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Sector Matters - Redundancy and ‘Winding up’ advice
In the current climate organisations may be in the unfortunate position of having to make staff redundant or even go so far as closing down the organisation itself, known as ‘winding-up’. Sector Matters has drafted some overview advice for th
Redundancy
- For redundancies involving fewer than 20 employees, make sure you follow a minimum three step dismissal process before making an employee redundant. For full details on how to follow a best practice redundancy consultation process, please see NICVA’s Redundancy Guidance
- Redundancy is legally classified as a form of dismissal so if your organisation has indemnity insurance which covers employment legal costs, you should notify your insurer prior to issuing formal redundancy notification letters.
- Ensure that employees are given notice in line with their contractual notice period, do not rely on ‘protective notice’ letters issued at the start of the redundancy process to cover this. An employee’s period of notice legally begins the day the official notification of redundancy/dismissal letter is issued.
Advice on winding up an organisation
What’s your rationale?
Governing document
Regulators and statutory bodies
Finances
Human Resources and staffing requirements
Funders requirements
Utilities and lease
Members/beneficiaries
PAYE payments
Assets
Storage of HR and finance records
- Paula Reynolds at Sector Matters on 028 9087 5018 or email [email protected]
- NICVA's Governance and Charity Advice Service on 028 9087 7777 or email [email protected]
- NICVA's Human Resources Manager on 028 9087 7777 or email [email protected]
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