As an HR consultant, I’ve frequently managed appeals on behalf of employers against redundancy decisions, and more often than not, I’ve upheld the appeal. This has led to either reinstatement or costly settlement agreements with the dismissed employee.
In this blog, I’ll explore common pitfalls to avoid when making redundancies, ensuring a fair and legally compliant process.
Pitfall 1: Making the Decision Before the Decision is Made
When initiating a redundancy process, it’s essential to remember that it’s still a proposal, and no decision has been made. The role(s) has been identified as “at risk,” and a fair consultation process must be carried out. Avoid using language that suggests the decision has already been made, such as “I’m making you redundant” instead of “your role is at risk of redundancy.” Refrain from removing responsibilities or treating the employee as if they’ve already left the company. Remember, the employee is still employed, and their job and responsibilities continue as normal until the final decision is made.
Pitfall 2: Using Redundancy to Get Rid of a Problem Employee
Some employers may attempt to use redundancy as a means to avoid a drawn-out capability process for underperforming employees. This is not an appropriate use of redundancy and can lead to issues. A strong business case is required, and the employer must ensure that other employees are not caught up in the redundancy simply as a means of dismissal. Consider alternative options, such as a protected conversation with the employee to reach a settlement agreement or following the capability process, which can be highly effective.
Pitfall 3: Lack of Skills
In smaller businesses, the business owner may commence a redundancy process without fully understanding the requirements. In larger organisations, the task is often delegated to line managers who may not have the necessary expertise. Inadvertent mistakes can prove costly in these situations. To avoid this, businesses should either provide training to their line managers or work with an HR consultant to ensure they are following the correct procedures step-by-step.
Pitfall 4: Lack of Ownership
Redundancy is a difficult and emotional process, not just for the employees at risk, but for the employer as well. Failing to own the process can make the situation worse. Avoid reading from a script or trying to absolve oneself of responsibility by saying “it’s not my decision, it’s the company’s.” Instead, own the decision while showing empathy and understanding, while still following the correct procedures. This can make a significant difference in how the employee perceives the process. I’ve seen instances where employees who were made redundant shook the employer’s hand at the end, feeling that the process was handled properly despite the difficult circumstances.
Conclusion
Redundancy is a delicate and complex process that requires careful planning and execution. By being mindful of the common pitfalls – making premature decisions, using redundancy to dismiss problem employees, lacking the necessary skills and expertise, or failing to own the process with empathy – employers can ensure a fair and legally compliant redundancy procedure.
Investing time and resources to get the redundancy process right, whether through training, consulting with HR experts, or taking a thoughtful and compassionate approach, can minimise the risks of appeals, costly settlements, and damaged employer-employee relationships. Redundancy should always be a last resort, and when it must be done, it should be handled with the utmost care and professionalism.
If you need any support with a redundancy process: