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This policy can be used by an employer who is based in Great Britain to set out their approach to redundancy situations. It is not obligatory for an employer to hold a redundancy policy. It can however be useful for an employer of any size to hold a redundancy policy.
This policy can assist an employer to ensure that redundancies are dealt with in a fair and appropriate manner. An employer may find it useful to be transparent with its workforce regarding its redundancy procedures from the outset of any employment contract. Furthermore, it is important that an employer ensures that they have an appropriate and lawful redundancy procedure. This is because making employees redundant unlawfully may result in the issuing of penalties against the employer in respect of unfair dismissal or discrimination.
The policy will cover a range of factors, including:
An employer may also find it helpful to hold a separate equal opportunities policy to address its commitment to avoiding unlawful discrimination in the workplace and within its redundancy procedures.
How to use this document
The document should be completed with the relevant information. The employer should ensure that the information placed within the policy aligns with all contractual obligations contained within the respective employment contracts of its employees. Where the employer formally recognises a trade union, such a union should ordinarily be consulted before the policy is finalised and published.
Once the policy has been finalised, the employees should be made aware of its contents. The document should be placed in a place which is accessible to employees, such as the staff handbook or on an intranet portal. The document can be signed on behalf of the employer by an authorised representative (for example the director or manager). Whilst a signature is not a requirement, the employer may choose to do so to illustrate that it has endorsed the contents of the policy.
In the event that the employer considers that redundancies may be necessary, the policy should be adhered to. In those circumstances, the employer may deem that it is necessary to notify a pool of employees that they are at risk of redundancy and thereafter notify the relevant employees of any final selections.
The key legal provisions which are applicable to the policy are:
Acas (the Advisory, Conciliation and Arbitration Service) also provides guidelines and advice to employers in respect of redundancy.
Help from a lawyer
You can choose to consult a lawyer if you need help.
The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.
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