We are a company of 75 full time employees. We train people in sales marketing and service. Due to one of our larger clients facing extremely tough economic conditions we can no longer afford to keep 2 account managers on the account. We therefore believe these 2 roles are now redundant. What is the correct step by step process we need to follow?
Province/Country relating to question: Uk
Hello and thank you for your question, which I will be happy to assist you with. Please let me know if these are unique positions or if there are a number of such positions?
please do not rate until you have received my answer. Could the employees argue that there are other employees doing the same or broadly similar jobs?
In order to successfully conduct a redundancy exercise you need to:
Generally speaking, redundancy is used to describe a situation in which an employer decides to reduce the number of its employees, either within the business as a whole, or within a particular site, business unit, function or job role. An employer may decide to make redundancies for a variety of reasons, including recession or other economic pressures requiring business closure or reduction in staff number, changes in the nature of products/services offered, internal reorganisations, relocation of business, etc. The reason for the proposed redundancies will not be challenged and the employer will simple have to justify that the actual reason conformed to the statutory definition of a redundancy.
The legal framework is as follows: according to Section 139 of the Employment Rights Act 1996, a redundancy situation can only occur in one of the following circumstances:
Whilst the first two reasons are reasonably straightforward, it is the third reason that will be used most commonly and also the one that brings the most challenges.
Examples of when there is a diminishing responsibility to do work of a particular kind are:
Once you have identified a potential redundancy situation, you need to choose who is to be potentially made redundant. You then place them at risk of redundancy and consult with them over the proposed redundancies. You have a duty to try and find them suitable alternative employment within the company but if that is not possible they may eventually be made redundant.
Finally, you issue them with formal notice of redundancy.
The above is an overview and covers the most important aspects. There is a useful toolkit available for employer, which you can refer to for more details:
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Expert in UK Employment Law
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