5 redundancy mistakes that must be avoided at all costs

Redundancy is a nightmare for both staff and employers, but unfortunately, sometimes there is no alternative.  

Speaking to HR Grapevine, Karen Bexley, Partner and Head of Employment Law at MLP Law, shares the five mistakes that must be avoided at all costs during the redundancy process.

1. Make a plan

Bexley says: “The most important aspect to remember is that putting together a proper plan can save a lot of time and money, and will help to ensure that no issues arise further down the line. One of the most common mistakes is rushing through the redundancy process and not conducting appropriate consultation sessions with employees to inform them of possible redundancies. Employees must be made aware of the risks at the earliest instance before any final decisions are made, and the reasoning behind such proposals."

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2. Train your managers

Bexley argues on the importance of having your managers know what they are doing. She explains: "It can regularly be the case that companies have failed to train managers properly on the redundancy process, and so they may not fully understand how the consultation stage works. This is another common mistake that must be avoided - all managers should be trained before conducting the process so that they know what is involved and can implement consultation sessions effectively and appropriately."

3. Consider the reason firing

“Making an employee’s role redundant due to performance issues is another mistake that is sometimes made," Bexley says. "Employees who are dismissed under these circumstances may be able to bring a claim of unfair dismissal against the company as this should be handled under disciplinary procedures. Performance concerns are often interrelated as if the employee was performing in that role then it is unlikely the company would want them to leave. However it’s important to ensure that performance issues are not be dealt with be a sham redundancy process."

4. Be realistic

Close to making the plan is the importance of making it realistic. Bexley explains: “It is also vital that a realistic, and flexible, time frame is put in place. If the deadline is not realistic, it is likely that the process will be rushed in order to meet the expected conclusion date, and this could mean falling foul of the consultation requirements. Again, this highlights the importance of taking the time to carefully plan each stage so that decisions can be made flexibly and comfortably."

5. Use the word 'proposed'

Bexley argues: “During the consultation stage, the word ‘proposed’ should be used as often as possible. This helps to show that the final decision has not yet been made and that the process is still in the proposal phase. And until the final decision has been made, any information that is included in emails and documents should not indicate that final decisions have been made both over the roles and the individuals who will be made redundant. It’s important to be careful about the information that is issued as written documents, as these may be dis-closable as part of a tribunal claim or request under the Data Protection Act.”

Credit: http://www.hrgrapevine.com/markets/hr/article/2015-10-23-the-5-redundancy-mistakes-that-must-be-avoided-at-all-costs