REF: ANNOUNCEMENT OF POTENTIAL LAYOFFS

The Main legal requirements to be considered on redundancy are detailed below;

Notice Periods- The employees who have been selected for redundancy are entitled to a notice prior to the expiry of their employment. The stipulated period should be at least one week for those that have stayed employed between a single months up to two years. acas.org.uk

Redundancy Consultations - The employer must provide further information and support to those affected.  Ensuring the management, HR departments are equipped with useful information and knowledge in handling redundancies as they are prone to have difficult conversations. This extends to the employee as they are concerned about the way forward.

Redundancy Payments – The employees who have been in the same employment for over 2 consecutive years may be entitled to Statutory Redundancy Payment.  For employees with 20 years’ service in the organization qualify for the upper limit pay which is the maximum. “The Statutory redundancy pay is capped at £508.” Acas.org.uk

Psychological Contract – This may play a big part in the redundancy process entails as an unwritten anticipations for the created employment relation. This is different from the prescribed categorised employment agreement which defines the employer-employee relationship.

Impact of Redundancy

• The main impact as a result of redundancy requirements can set precedents for investors and other agencies involved in the organisation to have an interest in accountability of the redundancy. They have to provide accounts to the stakeholders to improve systems reliability and any unwanted behaviours.
• The way an organization deals with redundancy has highly powerful implications for those remaining in the business. If this is not well managed, planned and received, this can demoralise the workforce as they feel shaken.
• Employers often make assumptions that the employees will cause trouble after being served with a redundancy notice, hence they are marched with security guards to the exit on their final day which humiliates the employee and unnecessary at most times.
• In cases where there is highly confidential information involved, they may need to be some security measures in place.
• Some badly handled redundancies can end up being heard by an employment tribunal, especially if the employees bring a case against the employer for being unfairly treated.
• The timing of redundancy announcement is also crucial, at the same time trying to keep some staff at your side as they may panic as a result of not keeping them well informed of the situation, clearly explaining the need to downsize. This holds vital consequences on the performance of any given company.

Fair Dismissal

Since the employee has the legal right to a fair dismissal the organisation has to abide by the Employment Relations Act. Employees are therefore protected from any form of discrimination and harassment based on Equal Act of 2010. The employer must provide a written statement of the reasons for termination of contract /dismissal, these may include

• Redundancy
• Conduct
• Capability
• Substantial reasons

It is important for the employer to prove that they have performed rationally in handling that aim as adequate for discharge. The employer must familiar with terms of unfair dismissal which include;

• Discernment that is based age, gender, faith, race, pregnancy, maternity, whistle blowing etc.
• Acting as a Trade Union Representative

The employee will have to look at important details which may qualify them to claim for possible compensation.

Redundancy Stages

Stage 1-   This should consist of planning, whereby the HR department and line bosses co-operate to deliberate on the departmental arrangement.

Stage 2 - This is by fairly examining and recognising of the pool of workers that will face the probable threat through the development of a redundancy process that saves them from harassments and seeks retention of the most qualified staffs.  

Stage 3 – At this point, that’s when to notify the employees as well as consult. After the notification and consultation an additional meeting is needed for responsible choices to be made. The employees may have arguments to put forward and these should be considered by the employer

The employer must notify the staffs impacted by the decision via writing and also highlight on how the payments are to be acquired. The employees have the opportunity of objection but in the absence of provision and appeals then the dismissal occurs through payment.

Exit Interviews

These interviews are essential as the offer staffs the chance to understand the rationale behind their dismissal. This is important for the employer as they can collect vital information and reasons for leaving are disclosed detailing any problems incurred during their time of employment. Successful exit interviews offers exceptional opportunities for managers to gain expert understanding into employees’ observations of the establishment. The overall idea will create a platform for discussing underlying workplace issues, managerial and leadership issues. This is also important for the employee as they are able to use express their sights on their working involvement which would in turn help in improving the situation at the firm.