checklist for handling redundancies

Identify the business reason for the proposed redundancies and check whether they will fall within the legal definition of redundancy (defining redundancy).
Consider whether the business's needs could be met in some way that avoids redundancies (considering alternatives).
Draft proposals on:
– the number of employees who need to be dismissed;
– the sections of the business from which they will be drawn;
– the criteria that will be used to select employees for redundancy;
– the payments that will be made to employees who are dismissed; and
– the steps that the company can take to minimise the impact of the dismissals through redeployment, retraining and assistance with obtaining work outside the company.
Announce the proposed redundancies to the workforce (warning and consultation).
If 20 or more employees are likely to be dismissed at one establishment within a period of 90 days, consider whether all the affected employees are covered by collective bargaining or, if they are not, whether they are represented by appointed employee representatives. If not, arrange for the election of employee representatives (election requirements ).
Where a union is recognised or employee representatives exist and 20 or more dismissals are proposed at one establishment within a period of 90 days, consult with trade union or employee representatives on the company's proposals (collective consultation) and notify the Department for Buiness, Enterprise and Regulatory Reform (notifying Berr).
Finalise the proposals, including, where necessary, appropriate selection criteria ( choosing the selection criteria ) .
Consider whether to invite volunteers for redundancy (volunteers and early retirement).
Apply the selection criteria (choosing the selection criteria) and begin consultation with the individuals who are provisionally selected for redundancy as a result (consultation). Where fewer than 20 are to be made redundant, write to the employee explaining the background to their provisional selection and invite them to a meeting to discuss their proposed redundancy. For a sample letter, see the EEF Guide to Dispute Resolution:a pratical guide to the new law'. Discuss their selection and the possibility of alternative employment (considering alternative employment).
Finalise selection decisions and issue notices of termination (terminating employment).
Offer confrmed redundant employees an appeal and deal with any appeals (appeals).
During any notice period, continue efforts to redeploy and allow employees time off to find alternative work or to retrain (time off during notice period). Make redundancy payments (redundancy payments) .

The EEF Employment Guide is intended to provide general guidance only. It does not purport to be comprehensive or to give legal advice. Users should always seek specific legal advice before taking or refraining from any action. Information and documents on this website are prepared in accordance with the laws of England, Wales and Scotland. Users accessing from Northern Ireland should be aware that different laws and interpretations may be applicable to Northern Ireland.