Top 5 redundancy planning considerations

With funding uncertainty facing many organisations at present, this article outlines five key redundancy planning questions to consider along with signposting to useful resources to help organisations at this time.

To find out all you need to know about how to deal with redundancies, the LRA (Labour Relations Agency) guide to Handling Redundancies in a Small Business - July 2022 is a helpful resource outlining the key stages, along with sample letters, a ready reckoner for redundancy pay calculations and much more. In addition, please consider the following questions when planning the approach to redundancy in your organisation.

  1. Have you started to plan your redundancy process to ensure you are safeguarding both your employees and organisation? If not, now is the time to start.  To help with your planning in addition to the LRA guide, have a read of NICVA's Redundancy Guidance article here.
  2. Are you aware of and have you budgeted for the statutory redundancy pay each employee will be entitled to? To work this out, go to the government's online calculator. The calculator will give a different figure for employees in Northern Ireland, as the cap on weekly pay is higher than in Great Britain. 
  3. What is the notice period you owe each employee? Check your contracts of employment and the statutory minimum notice periods required for the length of service. The NIbusinessinfo information page on Contractual and Statutory Notice Periods sets these out.  
  4. Are you aware that the three step dismissal procedure must be followed to confirm the ending of employment by reason of redundancy? It is imperative that when the decision to end employment is confirmed by reason of redundancy that this is carried out through the statutory three step dismissal procedure as set out in the LRA guide on pages 10-11. This starts from the date the ending of the employment is confirmed by reason of redundancy, not from the date you may inform staff they are under ‘protective notice’. Please note 'protective notice' is often referred to in the community and voluntary sector but does not exist in employment legislation, so please follow the guidance set out in the above NICVA redundancy resource to ensure your process is compliant with the law.
  5. Do you have employment costs cover as part of your organisational insurance policy? If so you may have access to free legal advice.  If you are making employees redundant you should inform your insurer as failure to keep them informed may negate your insurance should an employment related claim arise. 

To receive free HR advice, call Alex Hastings HR Manager, on 028 9087 7777 or email [email protected]


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