Furlough ending may herald redundancies – what needs to be considered?
As the furlough scheme comes to an end, some employers may find that they have no other choice but to make some roles redundant. Below we cover some of the important elements to consider:
A redundancy situation exists where:
- a business or part of it, or a specific location is closed down
- the requirement for employees to do work of a particular kind has reduced or ended
There are various steps that must be considered in any redundancy situation:
- notification to the Department of Business Innovation and Skills (on form HR1) if there are to be more than 19 employees affected
- collective consultation in cases where more than 19 employees are affected
- the requirement to consult and inform appropriate representatives of affected employees
- the selection process that will be used to decide upon redundant posts
- individual consultation
- notice or payment in lieu of notice
- redundancy payments
- offering a right of appeal
Employers should first consider if there are alternatives to redundancy, including:
- re-training employees into other areas (redeployment)
- temporary lay-offs or short-working
- changing terms and conditions such as a wage freeze, wage cut, reduction in bonus or pension contributions.
The process to follow can be time-consuming and contentious and employers are advised to seek advice prior to embarking on a redundancy process. 121 HR Solutions can support employers who are considering redundancies and offer a fixed fee service to do so. Contact enquiries@121hrsolutions for further information.