The Guide to Making an Employee Redundant in 2020

This year, many business owners have been forced to close their businesses for extended periods of time. For many, this has resulted in more serious consequences as they have had to either shut down completely or make some staff redundant in order to continue operating.

Making a staff member redundant is never easy; alongside the emotional toll it will take, and you need to make sure that you are following the law carefully when you do this.

Below, we are going to give you some tips to help you move through this process smoothly. Read on to find out what they are.

Avoiding Redundancies

Before you think about making a staff member redundant, you must consider some of the things that you can do to avoid this. You should not be recruiting for any new staff or allowing staff to work casually.

You should also seek applicants for early retirement or voluntary redundancy as this could solve your problem. If you can’t prove that you have tried to avoid redundancies, you could have a serious legal issue on your hands.

Seek Legal Advice

When it comes to any kind of employment matter, you need to make sure that you are following the word of the law. Employment solicitors are well-versed in employment law and can help you to navigate this process in the right way. They can let you know when to begin redundancy talks and what kind of evidence that you need. If you don’t already have an employment solicitor on retainer, now is the time to get one.

Giving Notice

You can’t just make someone redundant on the spot as there are certain processes and notice periods that you need to follow. An employee who has been working at your company for many years will require a longer notice period than one that you just hired.

For example, an employee who has been working there from 1 month to 2 years will require at least a week’s notice. For employees with 12 or more years’ service, a 12 week notice period is required.

Understanding Redundancy Pay

Finally, you need to understand redundancy pay before you go ahead with making an employee redundant. Not all employees will be eligible for this, so it doesn’t hurt to discuss it with your solicitor before agreeing to pay it.

Your employee will have a right to a written statement detailing how much redundancy pay they are receiving and how you calculated this. Just make sure you are falling in line with the statutory rates.

Be Careful

The last thing you want is for an ex-employee to make a claim that you made them redundant in the wrong way. You should make sure that you are giving them the right amount of notice and that you are following the law carefully. Make sure to consult your solicitor so that everything goes as it should.

This is not an easy process for anyone involved, but the truth is that, sometimes, it is unavoidable – just remember to prepare yourself with the right knowledge and understanding before beginning this difficult process.

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