what are the stages of redundancy

Basically, there are five main stages to consider during the redundancy process:

• Stage 1: Preparation. …
• Stage 2: Selection. …
• Stage 3: Individual Consultation. …
• Stage 4: Notice of Redundancy and Appeals. …
• Stage 5: The Termination Process.

Full Answer

How to manage redundancy?

You should always follow the correct procedures and more to the point adopt the correct process when managing each particular redundancy scenario. Basically, there are five main stages to consider during the redundancy process: Stage 1: Preparation. This includes assessing whether redundancy is actually necessary before starting the process.

How long does the redundancy process take?

If only one person is affected the redundancy process can take as little as 2 weeks. However when you have a more complicated case or multiple members of staff who are at risk of redundancy, it is likely to take 3-4 weeks or longer.

Is redundancy like the five stages of grief?

Making redundancies is not easy for employers, but for employees, redundancy may be comparable to the five stages of grief, according to a career expert who has been through the process in the past.

When do you have to give staff notice of redundancy?

Giving staff notice. During the redundancy process, you need to give an employee notice and agree on a leaving date once you have finished the redundancy consultations. When deciding upon a leaving date, you must legally give employees at least the statutory notice period.

What are the different types of redundancy?

There are 2 types of redundancy pay you could get: 'statutory' redundancy pay - what the law says you're entitled to. 'contractual' redundancy pay - extra money your contract says you can get on top of the statutory amount.

How long does it take to be made redundant?

A notice period is the amount of time between when your employer tells you that you'll be made redundant and your last working day. According to redundancy law, you're entitled to a minimum notice period of: 12 weeks' notice if you've been employed for 12 years or more.

What are the signs of being made redundant?

12 Signs Redundancy May be Lurking Around the CornerMonitor the mood in the office. ... Meetings behind closed doors. ... Extreme and pointless cost-cutting. ... Tightening up on expenses. ... Your workload decreases. ... Your productivity decreases. ... Your new title isn't an actual promotion. ... Be aware of the rumours.More items...

What is a redundancy process?

Redundancy is when you dismiss an employee because you no longer need anyone to do their job. This might be because your business is: changing what it does. doing things in a different way, for example using new machinery.

Do I pay tax on redundancy?

These are payments normally made as part of the employment, i.e. wages and salary. They are not the same as a statutory redundancy payment, which is made on termination to compensate the employee. The statutory redundancy payment itself is tax free, but other payments of earnings will not be.

Can you be sacked during redundancy?

So in theory - as long as you follow procedure properly and have the evidence to do so - if an employee commits gross misconduct, they can be sacked immediately, even during a notice period.

How do you know you are being pushed out of your job?

Telltale signs your company is trying to push you out: They're not giving you new assignments. You're being passed over for promotion. You're not being called into important meetings. They're taking work off your plate.

How much notice does an employer have to give for redundancy?

How long your notice period should beTime with your employerMinimum notice1 month to 2 years1 week2 years or more1 week for each full year, up to a maximum of 12 weeks For example, if you've worked for your employer for 5 years and 3 months you get 5 weeks' notice

How do you know if your job is trying to get rid of you?

10 Signs Your Boss Wants You to QuitYou don't get new, different or challenging assignments anymore.You don't receive support for your professional growth.Your boss avoids you.Your daily tasks are micromanaged.You're excluded from meetings and conversations.Your benefits or job title changed.More items...

How long can redundancy consultation last?

There's no time limit for how long the period of consultation should be, but the minimum is: 20 to 99 redundancies - the consultation must start at least 30 days before any dismissals take effect. 100 or more redundancies - the consultation must start at least 45 days before any dismissals take effect.

How long are you at risk for redundancy?

Some firms can keep their employees 'at risk' of redundancy for up to 12 months while they try to find a position for them elsewhere in the company. Normally if your employer makes you 'at risk' it is a good sign because it means they are looking for a solution and do not want to make you redundant.

Can I get another job while on redundancy notice?

If you get another job during your redundancy notice period, you can ask your employer to change your finishing date so you can leave early. If they agree (and they probably will because it saves them money), you'll still be entitled to your redundancy pay.

What is the 4 week rule?

What is the four-week rule? The four-week rule is a provision in the Employment Rights Act 1996 which sets out the circumstances in which the renewal of a contract or re-engagement following redundancy may invalidate entitlement to a redundancy payment.

Can you work while waiting for redundancy?

A Typically there are no restrictions on you taking up employment after you are made redundant. The trouble is that some employers often stipulate that you do not take up any employment for, say, three months after you accept the severance package.

Can you start a new job while waiting for redundancy?

Starting a new job before your notice expires If you are offered a job at a new firm, to start before your notice expires, then try and negotiate with your employer for early release without losing your redundancy pay. Employers are often happy to make such arrangements.

Is it easy to make someone redundant?

Making someone redundant is one of the hardest things you'll ever have to do – and you need to get it absolutely right, for the sake of your team and of your small business. In this post, we'll show you how to run a redundancy process that's both in line with the law and fair on your team.

Can you be made redundant if your job still exists?

Although there are many reasons for legitimate redundancy, it’s illegal for you to be made redundant whilst your job still exists. Therefore, if you think someone else has taken your job after you’ve been made redundant, seek professional advice immediately.

What happens after redundancy consultation period?

What happens after the consultation? You receive redundancy notice. You must be given at least the statutory notice period – between one and 12 weeks, depending on how long you’ve been in the job. However, if you’re taking ‘gardening leave’ you’ll normally leave work as soon as you get your redundancy notice.

Do I need to tell HMRC if I am made redundant?

Contact HMRC before filling in the form, and they’ll tell you what other information you need to provide. Do this via the GOV.UK website or call 0300 200 3300. Send this to HMRC with parts 2 and 3 of your P45.

What happens in a redundancy consultation?

During the redundancy consultation period employees will have an opportunity to discuss all aspects of the redundancy and raise any queries they may have (e.g. about redundancy pay). It is also a chance for employers to avoid making redundancies and consider alternative options to dismissal.

How long should a redundancy consultation take?

There’s no time limit for how long the period of consultation should be, but the minimum is: 20 to 99 redundancies – the consultation must start at least 30 days before any dismissals take effect.

What is redundancy structure?

The redundancy of a structure refers to the extent of degradation the structure can suffer without losing some specified elements of its functionality. … Several definitions of redundancy have been proposed, for example, in terms of the collapse load, the number of plastic hinges, and the probability of system failure.

What is homogeneous redundancy?

Homogenous redundancy is the use of multiple elements of a single type (e.g., use of multiple independent strands to compose a rope).

How long does it take to make a redundancy?

In straightforward cases, you might find that you can complete this process in around 2 weeks. More complex cases, where you have a larger pool of staff, can take 3-4 weeks or potentially longer.

How long do I have to wait until I can recruit again after making a redundancy?

This is usually around 3-6 months, but is largely dependent on individual circumstances.

How long do you have to notify the Secretary of State of a redundancy?

Notice must be given at least 30 days before the first dismissal for 20 – 99 proposed redundancy dismissals and at least 45 days before the first dismissal for 100 or more proposed redundancy dismissals. Failure to do this is a criminal offence.

How to contact Citrushr?

Get in touch on [email protected] or give us a call on 0333 014 3888 to find out more about how we can help your business with friendly, expert HR support.

What do employers need to know about redundancy?

Redundancy: what employers need to know. Going through a redundancy process can be stressful, and doing so without following the law could lead to expensive penalties . Thorough consultation with all those at risk, and continuing to look for alternative options to redundancy throughout, are essential steps to getting things right.

Why do redundancies happen?

In our experience, redundancies in small businesses usually happen for two reasons: 1. Cost saving.

What to do after a group meeting?

Following the group meeting, you’ll need to hold individual meetings with everyone in your selected ‘pool’ to get their initial reactions, ask for comments on the selection criteria, seek volunteers to leave on redundancy terms, and provide them with an illustration of their redundancy entitlements.

What are the stages of grief?

Ben Roberts is an employment expert at Renovo, a specialist provider of career transition support, says that understanding the five stages of grief can help people through the redundancy process. Importantly, it can also help if employers know about it too. “There is a change curve model for grief, called Kubler-Ross, which comprises denial, anger, bargaining, depression and acceptance. I believe that understanding a likely emotional pattern of losing a job can help people accept their situation and move ahead more quickly.

How can an employer help employees?

How an employer can help: Employers can best support employees at this time by managing their expectations whilst reiterating that the redundancy is not personal – it is their role being made redundant, not them. Advise them on how they can use their skill and experience once they have moved on. Explain how you can help support them with what they need including training or specialist outplacement services to move on effectively into a new role.

How can employers help with grief?

People will be unsure of what comes next, and so the more employers can support them practically as well as emotionally and communicate how their unique knowledge and skills are an essential part of moving onto the next stage of their career , the likelier they are to move on to the next stage.

What is stage 3 in a job?

Stage 3 – Bargaining. What the employee may feel: Bargaining is used as a delay tactic to put off the change or try to find a solution that is generally unrealistic; this might include promising unrealistic changes, compromises or output, or even making offers of extreme lifestyle change.

What does acceptance mean in a job?

What the employee may feel: Acceptance is when the individual accepts the situation is real and that they will need to take action. This does not necessarily mean that are OK or happy with the situation they are in.

Is the IR35 amendment defeated?

IR35 amendment defeated. All too frequently, big name companies are making redundancies due to the impact of COVID-19 and it’s likely to continue over the coming months. Making redundancies is not easy for employers, but for employees, redundancy may be comparable to the five stages of grief, according to a career expert who has been through ...

Why do you follow redundancy procedures?

Why follow redundancy procedure? This is a legal requirement and shows that you have done all you can to avoid making staff redundant. This demonstrates to staff that you are taking all the appropriate steps, and are doing it for the right reasons. It also mitigates the risk of a successful tribunal claim.

How many meetings should you have to conduct for redundancy?

If you only have one member of staff you may only need to conduct one or two meetings.

How to make a redundancy?

1- Establish the business reason for redundancy. Establish why there is a potential need to make positions in your business redundant. These should be business related reasons that explain why the ‘role’ is no longer required. Always refer to the ‘role’ not the ‘person’.

Is redundancy a problem?

Employers are often tempted to take short cuts or simply skip parts of the process; running high risks of becoming involved in litigation claims. It is not just a question of treating outward-bound employees fairly and lawfully ; there is also the question of the effect a messy redundancy or dismissal has on the rest of your staff. We advise on how to handle the processes properly and professionally.

What is redundancy?

With a true redundancy, an employer must show that a role no longer exists. This will normally occur when an employee is no longer needed because:

Mitigating the need for redundancies

You must have a good business reason for making employees redundant. You should also take steps to avoid making anyone compulsorily redundant.

Identifying employees for redundancy

After attempting to avoid compulsory redundancies, and no alternative recourse is available, you will need to identify those people who may be suitable for redundancy.

Redundancy process consultations

Selected employees at risk of redundancy must be notified in writing. Explain that they are being considered. If they are chosen as eligible for redundancy, then confirm this with them. You should also explain how the consultation process will work.

Giving notice of redundancy

When the consultation stage is complete and the final selection is decided, you must:

Redundancy appeal process

Your redundancy process should include an appeals procedure. If an employee does appeal, make sure this is dealt with promptly, fairly and transparently.

Collective redundancies

Collective redundancies occur when making more than 20 employees redundant within a 90-day period. Specific rules apply in this type of situation.

What is the 4th stage of a dismissal?

Stage 4: Notice of Redundancy and Appeals. Always remember to write to your employee to inform them of the dismissal and allow them the right of appeal.

What are the stages of redundancy?

Basically, there are five main stages to consider during the redundancy process: Stage 1: Preparation.

What is stage 3 in a job?

Stage 3: Individual Consultation. There are legal time frames regarding consultation depending upon the number of people being made redundant. In any case, it is important to explain why an individual has been selected and to consider alternative employment in the company.

What is the stage 3 of selection criteria?

For example, disciplinary records, experience, capability, relevant skills and competence. Stage 3: Individual Consultation.

Is redundancy a legal matter?

Apart from the overall unpleasantness of making people redundant, it is a legal minefield for employers. Recent case law and legislation have added to this complexity. If you want to keep costs to a minimum and avoid Tribunal claims then managing redundancy in the right way is key. You should always follow the correct procedures and more to the point adopt the correct process when managing each particular redundancy scenario.

Is it good practice to ensure regular and open communication?

Having determined the need for redundancies and selected the criteria, it is good practice to ensure regular and open communication. This will help you show that you’ve conducted the process in a fair and equitable manner in accordance with required legislation.