In the unfortunate event of having to make workers redundant, there are specific rules and regulations that must be followed. Failure to follow these processes correctly could eventually result in legal action. One of the key issues is consultation with affected staff. Here we explain why it is important to consult early for redundancy to avoid future repercussions.
What is redundancy consultation?
When changes such as redundancy are proposed by a business, employees must be given time for consultation. This is a key part of the process. Employers are expected to engage with employees about the changes being proposed. Both the proposed changes and the process you plan to follow should be consulted on. If some workers are to be made redundant while others will keep their jobs, it is important to consult on the process that will be used to determine who stays or goes. Employers should always aim to be transparent and open here.
How long does redundancy consultation take?
The length and type of redundancy consultation needed depends on the number of employees who will be affected by the proposed redundancies. If less than 20 employees face being made redundant, there are no specific rules as to how consultation should be carried out. A collective consultation is required, usually involving a representative from a Trade Union. There are several steps involved in a collective consultation and appropriate time should be allowed for each.
The Redundancy Payments Service (RPS) should be notified before consultation starts, trade unions or elected employee representatives should be contacted and information should be given about the planned redundancies, allowing staff enough time to consider them. Time must also be given for staff to ask for further information and a response to be given, while termination notices have to be issued showing the agreed leaving date. Once the consultation is complete, redundancy notices can be given.
If there are 20 to 99 redundancies to be made, there must be at least 30 days of consultation. In the case of more than 100 redundancies, the consultation must start at least 45 days before any dismissals take place.
Why is it important to consult for redundancy early?
Failure to follow the redundancy consultation procedures appropriately could result in those affected taking legal action. This includes failure to allow for the appropriate consultation length as this means the redundancy procedures have not been followed correctly. As such, any redundancy made would be unfair and could result in an employment tribunal. An unfair dismissal claim can be made when an employer terminates a contract without fair reason or where the employer had fair reason but handled it using the wrong procedure.
This differs from a constructive dismissal claim, which can arise when an employer commits a fundamental breach of contract which forces the employee to resign. If you feel a redundancy process has been handled incorrectly, you can contact Employment Law Friend or a similar firm for help and advice. The number of employment tribunals grew 27% in 2020, figures show, much of which has been attributed to pandemic-related redundancies.
The consultation process in redundancy is vitally important and there has to be a genuine attempt to give the employee a chance to contribute. Getting the consultation timeframe right is an essential part of this.