Redundancy is when you dismiss an employee because you no longer need anyone to do their job. This might be because your business is:
- changing what it does,
- doing things in a different way, for example using new machinery, or
- changing location or closing down, due to COVID disruption for example.
If you have been impacted by coronavirus lockdown, you were able to get funding to continue to pay your employees instead of making them redundant. This is known as furloughing. The current furlough scheme ends 30 September 2021.
For a redundancy to be genuine, you must demonstrate that the employee’s job will no longer exist. Redundancies can be compulsory or non-compulsory. If you do have to make redundancies you can get help from Jobcentre Plus.
Employees have certain rights and may be entitled to redundancy pay if they are made redundant.
All employees under notice of redundancy have the right to:
- reasonable time off to look for a new job or arrange training.
- not be unfairly selected for redundancy.
You should always take steps to avoid redundancies before dismissing staff.
Employers must try to find suitable alternative employment within the organisation for employees they have made redundant.
Employees can try out an alternative role for four weeks (or more if agreed in writing) without giving up their right to redundancy pay.
We can help
If you are faced with making choices about staff retention as the furlough scheme draws to an end, please call us at MJB Avanti | (08000) 388 799 We can help you consider your options.
Source: Informanagement