{"id":175852,"date":"2022-09-14T06:26:32","date_gmt":"2022-09-14T05:26:32","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=175852"},"modified":"2023-07-25T00:23:27","modified_gmt":"2023-07-24T23:23:27","slug":"potential-redundancies","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/potential-redundancies\/","title":{"rendered":"Dos and Don&#8217;ts for UK Employers When Faced With Potential Redundancies"},"content":{"rendered":"\n<p>Redundancy is where you no longer need a staff member to carry out a job role. For example, if your business undergoes restructuring or changes its service output, you may need to dismiss some employees. If you need to make affected employees redundant, you must conduct a fair procedure and a lawful redundancy process. Otherwise, you may face a tribunal claim for unfair dismissal. This article will explain what you should and should not do as an employer when faced with potential redundancies in England.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Exhaust All Alternatives to Redundancy<\/h2>\n\n\n\n<p>Before going ahead and making employees redundant, you should exhaust all alternatives. Alternative options for making staff redundant include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>offering part-time roles;<\/li>\n\n\n\n<li>cutting back on staff <a href=\"https:\/\/legalvision.co.uk\/employment\/overtime-rates\/\">overtime<\/a>;<\/li>\n\n\n\n<li>offering staff another position in your business; and<\/li>\n\n\n\n<li>training employees in new skills.<\/li>\n<\/ul>\n\n\n\n<div  class=\"box box--icon box--info\">\n    <p>If you find your staff an alternative role in your business, they do not have to accept it immediately. Instead, they should be able to trial the position for four weeks. If you offer your staff more than a four-week trial, you should agree to this in writing.<\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Be Open, Genuine and Fair<\/h2>\n\n\n\n<p>If you have to start potentially making redundancies, ensure that you are open, genuine and fair throughout the process. This means that you should keep your employees aware of what is happening, even if you are not legally required to consult your employees collectively.&nbsp;<\/p>\n\n\n\n<p>In addition, you should show that you are genuine when considering potential redundancies. You can do so by referring to the potential redundancy as a \u2018proposal\u2019 and listening to your employees&#8217; views. If you act openly, genuinely and reasonably, your staff are more likely to understand your position and accept that redundancies may be necessary.<\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left 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For example, all your staff will be entitled to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>reasonable time away from work to look for new employment or training; and<\/li>\n\n\n\n<li>not be selected for redundancy, where this is unfair.<\/li>\n<\/ul>\n\n\n\n<p>Additionally, some of your staff may be entitled to <a href=\"https:\/\/legalvision.co.uk\/employment\/calculate-redundancy-pay\/\">redundancy pay<\/a>.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do Not Make Redundancies Without a Genuine Reason&nbsp;&nbsp;<\/h2>\n\n\n\n<p>If you face potential redundancies in your workforce, you should know that you can only do so if you have a genuine reason. Otherwise, a redundancy based on an unlawful reason can give rise to a claim in an employment tribunal.<\/p>\n\n\n\n<p>Genuine reasons for redundancy include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>the work your employee does is no longer required in your business;<\/li>\n\n\n\n<li>other employees are carrying out your employees&#8217; job;<\/li>\n\n\n\n<li>your business is moving to a new location;<\/li>\n\n\n\n<li>your business is closing down, possibly due to <a href=\"https:\/\/legalvision.co.uk\/corporations\/pre-insolvency-moratorium\/\">insolvency<\/a>; or&nbsp;<\/li>\n\n\n\n<li>your business is changing how it does things.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Do Not Forget To Make Redundancy Payments<\/h2>\n\n\n\n<p>If you make staff redundant, you must ensure that you pay them their entitlement to a contractual or statutory redundancy payment. A contractual redundancy payment is where you state in your employees\u2019 employment contracts an amount they will receive if you make them redundant.&nbsp;<\/p>\n\n\n\n<p>Where you have employees who have been with you for at least two years, they are legally entitled to a minimum statutory redundancy payment. The amount due is <a href=\"https:\/\/legalvision.co.uk\/employment\/calculate-redundancy-pay\/\">calculated using a formula<\/a> so that it may vary for different employees. However, you can pay your employees more than this amount.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key Takeaways<\/h2>\n\n\n\n<p>There are many things you should and should not do if you face a situation where you may have to make redundancies. First, you should ensure that you exhaust all alternatives before making your staff redundant, such as offering your staff a part-time role in your business. You should also give your employees ample time to look for a new job. Finally, ensure you do not make a staff member redundant without a good reason.&nbsp;<\/p>\n\n\n\n<p>If you have questions about redundancy, our <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">experienced employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <a href=\"https:\/\/legalvision.co.uk\/membership\">membership page<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently Asked Questions<\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1663132604595\"><strong class=\"schema-faq-question\"><strong>What is something an employer must do when facing potential redundancies?<\/strong><\/strong> <p class=\"schema-faq-answer\">You should be open and genuine throughout the redundancy process, so your employees know you are listening to them.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1663132619829\"><strong class=\"schema-faq-question\"><strong>What is something an employer should avoid when facing potential redundancies?<\/strong><\/strong> <p class=\"schema-faq-answer\">If you make an employee redundant, you should avoid paying them incorrectly. You should pay them their proper entitlements according to their employment contract or statutory redundancy payment entitlement.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/175852\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/potential-redundancies\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"Dos and Don&#8217;ts for UK Employers When Faced With Potential Redundancies\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Redundancy is where you no longer need a staff member to carry out a job role. For example, if your business undergoes restructuring or changes its service output, you may need to dismiss some employees. If you need to make affected employees redundant, you must conduct a fair procedure and a lawful redundancy process. Otherwise,<a href=\"https:\/\/legalvision.co.uk\/employment\/potential-redundancies\/\">Continue reading <span class=\"sr-only\">&#8220;Dos and Don&#8217;ts for UK Employers When Faced With Potential Redundancies&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":3245,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1021,2142,2146,4389,171802,1976","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,291,542],"class_list":["post-175852","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-redundancy","tag-employees"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast 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