Employer Redundancy Policy - Template, Sample Form Pro · UK-law
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REDUNDANCY POLICY OF:
________
DATED:
________
§ 1. This Policy
1.1 This policy is made on behalf of ________ of ________ (company registration number ________) ('we', 'our', 'us').
1.2 We recognise the importance of employment security. This policy provides a point of reference in respect of our redundancy procedures and is intended to ensure that any redundancies are dealt with consistently, fairly and in accordance with the Employment Rights Act 1996, the Equality Act 2010, the Trade Union and Labour Relations (Consolidation) Act 1992 and applicable guidance issued by the Advisory, Conciliation and Arbitration Service (Acas).
1.3 The person with overall responsibility for the operation of this policy is ________.
§ 2. Application and Status of this Policy
2.1 This policy applies to those engaged under a contract of employment (employees) only. It does not apply to agency workers, consultants, contractors or the genuinely self-employed.
2.2 This policy does not form part of any employee's contract of employment and may be amended, withdrawn or replaced by us at any time at our discretion.
2.3 Nothing in this policy is intended to confer any contractual right or to diminish any statutory right to which an employee is entitled.
§ 3. Minimising the Need for Compulsory Redundancies
3.1 We will always endeavour to avoid and minimise compulsory redundancies. Where a reduction in staff numbers must be considered, we shall consider all reasonable options available to us which may assist in avoiding or minimising a compulsory redundancy situation. Those options include:
________
§ 4. Compulsory Redundancies
4.1 Whilst it is always our preference to avoid compulsory redundancies, there may be circumstances where they become necessary and unavoidable. In accordance with section 139 of the Employment Rights Act 1996, the need for redundancy will arise where:
- there is an actual or intended closure of the whole of the business or of the business at a particular workplace; or
- there is a reduction (or anticipated reduction) in the requirement for employees to carry out work of a particular kind within the whole business or at a particular workplace.
§ 5. Stages of the Compulsory Redundancy Process
5.1 In general, the following stages shall be followed where, having exhausted the alternative options in § 3, compulsory redundancies are proposed:
- all affected employees and any appropriate representatives will be notified of the fact that compulsory redundancies are being proposed;
- where required, appropriate representatives will be part of a collective consultation process to discuss how to avoid or minimise redundancies and the procedures to be used to make selections;
- the selection process shall be undertaken, using fair and objective criteria, to identify a provisional selection pool of employees;
- individual (and where appropriate group) consultations will take place with those provisionally affected (deemed 'at risk' of redundancy);
- final selections will be confirmed, taking into account all information discussed in the above steps;
- the relevant employees will be formally notified in writing to confirm the particulars of their dismissal; and
- employees will be given the opportunity to appeal any compulsory redundancy decision made in relation to them.
§ 6. Collective Redundancies
6.1 Where we propose to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less, we will comply with our collective consultation obligations under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992. In such circumstances:
- consultation will begin in good time and at least 30 days before the first dismissal takes effect where 20 to 99 redundancies are proposed, and at least 45 days before where 100 or more redundancies are proposed;
- consultation will take place with appropriate representatives (recognised trade union representatives or, where there is no recognised union, elected employee representatives); and
- we will notify the Secretary of State (via the Redundancy Payments Service) using form HR1 within the same statutory timescales.
6.2 Where fewer than 20 redundancies are proposed within any 90-day period, the collective consultation duty does not apply, but we will nonetheless consult individually with affected employees in accordance with § 8.
§ 7. Redundancy Selection
7.1 The selection process for compulsory redundancies will always be undertaken in a fair, objective and consistent manner, and will not be based on any protected characteristic. We will consider the skills we require from employees to meet our business needs. Factors we may consider include:
________
7.2 The selection panel will ordinarily consist of: ________.
§ 8. Discrimination
8.1 During all stages of the redundancy procedure, we will not discriminate, whether directly or indirectly, victimise or harass any employee on the basis of any protected characteristic under the Equality Act 2010, namely an employee's:
- age;
- disability;
- gender reassignment;
- marriage or civil partnership;
- pregnancy or maternity;
- race;
- religion or belief;
- sex; or
- sexual orientation.
8.2 We will also not subject any employee to detriment by reason of their part-time or full-time working status, or their fixed-term or permanent status, in accordance with the Part-time Workers (Prevention of Less Favourable Treatment) Regulations 2000 and the Fixed-term Employees (Prevention of Less Favourable Treatment) Regulations 2002.
§ 9. Consultation with Individuals
9.1 All employees who may be affected by a compulsory redundancy decision will be notified in writing. Affected employees will be consulted individually and may also be consulted in small groups. Consultation will take place whilst the redundancy proposals are still in the formative stage and in good time before any proposed dismissal takes effect. The purpose of individual consultation is to:
- provide affected employees with sufficient information regarding the redundancy proposals;
- provide affected employees with the opportunity to comment on and challenge the basis for redundancy selection;
- provide affected employees with the opportunity to make suggestions as to how their redundancy might be avoided;
- provide affected employees with the opportunity to voice any concerns regarding the proposed redundancy; and
- provide affected employees with sufficient time in which to respond to the proposals.
9.2 Individual consultations will usually consist of a minimum of two separate meetings, and will take the following format:
________
9.3 We will give full and genuine consideration to all responses provided by affected employees during the individual consultation process before any final decision is taken.
§ 10. Suitable Alternative Employment
10.1 Where possible, we will seek to offer suitable alternative employment to any employee provisionally selected for redundancy. We will take reasonable steps to identify any suitable alternative vacancies which exist within the organisation at the relevant time. Any offer of suitable alternative employment will be considered in light of the nature of the work, the terms and conditions of the role, the employee's skills and abilities, and the location of the work.
10.3 An employee who is pregnant, on maternity, adoption or shared parental leave will, where a suitable alternative vacancy exists, be entitled to be offered that vacancy in priority over other affected employees in accordance with the Maternity and Parental Leave etc. Regulations 1999 (as amended).
10.4 Unreasonable Refusal of Suitable Alternative Employment
Where an employee unreasonably refuses an offer of suitable alternative employment, they may lose their entitlement to a statutory redundancy payment under section 141 of the Employment Rights Act 1996. Whether a refusal is unreasonable will be assessed by reference to the particular circumstances of the individual employee and the nature of the role offered.
10.5 Notice Periods
Where an employee is dismissed by reason of redundancy, they will be given the appropriate period of notice, or payment in lieu of notice, in accordance with the terms of their contract of employment and their statutory entitlement under section 86 of the Employment Rights Act 1996, whichever is the greater. Statutory minimum notice is one week for each complete year of continuous employment (after one month's service), up to a maximum of twelve weeks.
During the notice period, the employee will continue to receive their normal pay and contractual benefits in accordance with their contract of employment, save where payment in lieu of notice is made.
§ 11. Appeals
11.1 Upon receipt of any formal notice of dismissal by reason of redundancy, the affected employee will be provided with the opportunity to appeal the decision. Any such appeal should be made within ________ working days of receipt of the formal notice of dismissal. Where an employee wishes to appeal a redundancy decision they should:
- address the appeal to: ________; and
- submit the appeal in the following manner: ________.
11.2 Upon receipt of any appeal, a meeting will be scheduled within ________ working days to consider the appeal. The employee will be entitled to make representations at that meeting and may, in accordance with section 10 of the Employment Relations Act 1999, be accompanied by a fellow worker or a trade union representative.
11.3 The outcome of the appeal will be communicated to the employee in writing within ________ working days of the meeting taking place. The decision of the appeal will be final.
§ 12. Redundancy Pay
12.1 Statutory redundancy pay shall be available to employees who are dismissed by reason of redundancy and who have at least two years' continuous employment with us. Statutory redundancy pay is calculated in accordance with the statutory scheme under section 162 of the Employment Rights Act 1996, by reference to the employee's age, length of continuous service (capped at 20 years) and a week's pay (subject to the statutory maximum applicable at the relevant date).
12.2 Employees may additionally be entitled to contractual redundancy payments. Our policy in respect of contractual redundancy pay is as follows:
- eligible employees must have at least ________ minimum service; and
- the contractual payments shall be calculated in the following manner:
________
- any contractual payment shall be inclusive of (and not in addition to) any statutory redundancy pay owed.
12.4 Where it is not possible or practicable for employees to take accrued but untaken annual leave prior to termination, a payment in lieu of such untaken leave shall be made in accordance with the Working Time Regulations 1998 and the terms of the relevant contract of employment.
§ 13. Time Off, Assistance and Support
13.1 Where an employee with no less than two years' continuous service has been given notice of dismissal by reason of redundancy, they will be entitled, under section 52 of the Employment Rights Act 1996, to a reasonable amount of time off during working hours, before the end of their notice period, in order to:
- look for new work;
- attend job interviews; or
- make arrangements for training for future employment.
13.2 The pay for any such time off will be calculated by reference to the statutory requirements under section 53 of the Employment Rights Act 1996, by reference to the employee's normal hourly rate (broadly, a week's pay divided by the number of normal weekly working hours), and is subject to a statutory maximum of 40% of a week's pay.
13.3 For employees who are not eligible for the statutory time off above, we may at our discretion offer time off on a paid or unpaid basis in appropriate circumstances.
§ 14. Data Protection
14.1 Any personal data processed in connection with the redundancy procedure will be processed in accordance with the UK General Data Protection Regulation and the Data Protection Act 2018. Such data will be processed only for the purposes of administering the redundancy process, retained for no longer than is necessary, and kept secure and confidential.
§ 15. Governing Law
15.1 This policy and its operation shall be governed by and construed in accordance with the law of England and Wales.
15.2 This policy was adopted on ________ and will be reviewed periodically. It will next be reviewed on or before ________.
Signed for and on behalf of ________:
Signature: ________
Name: ________
Position: ________
Date: ________
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