Employer Redundancy Policy - Template, Sample Form

REDUNDANCY POLICY OF:

________

DATED:

________

This Policy

This policy is made on behalf of: ________ ('we', 'our', 'us').

We understand the importance of employment security. We believe that it will assist staff to have a point of reference in respect of our redundancy processes. This policy document will also assist in ensuring that any redundancies made by us are dealt with consistently, fairly and in accordance with all legal requirements.

Application and Status of this Policy

This policy applies to those with employee status only (employees).

This policy does not form part of any employee's contract of employment and may therefore be amended by us at any time.

Minimising the Need for Compulsory Redundancies

We will always endeavour to avoid and minimise the situation of compulsory redundancies. Where a reduction in staff numbers becomes a factor which must be considered by us, we shall always consider all options available to us which may assist in avoiding or minimising a compulsory redundancy situation. Those options include:

________

Compulsory Redundancies

Whilst it is always our preference to avoid any compulsory redundancies, there may unfortunately be circumstances where this becomes necessary and unavoidable. The need for redundancy will arise where:

- there is an actual or intended closure of the whole business or the business at a particular workplace; or

- there is a reduction (or anticipated reduction) in the need for employees to carry out work of a particular kind within the whole business or at a particular workplace.

Stages of the Compulsory Redundancy Process

In general, the following stages shall be followed where, having exhausted the above alternative options, compulsory redundancies are proposed by us:

- all affected employees and any appropriate representatives will be notified of the fact that compulsory redundancies are going to be proposed by us;

- where required, appropriate representatives will be part of a collective consultation process to discuss how to minimise/avoid redundancies and the procedures which shall be used to make selections;

- the selection process shall be undertaken, using appropriate and fair criteria, to make a provisional selection pool of employees for redundancy;

- individual and group consultations will take place with those who will provisionally be affected (or are deemed 'at risk' of redundancy) after the selection process has taken place;

- final selections will be confirmed and finalised, taking into account all information which has been discussed in the above steps;

- once the final decision is then made regarding the selection, the relevant employees will be formally notified in writing to confirm the particulars of their dismissal;

- employees will be given the opportunity to appeal any compulsory redundancy decision made in relation to them.

Collective Redundancies

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Redundancy Selection

The selection process for compulsory redundancies will always be undertaken in a fair and consistent manner. We will consider the relevant skills we require from employees in order to meet our business needs. Factors we may consider include:

________

The selection panel will ordinarily consist of: ________.

Discrimination

During any and all aspects of the redundancy procedure, we will never discriminate against an employee, whether directly or indirectly on the basis of an employee's:

- age;

- disability;

- gender reassignment;

- marital status;

- civil partnership status;

- pregnancy;

- maternity;

- race;

- religion;

- beliefs;

- sex;

- sexual orientation;

- part-time or full-time working status; or

- fixed-term or permanent status as an employee.

Consultation with Individuals

All employees who may be affected by a compulsory redundancy decision in any manner will be notified in writing. Affected employees will be consulted individually and may also be consulted in small groups. This process will take place whilst redundancy proposals are still in the formative stage and in good time before the proposed dismissals shall take effect. The main purpose of an individual consultation is to:

- provide affected employees with sufficient information regarding the redundancy proposals;

- provide affected employees with the opportunity to comment upon and raise any challenge to the basis for redundancy selection;

- provide affected employees with the opportunity to make suggestions in respect of how their redundancy might be avoided;

- provide affected employees with the opportunity to voice any concerns they have regarding the proposed redundancy; and

- provide affected employees with sufficient time in which to make their responses to the redundancy proposals.

Individual consultations will usually consist of a minimum of two separate meetings, and will take the following formats:

________

The employer will ensure that full consideration is given to all responses provided by affected employees during the individual consultation process.

Suitable Alternative Employment

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Where an employee is offered and accepts a suitable alternative role, they will be entitled to a trial period of four weeks (or such longer period as may be agreed in writing) in order to assess the suitability of the new role. Where the trial period is unsuccessful for reasons connected with the suitability of the role, the employee's right to a redundancy payment will be preserved.

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. 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.

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, whichever is the greater. Statutory notice is one week for each complete year of continuous employment, up to a maximum of twelve weeks.

During the notice period, the employee will continue to receive their normal pay and benefits in accordance with their contract of employment, save where payment in lieu of notice is made.

Appeals

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 3 working days of receipt of a formal notice of dismissal. Where an employee wishes to appeal a redundancy decision they should:

- make the appeal out to: ________.

- make the appeal out in the following way: ________.

Upon our receipt of any appeal, a meeting will be scheduled within 5 working days to consider the appeal. The employee will be entitled to make representations at that meeting. The employee may be accompanied by an appropriate representative.

The outcome of the appeal will be communicated to the employee in writing within 3 working days of the meeting taking place.

Redundancy Pay

Statutory redundancy pay shall be available to employees who have been made redundant and who have at least 2 years of continuous employment with us. Statutory redundancy pay shall be calculated in accordance with the statutory scheme.

Employees may 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:

________

- the contractual payments shall be inclusive of any statutory redundancy pay owed.

Where an employee has been made redundant, their notice of redundancy shall include full details of their redundancy payment and how this has been calculated. Statutory redundancy pay of up to £30,000 does not attract liability for income tax and National Insurance.

In circumstances where it is not possible or practicable for employees to take any accrued annual leave prior to termination of the contract, payments in respect of untaken annual leave shall be paid in accordance with the terms of the relevant contract of employment.

Assistance and Support

Where an employee of no less than two years of continuous service has been given a notice of dismissal by reason of redundancy, they will be entitled to a reasonable amount of time off whilst they remain within employment with us in order to:

- look for new work;

- attend job interviews; or

- make arrangements for training for future employment.

The pay for any such time off will be calculated in reference to the statutory requirements. This is calculated in reference to the employee's usual hourly rate (which broadly speaking is the employee's week of pay divided by the number of usual working hours a week) for the period of absence and is subject to a maximum of 40% of a week's pay.

For employees who are not eligible for the above time off, we may exercise our discretion to offer time off on either a paid or unpaid basis (in exceptional circumstances).