Can staff be made aware that they are at a risk of redundancy without any protocol?

20 September 2022 | Raj Laxman

 

With the sad death of HM Queen Elizabeth II and with Prince Charles becoming King Charles III, some staff at Clarence House have been made aware that their jobs are now at risk of redundancy due to the change of role of now King Charles III.

The Public and Commercial Services Union (PCS) have expressed disappointment over the announcement of redundancies during the period of mourning and described it as "nothing short of heartless".

Where on the facts that employees suspect their jobs are at risk of redundancy, employers are still required to follow a fair and reasonable procedure to minimize the stress to those who are at risk of redundancy and although it is good practice to make a redundancy announcement at a point when the employer has decided that there are no other options to avoid redundancy but such an announcement must also emphasise that no decisions will be taken without full and meaningful consultations with the employees affected.

What should an employer do?

With under 20 employees at risk of redundancy as a guide, it is prudent to have at least three meetings over a two-week minimum period but can be less and for a shorter period.

Where 20 to 99 employees are affected, legislation dictates the requirement for a minimum 30 day consultation period beginning from when certain statutory information has been provided to either recognised trade union representatives or to elected staff representatives.

Where 100 or more employees are affected the consultation period increases to 45 days.

In addition, where 20 or more employees are affected, there is also a requirement to notify the Insolvency Service, acting on behalf of the Department for Business Innovation and Skills, on form HR1 of the potential redundancies prior to the required consultation period. Failure to do so leaves an employer liable to a fine.

During the period of ‘meaningful’ consultation period no decision should have been made, rather it is a ‘potential’ situation where all options, alternatives and other suggestions are explored. It is only when this process is exhausted that a decision is made. If the decision has already been made, then the employee could argue that the consultation was predetermined and meaningless which could be grounds for a costly unfair dismissal claim and, where 20 or more employees are affected to a protective award of up to 90 days’ pay.

Redundancy process can be quite complex and the above is a quite simple outline of matters. It should not be relied upon as legal advice and is correct as of 20th September 2022.

Should you need any further assistance on the matter, please do not hesitate to call our advice-line team on 0116 274 9193.

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