Making redundancies due to coronavirus
Uncertainty, lack of demand and enforced closures following the coronavirus outbreak are forcing businesses to change the way they operate. A lot of business owners are currently making difficult decisions just to keep afloat – one such decision is whether you need to make staff redundant.
If you are an employer that needs to make redundancies as a result of coronavirus, it is essential that the correct procedures are followed. It may seem like a straightforward way to save costs. However, a business could be faced with crippling compensation claims that outweigh the costs savings if policies are not adhered to.
Even in times such as these, a fair redundancy selection and consultation process must be followed. This includes:
Establishing pools for selection for redundancies with a fair and objective selection criteria, fairly applying such criteria, considering alternative employment and consulting on an individual basis with those affected. The selection process must be objective and cannot discriminate on protected characteristics or personal preference.
To make more than 20 members of staff redundant then the consultation must begin at least 30 days before the first dismissal and consultation should be with a union representative or employee elected representatives. For 100+ employees this period increases to 45 days.
Affected employees must be given the correct notice, either statutory or the notice outlined in their contract of employment.
For more information on the risks of unfair dismissal claims in the coronavirus crisis, read here. If you would like further advice on the redundancy process, or information on the alternatives to redundancy during this time, then our expert employment team is here to help email@example.com< < back to latest news