Handling small-scale redundancies
The regular Thompsons Solicitors blog
British workers are feeling less secure than at any time in the past 20 years.
Below-inflation pay cuts are creating a cost of living crisis whilst under-employment and more precarious working terms are becoming the norm for many. Redundancies or the threat of them are a weapon used too casually by employers looking to save money and increase profits in uncertain times, particularly in non-unionised workplaces.
This is why it is timely for Acas, the conciliation and arbitration service, to publish new guidance that gives employers advice on how to handle small-scale redundancies. However, it’s a given that no unscrupulous employer will make any effort to inform employees of their rights and the proper legal process, so the guide can also be used by employees to insist on that happening.
Despite this Government slashing the redundancy consultation periods, there are still minimums. Where an employer is proposing to make 20 or more employees redundant within 90 days, they must consult with their employees on the changes at least 30 days before the date of dismissal. The consultation period for more than 100 people is a minimum of 45 days.
However most redundancies number less than 20 workers which means there is no minimum consultation period, and in most private workplaces no union representation to guide them through.
‘Handling small-scale redundancies – a step-by-step guide’ is aimed particularly at small and medium sized businesses that are considering making fewer than 20 people redundant.
Acas rightly advises employers to first consider alternatives to redundancies such as offering flexible working, stopping the recruitment of new workers, retraining staff to facilitate new areas of growth, or reducing or ending overtime. If these are not openly considered and offered, workers might want to refer to the guide and ask their employer why.
However, if the alternatives have been looked at and rejected, Acas recommends a seven step plan:
1. Brief managers to make sure they are prepared to effectively handle a testing redundancy situation
2. Talk to staff – it is a legal requirement to consult with each affected staff member individually, not only those who might face redundancy
3. Be careful in how staff are chosen for redundancy using clear criteria for which posts may have to go
4. Talk about redundancy notice and pay – this can help reassure staff
5. Consider notice period rights and what time off workers are allowed to take to look for other work
6. Uphold a staff member’s right to appeal
7. Think about the future of the business and make the best use of remaining staff
Good employers should already be aware of what is legally required and what is considered proper ethical behaviour. However, some employers seek to ignore the law or whinge that it is too complicated and weighted against them. Acas’ simple guide, while a good antidote to their excuses and useful information for workers and their representatives, is ultimately no replacement for union representation.
To access step one of the guide, click here