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Redundancy

At some point in the life of many businesses, there will be a need to restructure or downsize which may result in some positions with the company becoming redundant.

If this happens in your business, you must not only follow a fair redundancy dismissal procedure, but also consult and keep the affected employees – and their representatives if they have them – fully informed. Failure to meet inform and consult requirements can result in a penalty of up to 90 days’ full pay for each affected employee

StellarHR have handled several redundancy situations, some involving single employees and others involving several employees.

Having a clear policy in place which outlines the process that will be followed; what consultation will take place; what the selection criteria and process will be and what payments will be made, is crucial before starting any redundancy process. This will also help ensure the process runs as smoothly as possible.

Redundancy situations are often difficult and usually emotional times for those involved.

Having a clear policy is vital to ensure all redundancy dismissals are fair and therefore avoid any potential tribunal claims.

We can help reduce business costs and maintain efficiency by helping managers to deal with this process and helping design a selection process which is appropriate to your business.

We can also help support those employees who leave the business in securing suitable alternative employment elsewhere.

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