The employment court has said that a redundancy is not genuine if the following steps are not followed. It’s important to have a well thought out case for redundancy and to provide the employee with the relevant information so that they can provide feedback or comments before you make a decision.
The advice below is general advice, and if there are any questions or other issues that come up you should seek further advice before proceeding.
STEP ONE: Write Proposal
An employee is entitled to receive any proposal affecting their role in writing. This can be in the form of a letter, or if more complicated a presentation. The proposal needs to cover enough detail that the employee understands the implications and has sufficient information to provide comments and feedback:
o Meeting 1 to discuss proposal & give copy of written proposal – today
o Meeting 2 to get your feedback and comments – at least 2 days (put the date)
o Consider feedback – best to consider overnight
o Meeting 3 to advise my final decisions – at least the day after meeting 2 (put the date)
STEP TWO: Invite to Meeting
Set up a meeting with the employee. Let them know you need to discuss proposed changes that affect their role, and that you want to meet with them to discuss what is being proposed and why. Let them know that they are welcome to bring a support person to the meeting, and that there will be the opportunity for the employee to provide feedback and comments before any decisions are made. Follow this up with a letter or email confirming all these details.
STEP THREE: Proposal Meeting
The purpose of this meeting is to explain the situation and your proposal to disestablish the role. Remember you need to give her a copy of the information in writing so the employee can take it away and consider it. Here are some tips for managing the meeting:
At the meeting:
STEP FOUR: Feedback Meeting
The purpose of this meeting is to listen to any feedback the employee has.
Note: The employee may wish to give feedback in writing only – which is fine. Just make sure you give the option of meeting to discuss.
General Guidelines on Restructuring
Step FIVE: Consider and Decide
You need to consider feedback provided and decide if you agree or disagree and what the final decision will be. You need to formulate responses as to why you agree or disagree so that you can include these in your final outcome meeting discussion and letter.
Step SIX: Outcome Meeting
Once you have made your decision you need to prepare the outcome for the employee.
If you decide that redundancy is the final outcome you need to meet and also put this in writing. In the letter you need to explain the reasons for the redundancy and what considerations you took into account.
You also need to plan how to handle the meeting
At the meeting you need to go through the outcome covering off:
Then give them the letter confirming the outcome. You may need to give the employee some time to read through the letter in private and then go through any questions with them or agree to meet again in an hour or so if the employee is upset and can’t discuss next steps at the meeting.
How can the people professions help with restructuring?
Your HR team can either advise a manager or business owner on the process at each step to ensure you act in a fair and reasonable manner, or may also lead the process. For managers who have worked with the employee for a long time, having your HR person run the process can be less emotional and ensure employees is treated fairly and consistently. If a manager doesn’t have much experience, then your HR person can bring their knowledge and experience to the process.
Your payroll team can process redundancy payments or other payments to the employee and answer questions about the calculation of these.
Your talent team can provide tools for interviewing if there are new roles after the restructuring, and can help with resourcing if you need to bring new candidates into the company.
Your learning team can design training for managers and employees on coping with change, building resilience, dealing with uncertainty or a number of other useful skills for when the company is going through change.
: People Matter