What is redundancy and why is it an issue for employers?
Redundancies are difficult. Redundancy expertise is essential.
The reality is that the redundancy process is difficult for the Employee, but is also an unpleasant one for the Employer. It’s something the Employer must get right first time, and have very clear procedures – and training if necessary – for Managers, regardless of the extent to which the HR Function is able to support them through it.
For the purpose of this section of our website, we are focusing on non-collective redundancies – that is when less than 20 employees are being let go.
What is Redundancy?
Redundancy is when you, as an employer reduces the workforce because a job or jobs are no longer needed. Note that if you dismiss somebody and employ someone else, that is not a redundancy.
What rights do Employees have in Redundancy?
Legislation related to Redundancy bestows a minimum entitlement to a redundancy payment for employees who have a defined period of service with the employer. This is commonly referred to as “statutory Redundancy. Remember however, that not all employees are entitled to the statutory redundancy payment.
April 22, 2021
By Florence Kenefick