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A Manager's Guide to Managing Redundancy

Many British businesses have been slow to
appreciate the full extent of changes thatIn a redundancy situation companies are able
have occurred over the years to Employmentto act with complete autonomy, there is no
Law and continue to adopt out of datelegislative body looking over their
disciplinary and redundancy procedures. Luckyshoulders, monitoring the methods used and in
for them then that the only people who seemthe absence of a trade union, employees are
less aware of the changes are the employeesunlikely to be au fait with details of
themselves; few employees would believe theemployment law. However, if claims of unfair
extent that they are now protected, but thatdismissal are subsequently received the
is  not  likely  to  last.procedures and methods a company adopted will
be laid bare and heavily scrutinized and the
With the maximum compensatory award in unfairconsequences of inadequate procedures
dismissal cases now over £50,000 and withpenalised.
tribunals willing to make awards without any
regard to a company's financial position,A tribunal is not a pleasant place for any
small to medium sized businesses are most atcompany official, with the benefit of
risk.hindsight a tribunal will asks difficult
questions; what was a real crisis six months
Part-time and agency workers now haveearlier may be difficult to convey to people
comparable rights as those enjoyed by fullwho have no knowledge of the business or in
time employees and discrimination now carriessome  cases  the  industry.
a much wider definition, with even more to
come.Being  seen  to  be  fair
With the introduction of "no win, no fee"Being a good employer who operates in good
legal representation an employee now hasfaith and with genuine intentions is not
little to loose and much to gain by bringingenough, such employers are more and more
a claim against a former employer. Tribunalsfinding themselves having to pay substantial
do not operate in the same way as a court ofcompensation to former employees, some of
law, the company is not 'not guilty' untilwhom may be undeserving but nevertheless know
proven 'guilty' but rather considered guiltyhow  to  play  the  system.
until they can prove otherwise. In the
absence of real evidence a tribunal will takeUK companies are no longer seen as merely
anecdotal evidence and decide subjectivelyproviding employment but as being socially
for themselves as to who, on balance, theyresponsible and when a company takes on new
believe.employees they are assuming more
responsibility for that person than many
Redundancy  guidelinesrealise.
The redundancy guidelines published byToday companies have to be very aware of what
governing bodies and often the advice that istheir responsibilities are and how they must
received from employment law specialists isact. For small companies where the owners may
not always as helpful as some businessesbe more entrepreneurial, the business more
might like. Take for example where redundancyhand to mouth, there is no provision to allow
guidelines talk of a 'consultation' process,them to operate in any other way than that
what constitutes consultation is often openexpected of larger and more established
to interpretation and what an organisationorganisations.
might itself regard as 'consultation' a
tribunal might take as 'a premeditatedSome managers can often make the mistake of
foregone  conclusion'.thinking that redundancy procedures do not
apply to junior staff and will still issue
This article views the redundancy processredundancies on the fly, such action will
from an organisations point of view whereonly expose them to a possible claim for
senior managers are likely to be underunfair dismissal that they will have every
considerable pressure, frustrated and keen tochance  of  loosing.
act.
A  step-by-step  guide
Where  fools  rush  in
To support senior managers a questionnaire
Few people, if any, relish the need forhas been devised that will guide senior
redundancies but often there is a desire frommanagement through the steps required when
management to get a difficult task over withmaking  redundancies.
as quickly as possible so that the
organisation can move on. Managers need to beBy completing the questionnaire a manager
educated in the fact that although followingwill obtain a redundancy procedure checklist
the proper guidelines will take longer thanand if each step is completed a company can
just handing out redundancy notices lettersbe confident that they will be able to
the process can bring benefits to thevigorously defend any future unfair
employer  if  done  properly.redundancy claims they receive.



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