Brachers Bitesize: Navigating redundancies and restructuring with confidence

In today’s rapidly evolving business landscape, understanding the intricacies of restructures and redundancies is crucial for employers and HR professionals. This webinar, presented by Employment Partner Colin Smith, provides valuable insights into these complex processes.

Key issues in redundancies

Collective vs. Non-Collective redundancies

Collective redundancies: Defined under Section 188 TULR(C)A 1992, collective redundancies involve proposals to dismiss 20 or more employees within a 90-day period at one establishment. This process requires extra steps, including consultation with appropriate representatives and government notification using form HR1.

Non-Collective redundancies: These involve fewer employees and do not require the same level of consultation or government notification. However, fair process and consultation are still essential to avoid legal risks.

Legal definitions of redundancy

Section 139 ERA 1996: Redundancy is defined as dismissals due to business closure, site closure, or reduced need for employees to perform specific work.

Section 195 TULR(C)A 1992: Redundancy dismissals are those not related to the individual concerned or for reasons unrelated to the employee.

Fair redundancy process

A fair redundancy process is critical to comply with employment law and avoid unfair dismissal claims. Key elements include:

• Fair warning: Employees should be given adequate notice about impending redundancies, allowing them to seek alternative employment or solutions. Typically, a minimum of 2-3 weeks is recommended.
• Fair consultation: Employers must consult with affected employees or their representatives about ways to avoid dismissals, reduce the number of dismissals, and mitigate the consequences. This includes discussing pools and selection criteria.
• Fair selection: Selection criteria must be fair, transparent, and objectively measurable. Employers should consider factors such as skills, abilities, and performance when devising scoring criteria.

Practical Examples

The webinar provided real-world scenarios to illustrate the application of redundancy laws:

• Example A: An employer proposes reducing production operatives from 30 to 11 and creating 5 new supervisor roles. For collective redundancy purposes, the proposed dismissals number is 19.
• Example B: An employer proposes reducing production operatives from 100 to 79 and creating 2 new supervisor roles. The proposed dismissals number is 21.

Key tips for employers

• Early planning: Understand the at-risk population, the S188/HR1 number, and the likely net outcome number. Determine if collective rules apply.
• Consultation: Engage in meaningful consultation with employees and their representatives at a formative stage before final decisions are made.
• Selection criteria: Keep selection criteria simple, focus on key skills, and design scoring systems to create sufficient gaps.

Conclusion

Navigating restructures and redundancies requires a thorough understanding of legal requirements and fair process principles. By following the guidelines discussed in the webinar, employers can ensure compliance and minimise legal risks. Stay informed and prepared for potential restructures and redundancies to safeguard your business and employees.

For more detailed insights, watch the full webinar recording below.

Download the webinar slides.

View the webinar in full below:
 

Further support

If you require any further guidance or support on the issues covered in this article, please get in touch with our Employment team today.

This content is correct at time of publication