ZOOM Q&A JUNE 19 2020
In our 3 rd ZOOM Q&A on – Friday 19 June 2020, we discussed the basic rudiments of post-lockdown restructuring.
RESTRUCTURING
Consider your business as if you were starting it anew
Based on known business needs and tasks create a structure chart without people, just posts
Draft new Job Descriptions
Compare Current structure v Required structure – ID potential changes required
Redundancy is defined by the Employment Rights Act 1996 as a dismissal attributable wholly or mainly to:
the closure of your business
the closure of a place of work where the employee is employed
a diminishing requirement for an employee to carry out work of a particular kind
a diminishing requirement for an employee to carry out work of a particular kind at the place where an employee is employed.
CONSULTATION
Collective v Individual
When contemplating making more than 20 people redundant within a period of 90 days – at one establishment, the consultation period must be at least 30 days. If 100 or more employees are to be dismissed, this becomes 45 days.
Where fewer than 20 employees are to be made redundant - no requirement to consult with the employees on a collective basis. It is recommended that the consultation period is for no less than two weeks
If at risk roles involve more than one employee doing the same or similar job, you may need to consider a selection process
MEASURABLE CRITERIA
Criteria should align with the person specification on the job descriptions, they might include:
Range of skills
Qualifications
Versatility, flexibility, resilience
Suitability for future role
Experience relevant to future needs of the business
Training & Qualifications
Timekeeping
Conduct and attendance history - with care!
Assessments must be carried out by more than one person independently. This avoids any allegation that personal relationships have influenced the decision.
PROCESS
General Announcement
Enter into individual consultation meetings with an open mind
Share proposals in full - revised structure, job descriptions, and if relevant share the proposed selection criteria
Consider all views, ideas and opinions
Carry out selection
SUITABLE ALTERNATIVE EMPLOYMENT
Consider any Suitable Alternative Employment (SAE) – “suitable” means work which the employee could reasonably be expected to do and which is on terms and conditions that are not substantially less favourable.
After thorough and meaningful consultation, it may be fair to dismiss on the grounds of redundancy.
PAY
An employee with more than 2 years’ service is likely to be eligible for a redundancy payment.
A week's pay for the purposes of statutory redundancy pay is currently capped at £538; if an employee's pay exceeds £538 per week, £538 is the figure used to calculate a redundancy award. If an employee earns less than £538 per week, redundancy pay will be calculated on the basis of his or his/her actual pay.
AMOUNT OF REDUNDANCY PAY
The Employment Rights Act 1996, as amended by the Employment Equality (Age) Regulations 2006, provides for the following "redundancy payments"
(a) 1½ weeks' pay for each year of employment during which the employee was aged 41 or over
(b) 1 week's pay for each year of employment during which the employee was aged 22–40 inclusive
(c) ½ week's pay for each year of employment in which the employee was aged 21 and under.
Written Particulars of Redundancy Payment
An employer must give to an employee who is eligible for a statutory redundancy payment a written statement showing how the payment has been calculated.