Where an employer is proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less, they must follow a collective information and
redundancy consultation process in addition to standard redundancy procedures. Failure to do so can lead to additional ‘protective awards’.
Employers must also put the reasons for their proposals in writing, detail the numbers and descriptions of employees they are proposing to make redundant at each workplace and, the proposed method of employee selection and conducting the dismissals including the timeframe of the process and any redundancy payments. In the case of special circumstances which prevent the employer from reasonably complying with these requirements, they are required to take all other reasonably practicable steps.
Do’s
1. Secure appropriate representatives prior to the consultation
This is a legal requirement. The consultation process should also seek to reach agreement about ways to avoid the dismissals, reduce the numbers of employees to be dismissed and mitigate the consequences of the dismissals.
2. Ensure detailed and clearly communicated information
Take care when drafting information communications to representatives and to make sure that you use Plain English where possible. An employer is at risk from an
employment tribunal claim for a poor consultation process unless information is given in such a way that the reader is able to understand the proposals properly.
3. Consider who should manage the selection process
Managers should ensure that they do not rely on personal feedback, but should possess adequate and relevant knowledge of the skills and experience of the staff at risk of collective redundancy. They should also ensure they obtain objectively verifiable evidence to support and explain the scores given to individuals, e.g. appraisals, sales figures, etc.
4. Be mindful of your actions during the consultation process
Take into consideration how you will deal with individuals not required to come into the office for the duration of the consultation process and what message colleagues should give clients about the reason for the at risk employee’s absence. Whilst informing and consulting in a redundancy situation is a legal requirement, the correct information and effective consultation will result in cost savings during the redundancy process and fewer interruptions to business.
Don’ts
5. Do not forget to inform BIS using form HR1
Employers proposing collective dismissals must remember to notify the secretary of state at the Department for Business, Innovation and Skills (BIS) using form HR1 – failure to do so is a criminal offence carrying potential fines of up to £5,000. This notification should be sent on the same day that collective consultation begins and a copy must be given to the appropriate employee representatives and BIS should also be updated if numbers increase.
6. Do not forget to consult individually
Employees will need to be consulted with individually not just collectively and employers who fail to do this run the risk of an employment tribunal finding that any ultimate dismissal was unfair. Usually, only employee representatives can bring claims about a failure to consult collectively, but individuals may bring them where workplaces have failed to appoint representatives.
7. Do not delay consultation
Collective consultation is an organic process and information should be fed through to representatives as and when it becomes available. Do not delay starting the consultation because you are trying to cut costs or do not yet have all the relevant information about proposed redundancies.
8. Do not create unnecessary paperwork
Encourage verbal discussions instead of e-mails and keep your legal team closely involved in any written communications so privilege can be retained where possible. Remind managers before consultation begins that relevant written documents can be disclosed in any employment litigation.
9. Do not avoid the responsibility of finding suitable alternative roles for employees
Searching for alternative
employment opportunities for individuals at risk of redundancy forms part of an employer’s duty to ensure a redundancy process is fair and reasonable. Merely asking the employee to submit their CV to the company will not suffice. Don’t assume that an employee who has been placed at risk of redundancy in one role will therefore be unsuitable for vacancies in other areas of your organisation. Keep an open mind.
Employment law seems to get more and more complex. It is therefore absolutely critical that employers don’t cut any corners when it comes to employment law – if you are really not sure what to do – contact our specialist
employment solicitors for free initial phone advice.