If there are changes in the way your business operates, or a reduction in your levels of business, you may find that the jobs of some of your staff become redundant. When this happens, you need to make sure you act correctly.
It is recommended that you make provision for redundancy procedures in your employee contracts. However, even if you don't, there are specific procedures that you must follow.
The redundancy consultation process
Consultation must start in good time - when redundancy proposals are in their formative stage - and at least:
If you are making 20 or more employees redundant in one place of work within a 90-day period, in addition to consulting with individual employees, you must tell employee representatives or any trade union, if relevant, and the Department for Business, Enterprise and Regulatory Reform (BERR) by letter or using form HR1.
If your employees don't have any representatives, they can elect new ones specifically for the consultation.
If they don't belong to a union and choose not to elect representatives, you must give the relevant information straight to them.
If you have an information and consultation (I&C) agreement in place, you have a duty to inform and consult employees or their representatives on - among other things - changes to the workforce. This means that you may have to inform and consult on any proposed redundancies.
However, you do not have to inform and consult at the same time under both the redundancy and the I&C legislation - you can choose instead to "opt out" of your I&C agreement and consult under the redundancy legislation only.
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