Employees are entitled to redundancy payments if they are dismissed due to one of the following:
- The employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was so employed
- The employer has ceased, or intends to cease, to carry on the business in the place where the employee was so employed
- The requirements of the business for employees to carry out work of a particular kind has ceased or diminished or are expected to cease or diminish
- The requirements of the business for the employees to carry out work of a particular kind, in the place where they were so employed, has ceased or diminished or are expected to cease or diminish.
MadAboutHR can support your business with downsizing programmes from small restructures to complete site closures:
- Avoiding redundancies
- Consultation process
- Helping redundant employees with job seeking skills
- Organisation redesign
- Redundancy payment calculations
- Selection process
“Redundancy exercises can be extremely stressful for all concerned and demotivating for employees. Sometimes, it can be eased by outsourcing elements of the exercise, particularly the selection process, to ensure that all decisions are impartial. Get it wrong and this could be a very costly exercise. I would say that the most important element is communication.”
Fliss Sykes, HR Business Partner