NEWS EXTRA
employees undertaking a certain role that is no longer required are dismissed, selection is less of an issue as that unique individual or all of the team will be selected – there is no need to select who will be saved from redundancy at the expense of someone else. However, where teams are being reduced in size or employees’ skills are interchangeable, businesses must take care to ensure they fairly select employees for dismissal. The first step is usually to identify a pool of employees at risk of redundancy. For example, local branches of a merchant have their own delivery drivers and counter staff. It decides to make deliveries from a series of regional hubs, all of the local drivers would be placed in the pool of employees at risk of redundancy. The counter staff, however, would not be placed in the ‘at risk’ pool of employees as their jobs are different and is still required to the same degree.
The business must have a fair and reasonable way to select which half of the sales people are retained and which are redundant. In order to be reasonable, the redundancy selection criteria should be objective and capable of independent verification. This means that the criteria should be measurable, rather than just being based on personal opinion. Potentially fair selection criteria include: • Measurable performance such as accident rate; • Relevant qualifications for the job; • Recent appraisal scores; • Length of service; • Attendance records; and • Disciplinary records.
Selection on purely subjective grounds is likely to be unfair. This is to ensure that an employee is not selected by a manager due to personal animosity. It also helps avoid unfair reasons or discriminatory reasons such as the employee being pregnant, old, disabled or a whistle-blower creeping into the process. Examples of criteria that are too vague, imprecise or subjective include whether an employee is liked by their colleagues and whether they are perceived as a hard worker.
Finally, the amount employees
in the ‘at risk’ group are each paid is not generally a fair selection criterion in the eyes of the law. Once an employee had been provisionally selected for redundancy, the employer must consider if there are any other jobs that the employee could do to avoid being made redundant. This can include reasonable alternatives available in group companies also. Trials in roles can be undertaken by employees to see if a role is suitable. If a suitable role is unreasonably refused by an employee, they can lose their right to a redundancy payment.
If redundancy cannot be avoided and an employee is dismissed, it is important to remember to offer the employee a right of appeal.
If putting employees that are currently on maternity leave at risk of redundancy employers must remember that they have a right to be saved from redundancy first by being given alternative employment before any employees at risk who are not on maternity leave.
Cost to the employer? An employee facing redundancy should be given notice of their dismissal (whether it is worked or paid in lieu) as per their contract of employment. Alternatively, they must be paid the statutory minimum where there is no contract, or whether the contract is silent or does not meet the statutory minimum notice periods required.
“
is unfair, they can also issue proceedings for unfair dismissal, seeking compensation to cover salary losses up to a maximum of a year’s gross pay or £83,682 whichever is lower. If an employer is making large-scale redundancies and fails to collectively consult with trade unions or elected bodies properly, employees can also make a claim for up to 90 days’ pay for a failure to consult, referred to as a “protective award”.
An employee facing redundancy should be given notice of their dismissal as per their contract of employment
”
Employees with two years’ service are also entitled to a redundancy payment. There are statutory minimum redundancy payments that must be paid but sometimes employee’s contracts stipulate a higher rate of redundancy pay. Statutory redundancy payments are calculated by considering the employee’s age, the number of each full years of service and their weekly pay up to a maximum of £508 per week.
If a redundancy payment is not paid where it’s due, an employee can issue proceedings in the Employment Tribunal. And if the employee believes their dismissal
Employers need to remember that the law allows employees reasonable time off during working hours to look for a new job or make arrangements for training for future opportunities. This applies to those who have been given notice of redundancy and who have worked for the company for at least two continuous years by the date their notice expires.
Conclusion
Clearly, it can, therefore, be very costly if mistakes are made when making redundancies and employers should seek independent advice. Any redundancy process is going to be traumatic. And it’s important for an employer to realise the redundancy process doesn’t finish when a decision has been made. Employees made redundant may need support in searching for alternative work, and those who have been offered alternative work within the organisation may need training and support to ensure a smooth transition. BMJ
For more information or legal advice, visit: www.eversheds-
sutherland.com
SEE THE KORNICHE
FITTED IN
MINUTES
THE BEST ALL ALUMINIUM LANTERN ROOF FOR GLAZED EXTENSIONS
INSTALLED BY SKILLBUILDERS ROGER BISBY
November 2018
www.buildersmerchantsjournal.net January 2019
www.buildersmerchantsjournal.net
9
www.korniche.co.uk
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64
