Handling a redundancy situation is difficult for both the employer and the employee. Up-to-date knowledge and preparation is the key to a successful process. We’ve featured the top 5 questions and queries about managing redundancies in this article, but if you have any queries speak to your HR Advisor in advance of starting the process to make sure you are following the right path.
Can I select fixed-term employees for redundancy because of their fixed-term status and not include them in the redundancy pool?
The answer is no. The Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002 made it unlawful to treat fixed-term employees less favourably than comparable permanent employees. They must be treated the same and must be considered in the redundancy pool alongside any permanent members of staff.
Can redundancies be made on account of performance?
A common misconception surrounding redundancies is that an employee can be made redundant as a result of performance concerns. In actual fact, if an employee is not performing to the expected standard then this should be handled via disciplinary/capability proceedings. Employees who are made redundant directly due to their performance rather than a redundancy situation may raise a claim of unfair dismissal.
Can a person be made redundant because of their age?
No. Once a person reaches retirement age they cannot be forced to retire. Such action could result in both unfair dismissal and age discrimination claims.
Please be mindful that anyone aged 55 or over who is made redundant or who’s fixed term contract is terminated, is automatically entitled to access their pension (if they’ve contributed) at an un-reduced rate, i.e the employer may need to top up the employees’ pension pot and this can be a significant financial amount. It may not be financially viable to make the post redundant! Ensure you seek HR advice throughout the process but particularly once a pension estimate has been requested.
Are all employees entitled to statutory redundancy pay?
Another common myth is that all employees are entitled to statutory redundancy pay if they are made redundant. This isn’t the case, as employees are only entitled to this pay if they have two or more years’ continuous service with a company. However, some businesses have their own enhanced redundancy policy, and in such situations should take precedence over statutory entitlements.
Do people on maternity leave have special protection from redundancy?
People on maternity leave can still be included in a redundancy pool with any other employees. However, the reason for including them must not be purely because they are pregnant or on maternity leave as this may raise a claim of sex discrimination. Consideration should also be given to offering them suitable employment.
For further advice relating to change management, restructures and redundancy situations please call the team at FusionHR on 01924 827869, speak to your HR Advisor or email [email protected]
