FAQs

1. How do I hold a fair redundancy procedure?

   If you need to make redundancies in your business, you have to follow a particular process, which can alter depending on how many individuals will be dismissed. In summary, you first have to warn the affected employees that there will likely be redundancies. Then you should undertake a process of consultation with each affected person. Your final decision should be communicated to the employee in writing, together with a right of appeal.

2. Do I have to consider alternative employment?

   As part of the process of consultation, you should consider if there are any other appropriate vacancies, which the affected employee could move to, instead of being made redundant. This can include a demoted post or a completely different role.

3. How do a decide on selection criteria?

   When choosing which employees from a larger pool are to be made redundant, you have to apply relevant criteria that will be used to select them. Such criteria should be fair and measurable, and based on objective factors, such as time-keeping, and adjusted to remove any discriminatory elements (i.e. disability related absence).

4. In a reorganisation, can I interview existing employees for a new role?

   In some circumstances where you are altering the structure of your business, it may be appropriate to use an internal interview process to help select the appropriate candidate for the role.

5. How much redundancy pay do I need to give?

   Statutory redundancy pay is based on age and length of service and subject to a cap on earnings, although more generous provisions can be provided for in the contract of employment.