Ten Questions About Redundancy

This is the number one question you are likely to face about redundancy and responding to it can be challenging. People who have been selected for redundancy are likely to feel very upset and angry, so it is important that you are prepared to face a range of emotions. When answering this question, it is important to be aware of the distinction between ‘people’ and ‘posts’. Posts, not individuals, are made redundant. Ensure you can explain to your team member why they have been selected. For example, is there a reduced requirement for the type of work that they carry out? Have new technologies or systems been introduced? Perhaps a large customer or client has been lost? Is the business facing significant pressure to cut costs? Explaining why somebody has been selected for redundancy (either on an individual or a collective basis) is one of the most important areas to get right. It is essential, therefore, that you spend time on this area and can explain it clearly.

3. What Selection Criteria Have You Used?

This question is likely to follow on from a discussion about why an individual has been selected for redundancy. If more than one person is at risk of redundancy, it is likely that selection criteria will be used to make decisions about which posts are to be made redundant. Remember to stick to the facts, try to remain objective and avoid giving your personal opinion. Examples of commonly used selection criteria include skills and experience, standards of work performance, attendance and disciplinary records, length of service and flexibility and adaptability. If your organization has used selection criteria, check if you are allowed to share an individual’s scores with them and ensure you know how much detail you can provide. You should also check the position regarding the discussion of other people's scores, and whether these can be provided on an anonymized basis to aid the discussion.

4. What Will My Redundancy Payment Be?

People will be keen to know what level of redundancy payment they can expect, should their job be confirmed as redundant after the required period of consultation. Employees with more than two years service are entitled to a statutory redundancy payment. The amount depends on each individual’s age, their length of service and their weekly pay. [2] Some employers offer enhanced redundancy packages (perhaps to encourage voluntary redundancies) so ensure that you can explain the full details of any enhanced package if it applies. You should also check the position regarding contractual entitlement to benefits (such as a car allowance, bonus payment or share options) and whether these apply during a redundancy notice period.

5. Are There Any Alternatives to Redundancy?

A key part of the redundancy process is for employers to identify whether any suitable alternative role(s) are available into which employees at risk of redundancy could be redeployed. If your organization has identified a suitable role then employees have a trial period of four weeks to work in that role. If an employee continues after four weeks then they are not redundant and employment will continue in the new role. Ensure that you are aware of any suitable alternative roles (and have discussed them with your organization’s HR or redeployment team, if appropriate). You should be able to explain the details of each role to your employee and also how the redeployment process would operate in practice.

6. Do I Have to Accept an Alternative Position, If It Is Offered?

Any alternative position that is offered should not be an obvious reduction in status, salary or responsibilities. However, the duties and responsibilities could be quite different. If an alternative role is quite a departure from what your team member is doing at the moment, remember that they might feel anxious about taking on a very different role. You can pre-empt some of these concerns by talking through how your employee will be supported (e.g. with coaching or job-specific training and development) to help them get to grips with the new role. As part of your discussions about alternative positions, you should make it clear that if your employee decides not to accept the alternative position without a good reason for doing so, they may lose their rights to a redundancy payment. [3]

7. If There Are No Alternatives to Redundancy, What Support is Available to Help Me Find Another Job?

If there are no alternatives to redundancy, your employee will want to know if your organization is able to offer any support to help them move on in their career. For example, some organizations choose to offer a package of redundancy support tools, including CV workshops and interview coaching. If this is not something that your organization provides, why not put together a simple redundancy support pack yourself? For example, you could include information about financial matters and local options for careers support. [4]

8. What Is the Timescale for the Redundancy Process?

It is of critical importance that managers follow correct procedures, particularly when it comes to observing appropriate consultation periods and communicating the final outcome. As a minimum, your organization should follow the statutory three-step dismissal procedure. Firstly, this involves informing employees who are deemed ‘at risk’ or redundancy (by written notice). This should then be followed up with a meaningful and genuine consultation meeting where alternatives to redundancy and possible ways to limit its impact are discussed. The final decision should be given to the employee in writing after the required consultation period has passed. Any action taken by a manager to pre-judge this process can result in a redundancy decision being unfair, so it is important to closely follow the appropriate timescales.

9. Am I Allowed to Take Time Off to Look for Another Job?

An employee at risk of redundancy is entitled to reasonable time off to look for a new job during the redundancy consultation period, which includes attending interviews and appropriate training to help them find another role. [5]

10. What If I Am Not Happy With the Way in Which I Have Been Selected for Redundancy?

It is important that you inform your team member of their right to appeal against redundancy. This is a statutory requirement, so most organizations will have a specific appeals process which you can refer to. The right of appeal is particularly important if your employee is unhappy about any aspect of the process. You should explain that any appeal must be given in writing, clearly setting out the issue or problem concerned. Remember that your employee is also entitled to seek independent legal advice about any aspect of the redundancy process.