Consider alternatives to redundancy first – redundancy should be the last resort.
If you are an employee who has just been informed of possible redundancies, see our blog below on what to do when you get that call.
Is there a recognised trade union? If so, the employer should consult with trade union representatives.
If not, does the employer have employee representatives who have authority from those employees to receive information and to be consulted about the proposed dismissals on their behalf? If yes, the employer should consult with them.
If not, the employer will need to arrange election of employee representatives – there are statutory rules on how this is done.
If the number of employees in a particular function/team is being reduced, a selection exercise will be required.
Employees in the pool must be scored against selection criteria. Those with the lowest scores will be selected for redundancy.
It is for the employer to establish the selection criteria. They must be objective to avoid exposure to allegations of discrimination.
Employers must consult with individuals about their potential redundancy before final decisions are made.
Collective consultation is no substitute for individual consultation, so this needs to be done even in cases where collective consultation applies.
For further information on individual consultation, see our blog on this topic below.
Is there an enhanced redundancy package on offer?
If so, employers could make this subject to signing a settlement agreement.
If you are a senior executive at risk of redundancy, see our blog on top 10 tips for negotiating an exit below.