- The employer must draw up a plan to
decide who will be kept on and who will
be made redundant and why.
- The employer must inform the
workforce as soon as possible, so they
have a chance put forward alternatives
or apply for other jobs with the current
employer or with another employer.
- The employer should consider any
proposals that the employee’s or their
representatives make as an alternative
to redundancy.
- The employer should decide as soon
as possible how many employees will be
made redundant.
Consulting.
- The employer must consult the
employee’s representatives (this
includes Unions) if 20 or more
people are going to be made
redundant.
- The employer must discuss
alternatives to redundancy and the
selection criteria for redundancy.
- The employer can carry on the
redundancy procedures whilst the
consultation is going on (for
example, sending out redundancy
notices to the effected employees).
However, the employer should not
issue redundancy notices before he
has had a chance to consult
properly.
- If the employer does not consult
properly the Employment Tribunal can
make the employer pay a “Protective
Award”. This states that the
employer must keep the employees on
and must pay their wages for a
certain amount of time (whether they
actually remain working or not). The
length of this Protective Award
period is usually fairly short.
Department of Trade and Industry.
The employer must consult the
Department of Trade and Industry (D.T.I.)
30 days before dismissal if they are
going to make between 20 - 99
employees redundant. Or 90 days if
over 100 are to be dismissed. One of
the reasons for this is so that the
DTI can compile accurate employment
statistics and records.
Selection Procedure.
- If a group of employees are
selected for redundancy the
employer must show what type of
work they do and why the demand
for that work has decreased or
stopped completely.
- If the amount of work has
decreased so that only some of
the employees within a group are
selected, the employer must show
how they picked those unlucky
ones.
- The employer must show in
detail the selection procedure
and criteria. This can range
from "last in first out" to a
scoring system, with the
employer giving points for
certain job skills.
- The selection criteria
should not be based upon an
individual’s view of each
employee (for example, what the
personnel manager thinks).
- Once the criteria has been
agreed it should be kept to.
- The employer should also try
and agree the selection criteria
with the employees’
representatives or Union.
The selection procedure and
criteria cannot be based upon
unfair reasons such as:
Trade Union membership or
activity.
If the selection criteria is
based upon Race, Disability or
Sex the effected employee can
claim under Unfair Dismissal or
the relevant discrimination law.
The employer must consult
each effected employee before
dismissal notices are handed
out, so that there is a chance
of real consultation and time
for the employee to respond. The
selected group may change due to
the consultation process.
The consultation must involve
the following:
- Why their type of job is
under threat.
- Explain why according to
the selection criteria.
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