable.
- Where applicable, allow for reasonable time off during notice periods (if an employee has 2 or more years of continuous employment).
Understanding and complying with these legal obligations is essential for conducting redundancies ethically and lawfully.
The Process of Consultation
Consultation lies at the heart of the redundancy process, enabling open dialogue between employers and employees. In small-scale redundancies, effective communication is particularly vital to ensure people understand why the redundancy is proposed and why their role is affected. Key elements of the consultation process include:
- Informing employees of the proposed redundancies and the reasons behind them. It is usually a good idea to provide a written business case, so employees can read for themselves why the redundancy is happening.
- Providing opportunities for employees to ask questions and express concerns
- Exploring alternatives to redundancy, such as redeployment or part-time working arrangements.
By engaging in meaningful consultation, employers can foster transparency, alleviate anxieties, and potentially identify alternative solutions. The length of consultation is not set in legislation, but it must be meaningful, so it has to be long enough to allow the employee to digest the information and challenge/ask questions, while allowing the organisation enough time to respond meaningfully to those challenges/suggestions.
A good period of consultation is usually between the 2 and 4 weeks, but employers should be flexible and extend the period of consultation if there are outstanding issues at the end of the original end date of the consultation period.
Support to the Employee
Redundancy can be a challenging experience for employees, often causing feelings of uncertainty and insecurity. Employers have a duty to provide support throughout the process. There are various ways employers can support their employees during the process:
- Offering counselling services or access to employee assistance programmes.
- Providing clear and empathetic communication regarding the redundancy process and its implications.
- Assisting employees in updating CVs, developing interview skills, and exploring new career opportunities.
Employers should also consider the survivors as redundancies can put all employees on edge as it is usually perceived as a sign of decline for the organisation. Within the social sector it is not uncommon for organisations to make people redundant at the end of a funding cycle, so clearly communicate, while keeping in mind the principles of data protection, why the redundancy has happened and how this will or not will affect other roles within the organisation.
By demonstrating empathy and offering practical support, employers can mitigate the impact of redundancy on affected employees.
Suitable Alternative Employment
In some cases, employers may identify suitable alternative employment opportunities within the organisation. When considering alternatives to redundancy, employers should:
- Assess the skills and capabilities of redundant employees.
- Explore internal vacancies and potential roles that match employees’ skill sets.
- Provide training or support to help employees transition into new roles.
Offering suitable alternative employment not only minimises the need for redundancies but also demonstrates a commitment to supporting employees’ continued employment and development.
TUPE?
In some cases, TUPE may apply instead of redundancy. This is usually the case where a contract with the local council has expired, and the organisation has lost the tender to another organisation.
If, as a result of the tender process, the service is transferred to another organisation, those employees who are wholly or mainly assigned to that service are likely subject to a TUPE transfer.
TUPE is a complex piece of legislation, and we will write a separate blog in May on how to handle a TUPE process and the rules around changing terms and conditions following TUPE. It will also cover the changes to the legislation coming into effect later this year for small organisation of 50 employees or less.
Conclusion
In conclusion, handling small redundancies sensitively and within the UK legal framework requires a delicate balance of compassion and compliance. By prioritising open communication, providing support to affected employees, and exploring alternatives to redundancy, employers can navigate the redundancy process with integrity and respect for all involved parties.
Upcoming Webinar
Roots HR cic will host a webinar on the process of redundancies late April or beginning of May. If you are interested in attending, keep an eye out on our website, or sign up for our newsletter.
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