Employers must follow letter of the law on collective redundancy consultation

“Redundant employees win pay-outs after company fails to consult them properly”. This headline is becoming more and more common as companies disregard the correct procedures to undertake with regards to processing redundancies. As the recent case study below shows us, more people are winning claims against their previous employers after not being properly consulted before being made redundant.

Recent example of a company not following proper HR procedures

Former employees at Barratts Shoes have been awarded up to £4000 each in compensation, following the second victory for trade union USDAW over the retail company. It was found for a second time by an Employment Tribunal that their employees were not properly consulted before being made redundant.

The case highlights the necessity for businesses to follow the correct redundancy consultation processes and procedures before making redundancies. Failure to do so can lead to companies being taken to tribunal, resulting in awards of up to 90 days’ gross pay being awarded to affected employees.

Key points to consider when carrying out redundancies

Employers should bear the following key points in mind when carrying out a collective consultation regarding redundancies.

  • It’s important to start consulting employees early. As a requirement, employers should start consulting with employees prior to the first dismissal taking place, and no later than 30 days before the first dismissal or 45 days where employers intend to make more than 100 employees redundant within a 90 day period.
  • Ensure that you are consulting with the correct people. Employers are required to consult with appropriate representatives of the employees who may be affected by the proposed dismissals or by any measures taken in connection with the dismissals.
  • Provide all the information you are required to disclose under TULRCA to employee representatives in writing.
  • Ensure that your consultation process is genuine and detailed appropriately.
  • Do not neglect individual consultation, even if you are also consulting with employee or trade union representatives.
  • Seek legal advice if you are contemplating redundancies.
How Aspire Cambridge can help

Our HR consultants have many years of experience dealing with Human Resource issues at a number of companies covering a range of industries. Redundancies is a tricky issue, that should involve the consultation, guidance and even management by a HR expert. You can read our Case Studies, which include a large scale outplacement contract, by clicking here.

In the first instance, give us a call for a no obligation review of your requirements. During this call, we can discuss the outline of what you need and follow up with a more detailed email of how we can assist moving forward.

When ignored or inappropriately addressed, HR issues can become a costly expense for your business.

Call our HR team today on 01223 855441.