Is there a genuine redundancy situation?

• What is the business rationale for the change? Make sure there is documentary evidence to support the rationale.
• What are we trying to achieve? i.e. Is there a clear before and after scenario?
• Have we considered other ways to achieve this without the need for redundancies? e.g. restrictions on recruitment / reducing overtime / reducing use of agency workers / voluntary early retirement / voluntary redundancy. Document any alternatives considered and, if rejected, why.
• What areas of the business (other than, perhaps, the part where redundancy will directly affect) will be impacted by the change, either directly or indirectly?

Will collective consultation be required as well as individual consultation?

• How many people will be impacted by the proposals?
• What other redundancies / restructures have been proposed to take effect in the last 90 days?
• Have we triggered the obligations to consult collectively? (Remember volunteers and expiry of fixed term contracts because of the current situation count in the numbers) NB: If so, there are specific rules around who should be consulted, the timescale for consultation, the information to be disclosed and the scope of consultation process.
• What individual consultation process will be followed? NB: Individual consultation is required regardless of whether the requirement to collectively consult is triggered.
• Do we want to ask for volunteers before commencing a formal process?
• When will consultation commence? NB: This should be as early as possible when plans are still proposals, and no final decisions have been made.

Considerations if collective consultation is required

• Timing: Consultation must begin as soon as proposals to make redundancies are formulated but before any final decisions are made.
• Who are appropriate representatives? Union representatives where affected employees are in the bargaining unit for which the union is recognised. For other affected employees you need to elect employee representatives unless there is a standing body already in place for this purpose. NB: There is a specific process to follow to elect representatives.
• Provide information: Set information needs to be given in writing to appropriate representatives before consultation can begin i.e. reasons, number and descriptions of employee, total number employed, selection method proposed, proposed procedure, how redundancy pay is calculated, number of agency workers.
• Minimum periods: Consultation must last for 30 (where 20 – 99 employees) or 45 (where 100+ employees) days before first dismissal takes effect.
• Consultation must cover: ways to avoid dismissals, reducing number of employees dismissed, mitigating consequences of dismissal, selection criteria to be used.
• Remember need to notify the Secretary of State on HR1 form (30 or 45 days (depending on number of employees) before first dismissal takes effect).

Who is going to be in the selection pool?

• Which employees are impacted by the proposals? Be wary where pool is just one employee.
• Are there any other employees whose roles are interchangeable who should be included?
• Are there any other employees in other departments who might be impacted by the changes?
• Is there any agreed procedure / custom in place for selecting the pool (e.g. with the union)?
• Is ‘bumping’ appropriate?

Will selection of employees to be made redundant be required?
If so:

• Are there any agreed criteria / customs in place for criteria used (e.g. with the union / under the redundancy policy).
• Ensure objective criteria are used as far as possible.
• Avoid any criteria which could have a discriminatory impact e.g. re family leave / disability absence.
• Who will carry out the scoring process? How will scores be verified? What supporting documents will be considered?
• Will moderation of the scoring process be required? Need to ensure criteria are applied consistently, fairly and reasonably.
• Seek agreement to the proposed criteria with employees and the union in advance of the scoring process.

Consultation process

• Follow your redundancy policy.
• Give prior warning to the union of proposals where possible.
• Initial announcement of proposals to affected employees – employees will be “at risk”.  Remember to include affected employees on maternity leave, sick leave etc.
• Consult over proposals and alternatives, pool, selection criteria with individuals and the union NB: Ideally at least 2 individual consultation meetings should take place (may be more depending on matters raised).
• Ensure any comments / suggestions made by union / employees are properly considered and responded to during consultation before final decision made.
• Decide on whether to implement the proposals.
• If proposals are to go ahead, carry out selection process (if required) and notify those employees provisionally selected.
• Further consultation meetings with provisionally selected employees – discuss selection process, scores and alternative vacancies NB: Make sure employee informed of all vacancies across the whole organisation and any associated employers.
• Consider if any reasonable adjustments are required to alternative roles.
• Remember that employees on maternity / adoption / shared parental leave have priority to be offered suitable alternative employment.
• If suitable alternative employment is accepted remember statutory 4-week trial period.
• Consider allowing employees to be accompanied at consultation meetings, especially the final meeting – check terms of your redundancy policy.
• Consider whether reasonable adjustments are required to consultation meetings / redundancy process / alternative roles.
• If no alternative hold final consultation meeting and issue notice. Confirm whether employee to work notice or receive PILON. If appropriate, make clear that any enhanced redundancy sum is dependent on the employee signing up to a settlement agreement.
• Make sure to offer a right of appeal.
• Remember employees have the right to time off to look for alternative employment once notice given.

Payments

• Is notice to be worked or paid in lieu?
• Accrued untaken holiday up to the termination date to be paid.
• Statutory redundancy pay.
• Any enhanced redundancy pay?