As the faltering economy takes its toll on businesses, many are being forced to make significant changes to the way they operate – and that often means a reduction in the workforce.

If your company finds itself in the difficult position of having to make redundancies to remain competitive there are several implications that you need to be aware of.

‘If redundancies are inevitable, the way in which they are handled is crucial to ensure that employees who are leaving, and those staying, see that people have been treated fairly,’ said Adrian Rowley, HR consultant for regional business adviser Cooper Parry.

Under the Information and Consultation of Employees Regulations, organisations with more than 50 employees have a duty to consult with their workforce and it’s best to engage with employees at the earliest opportunity. Management best practice is to seek the views of affected employees through works councils and committees.

If the employer is considering making more than 20 employees redundant this may include the election of employee representatives.

How you propose to select employees for redundancy also requires careful consideration to ensure the selection criteria are objective, fair and non-discriminatory, otherwise an unfair dismissal claim could be lodged.

Employees are also entitled to be considered for alternative employment within the business, with a trial period in some cases. Employees may be entitled to a redundancy payment, and may receive a payment in lieu of notice rather than be asked to work out their notice period.

To help ease the transition, employers might also provide a consultancy service to help redundant employees on the receiving end of redundancy to identify their strengths and plan their next career move.

Source

Construction Manager