Do you and your managers know what knowledge and skills are required by each job role? If not, a training and skills matrix should be created with your HR Partner.
This approach allows the business to be proactive and agile, changing shape in accordance with the needs of the world and customer. Voluntary redundancy is often more transparent, leaders do not need to create a selection process, however, understanding the knowledge and skills required to future proof the business will assist with decision making when agreeing or not agreeing to applications for voluntary redundancy. It is often the best people who come forward; this is because they are confident that they can find other employment.
The employer will need to weigh up the skills required in the business and decide if the business is able to agree to the redundancy. It is not mandatory that the business agrees to a request to be made redundant; however, communication as to why an application is declined or accepted is crucial, especially when trying to keep the employee and other staff motivated and engaged. Maintaining a record of decisions made is important and this will ensure that an audit trail is created, and that any discrimination is identified.
Usually, senior or long-term employees are offered the opportunity for voluntary redundancy, although it is possible for other employees to apply if they want to be considered. Compulsory redundancy is based on a statutory payment established via a calculation set by the UK Government. To qualify for redundancy, employees need to have been employed for at least two years. Primarily, your process must remain fair at all times. That could lead to a damaging employment tribunal for your business.
But if you break down the tasks into understandable steps it makes things easier. So, it helps a great deal if you understand the current regulations on all of this. As you might expect, there are UK laws you need to remain compliant with. The most important compulsory redundancy terms are as follows:.
You have to let the government know of your plans. So, you should:. You need to keep notice periods in mind here, too, to apply the correct amount of time. These should be:. Again, you should view redundancy as a last resort. But before going ahead, remember you can do also try the following for employees.
For example, offering:. You can make a claim to furlough employees. But you may also want to consider some other options we highlight in the coronavirus section above. Such as making a claim for furlough to take the financial pressure of your business. There are two parts to this you need to know for compulsory redundancy payments. These are as follows:. Also, just to end this piece, you should think about the difference between voluntary vs compulsory redundancy payout.
Well, voluntary redundancies usually offer a better outcome for employees—in terms of the financial package. Making redundancies is stressful. Choosing voluntary redundancy This advice applies to England Print. Your employer might ask if anyone wants to take voluntary redundancy. Check the redundancy offer Ask your employer what the redundancy package will be. Claiming benefits You might be able to claim benefits like Universal Credit after taking voluntary redundancy - check what benefits you might be entitled to.
If you have a mortgage protection policy You should check your mortgage protection policy to see what it says about voluntary redundancy. Planning for after redundancy Read more about budgeting, training and finding a new job after redundancy. Once you volunteer to be made redundant Your employer will select the people to be made redundant from everyone who volunteered.
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