Making an employee redundant: what you need to know

Handing out redundancies is never an easy task, but often a necessary one when things are changing in your business. Redundancies are especially tricky when your business is changing hands, so make sure you have an experienced team of TUPE solicitors to help you manage processes in the right way.

If you’ve never made anyone redundant before, it’s understandable to feel confused and unsure about what’s involved. Whether you’re struggling to take the first step or just can’t find the right words, this blog will help you to overcome some common areas of concern during redundancy proceedings.

Follow regulations

Before making employees redundant, make sure that their dismissal will be a fair one. Lots of businesses end up paying fines at a later date when employees contest their dismissal at court. Hiring a solicitor can help you to avoid any legal repercussions, as they’ll know exactly who you can make redundant and why. You’ll also need to follow best practices when it comes to informing members of staff about their upcoming dismissal, such as offering consultations and sending warning letters.

Be sensitive

Making employees redundant requires a degree of sensitivity, as losing a job is difficult for everyone. Take some time to think about how you’re going to handle informing staff about upcoming cutbacks and work with your HR team to ensure messaging is consistent. Most employees will have lots of concerns and questions, even if they haven’t received a redundancy risk letter. Understandably, everyone will feel a bit worried during these uncertain times, so do your best to reassure those who aren’t being made redundant that their jobs are secure.

Pay employees what they’re due

Redundancies don’t come without a cost, so you need to be clear on how much you’ll have to pay individuals should they be made redundant. Staff who’ve been working for you for a number of years will be entitled to more than a junior employee who’s only been working at your business for weeks or months. It’s also important to bear in mind that the higher an employee’s salary, the more money you’re likely to be paying out.

Consider voluntary redundancies

Before making employees redundant, it’s a good idea to reach out to staff and ask if anyone would be happy to consider voluntary redundancy. This can help to reduce discontent amongst your workforce and minimise negative impacts. However, if not enough people volunteer, you’ll have to proceed with your original redundancy plan.

Offer support

Because redundancies can bring with them a whole host of financial, emotional and social difficulties, many businesses offer their employees lots of support before and after their dismissal. This could involve having a counsellor on-site or offering drop-in sessions where employees can discuss concerns about the future. If your business is partnered with another firm, you might even be able to refer staff to new jobs to reduce their stress. Don’t forget to reach out for support yourself should you need it.