COPING WITH THE CREDIT CRUNCH: REDUNDANCY AND UNFAIR DISMISSAL Selection Criteria And Alternative Employment 1. Where a redundancy situation exists, there could be any number of employees who may face the possibility of dismissal for redundancy. An employer needs to determine which of its employees will be dismissed for redundancy. 2. To avoid making its own decision, and to protect against claims of unfair dismissal, an employer can offer voluntary redundancy to the workforce, which may render it unnecessary to make any formal redundancies. In those cases, the employer will just select form a list of employees who have volunteered to be considered for redundancy. 3. The advantages of this process are that it is : • less demoralising for the workforce than compulsory redundancy • less disruptive, provided the right people volunteer • less work needed to check that redundancy selection criteria are fair 4. However, it is: • often more expensive - longer-serving employees requiring higher redundancy payments tend to volunteer • you may need to offer enhanced redundancy payments to attract people to leave • you may get more volunteers than needed - those not selected may react negatively • you could end up with an imbalance in the skills and experience of remaining employees 5. To prevent imbalances, many companies' redundancy policies maintain management's right to decide whether a particular employee should be allowed to leave. Employers should consider amending their policies to enable them to have this facility. 6. One other option is to offer early retirement to employees. If an employer wants to use early retirement as an alternative to redundancy, they must follow the procedures given in the regulations. Some of the advantages of early retirement: • often an acceptable alternative to redundancy for employees and trade unions • less harmful to employee morale than compulsory redundancy • opportunities to promote junior employees if those retiring occupy more senior grades Some of the disadvantages :
• can be expensive compared with a one-off voluntary redundancy payment - the business may have to fund a long-term pension • may be hard to find new staff for specialised jobs if business improves] General Selection 7. Assuming a redundancy situation exists, and the employer does not wish to offer voluntary redundancies, or there are no takers, the next step is for an employer to consider which employees are to be made redundant. There are two steps: (i) defining the pool of employees from which redundancies will follow; and (ii) if necessary selecting from within that pool. 8. An employer should be using objective criteria wherever possible, precisely defined and capable of being applied in an independent way, when selecting employees for redundancy.
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- Fall '16
- Farah Nabilla