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If redundancy is your only option – here are our top tips on doing the right thing

Posted on: 22nd Sep 2020 by: Demos HR Solutions

Demos HR Solutions blog - getting redundancy right
Demos HR Solutions - Getting redundancy right if its your only option once the coronavirus job retention scheme flexible furlough ends

The Coronavirus Job Retention Scheme (CJRS) is ending in just 6 weeks on 31st October 2020. Businesses that have suffered with loss of business due to the impact of Coronavirus may no longer be able to keep their employees. Whilst unfortunately redundancy may be the only option left for companies, it is essential that the correct processes are followed in order to avoid potentially costly tribunals. In addition to seeking advice from a qualified HR representative, below are our top tips on ensuring that you follow as fair a process as possible, to do the right thing by your staff.

 

LENGTH OF SERVICE

Don’t use ‘last in first out’ as the only method when considering which roles need to be made redundant. Pool together all employees that are doing the same job that could be at risk to ensure you’re being fair.

 

SELECTION MATRIX

List your core criteria to score against each employee in the pool. The following are just examples however there may be specific requirements of the role that you might want to include:

·       Skills, qualifications, and experience 

·       Standard of work / performance

·       Attendance record (which must not include absences relating to disability, pregnancy or maternity)

·       Disciplinary record

 

START FROM SCRATCH

If the selection matrix option is not a good fit for the role or your business, then you can ask the pool of employees to reapply and re-interview for the jobs that will be kept. The normal practice is to use either the selection matrix OR re-application of roles method.

 

COMMUNICATION IS KEY

If you are going down the redundancy route let your employees know as soon as possible. Internal communication is essential in showing your employees compassion and support during this economic crisis.

If you are making 20 or more employees redundant in one establishment within a 90 period, make sure you adhere to the Collective Consultation process. Click here to find out more on the ACAS website.

 

ALLOW FOR AN APPEALS OPPORTUNITY

Once the redundancies have been formally announced, ensure you provide an opportunity for employees to appeal the decision – it may highlight something you have missed but will give the employee assurance that you have done the right thing for all involved.

 

IS THERE ANOTHER OPTION?

If your business hasn’t yet applied for either of the government backed loans or funding to get back on track – could this be an option to assist cashflow allowing you to retain your staff?

If your business has fewer than 50 employees and less than £9,000,000 in annual turnover, the deadline for businesses to apply for a Coronavirus Business Interruption Loan Scheme (CBILS) loan is midnight on 30th September 2020.

For smaller state-backed business loans between £2,000 and £50,000 for businesses established before 1st March 2020 that have been affected by Coronavirus, the Bounce Back Loan Scheme (BBLS) may be suitable. The deadline to apply is 4th November 2020. Visit Gov.uk to find out more.

Funding via the government’s local Growth Hub Grant may be applicable to you if you’re looking to engage the services of professionals such as a HR Consultant, or to invest in technology to get your business back on track. You can find out more and contact your local Growth Hub here.

 

JOB RETENTION SCHEME BONUS

If you are able to keep your staff on once the CJRS ends on 31st October 2020, you could be eligible for the government’s CJRS Bonus whereby any employer that has made a genuine claim from the CJRS, will be able to claim a £1,000 one-off payment per previously-furloughed employee, if they are retained in employment until at least 31st January 2021.

 

DÊMOS HR SOLUTIONS – REDUNDANCY PACK

Should redundancy be your only option then Dêmos HR Solutions are here to help. Our Redundancy Pack is made bespoke to your specific requirements and branding, including process guidelines, letters, and our personal service where needed. If you would like a no obligation discussion to find out more about this one-off service, or about our retained services, please email debbie@demoshr.co.uk or call 07974 695 365.

Tags: redundancy, coronavirus job retention scheme, furlough,