These include consulting before making decisions, following the three step dismissal process and considering alternative employment opportunities. Extra consultation rules apply if more than 20 employees may be made redundant. Falling short of the rules means risking a finding of unfair dismissal or an award of additional compensation for employees. This was illustrated recently by the case of Hardy v Tourism South East where an employer tried to avoid the extra consultation rules by arguing that as it expected to redeploy some staff, less than 20 employees would be redundant and that these rules would not apply. The Employment Appeal Tribunal thought otherwise.

This employer may have been well-meaning in the assumption that being able to offer alternative positions was to the employee's advantage, but it ignored a major point about employment a lack of information breeds uncertainty and rumour which leads to loss of morale, not only among those directly affected but also the rest of the workforce. Distress in a redundancy situation is magnified by silence.

Our experience therefore is that it is to a company's advantage to be prepared to follow good practice whenever there is a potential redundancy situation. In some organisations it will be appropriate to have this as a written policy.

Good practice includes:

• Thinking ahead to try and avoid redundancies, for example by applying a standstill on recruitment
• If there is a potential redundancy situation, knowing who will be consulted and how, including election of representatives, if appropriate
• Knowing how and when information should be disclosed, including a timetable
• Keeping important information, such as job descriptions or skills charts up to date
• Considering special cases, for example, mobile employees, or staff on maternity leave
• Making arrangements for keeping absent employees informed
• Having details of the redundancy terms which would apply
• Making sure that affected staff will be told before others.
• Offering job hunting assistance to those facing redundancy
• Making sure that affected employees can be considered for alternative employment opportunities up to the date of dismissal

Whether you have an immediate redundancy situation or would like to prepare your organisation for the future, why not call Mark Shortell on 01743 245 564 or email mark@hradvantage.co.uk

July/August 2005