Redundancy woe

Redundancy is one of the most sensitive issues employers have to deal with. Unlike conduct, where the individual carries culpability, with redundancy the employer is dismissing a blameless individual. The situation needs to be handled differently. Since the numbers involved are less than 20, the statutory disputes resolution procedures still apply.

Employers need to consult with staff and contact any staff on holiday, maternity or sick leave to invite them to attend. Doing so by letter will comply with stage one of the statutory disputes resolution procedures.

In the letter describe the problem, why it has arisen and what has been done to remedy it. Emphasise that you are looking for ideas as to how the jobs could be saved. Indicate that you would consider volunteers and any requests to reduce hours.

Arrange a time and place meeting with the staff. Read the letter, give copies to everyone and leave additional copies around. Check every member of staff has been informed by letter.

If you have an agreement with a trade union you should invite them to the meeting. After you have made the announcement end the meeting. It is not a good idea to take questions or respond to suggestions at this stage.

Re-convene the meeting a week later. In the meantime, deal with any queries individually and summarise and respond in writing. Examine any suggestions properly as they may provide a solution.

You might wish to present the problem in your announcement letter as an 'hours-attended-total' problem rather than a 'jobs' one. If the total attended hours by all staff is 14 staff x 40hrs at 560 hours a week and you believe the amount of work you will have available is 400, you have to lose 160 hours per week. One option would be to dismiss 4 staff. You might find that all staff say "we'll all give up 11 hours per week until times get better." Or some variations of several being willing to give up hours but still leaving you with a redundancy or two, rather than the full four.

You must conduct such an exercise and do it fairly. If you do have to choose someone then, with last in first out being effectively banned from the 1 October 2006, by the ACAS code on age, use an appraisal-based system. Choose only fact based criteria: qualifications; presence/absence record; disciplinary warnings; timekeeping; quality/quantity performance and any other criteria which are relevant and objective.

See www.professionalbroking.com for unedited version.

- Peter Done is Managing director, Peninsula Business Services.