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We appreciate that managing an employee redundancy can be a highly sensitive and stressful experience for any employer. The circumstances are often difficult and the risk of claims of unfair dismissal by disgruntled former employees is never far away.

A fair dismissal by reason of redundancy is based on core principles of fair warning, fair consultation, fair selection and consideration of alternative employment to avoid having to let staff go.

To get the legal advice and support you need for your business’s redundancy process, contact us on 01619305117, email us at employmentteam@gorvins.com or fill in our online enquiry form.

Gorvins Approach to Managing Employee Redundancies

The employment solicitors at Gorvins can provide you with the necessary help and advice to guide you through any redundancy process, reducing stress and minimising any related risk.

We provide you with a tailor-made suite of written guidance notes and template correspondence to limit the amount of work you have to do yourself. Additionally, we also ensure that the redundancy process you carry out is fair and by the book.

We assist from the outset of any redundancy process and offer guidance at every step of the way, from the selection and consultation process to voluntary redundancies and exploring alternative suitable work for affected employees.

We can also advise on statutory redundancy payments, enhanced severance packages, settlement agreements and if needed, collective consultation with employee representatives.

If you’re making 20 employees or more redundant, there are specific statutory rules which all employers must follow relating to consultation with staff representatives! A failure to follow these rules can result in a strict liability penalty for any employer of up to 90 days’ pay for each affected employee.

We can help you through every step of this detailed procedure.

How Can Gorvins Help?

We pride ourselves on taking the stress out of the redundancy process for employers, minimising the risk of any employment tribunal claims.

To get industry-leading advice and support for your business’s redundancy process, call 0161 930 5117, e-mail employmentbteam@gorvins.com or fill in our online enquiry form.

Frequently Asked Questions

What are the legal requirements for making redundancies?

Your business can make redundancies only where there is a legitimate business need to make them. This includes circumstances where:

  • Their work is no longer needed due to, for instance, reduced demand
  • New processes have been introduced that mean the employee’s job is no longer necessary
  • An employee’s work is being carried out by others, meaning their role is no longer required
  • The business is closing
  • The business is relocating

What rules does my business need to follow when making more than 20 redundancies?

When making more than 20 redundancies, there are specific statutory rules that you’ll need to abide by. Failure to do so could result in a strict liability penalty of up to 90 days’ pay for each affected employee.

To be specific, you’ll need to run what’s called a consultation period with your employees for at least 30 days before you can make any redundancies. This consultation period has many facets and rules that a good employment lawyer will be able to help you navigate.

Are employees entitled to a trial period when offered suitable alternative employment as an alternative to redundancy?

Any person offered suitable alternative employment is entitled to a statutory trial period of 4 calendar weeks.

If either party terminates the employment during the trial period, then the dismissal is deemed to be by reason of redundancy.

But, if the employee unreasonably resigns and the alternative employment was suitable the employee ceases to be entitled to a redundancy payment.

The question as to what is suitable alternative employment and whether an employee’s decision to refuse it is unreasonable is extremely fact sensitive. Ealy advice from a good employment lawyer is essential in this complex area of employment law.

If an employee claims unfair dismissal after being made redundant will I have to pay any additional compensation on top of the redundancy payment I have already paid?

Yes, potentially, if the claim is successful. Unfair dismissal awards are split into 2 distinct elements: (a) a basic award, and (b) a compensatory award.

The basic award is calculated in the same way as a statutory redundancy payment and is dependent upon an employee’s salary, age and length of service. If a redundancy payment has already been made this will be deducted from the basic award, normally reducing it to nil.

However, the employee will still be entitled to a compensatory award to compensate them for their losses for such period of time as the Employment Tribunal deems reasonable. The size of this award will be affected by such things as the employee’s pre-dismissal salary, how long it takes the employee to obtain alternative employment and whether there are any ongoing losses.

An employee’s compensatory award can often be reduced to a minimal value if an employer can establish that the employee has failed to mitigate their losses. The onus is on the employer to establish this, and the services of a good employment lawyer can be invaluable in enabling an employer to produce the right quality of evidence to attack this aspect of an employee’s claim.

Meet the Employment team

  • David Rogers

    Partner & Head of Employment
    Employment

    View profile
  • Amanda Isherwood

    Associate Solicitor
    Employment

    View profile

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