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Article Directory :: Business - General Articles
Compulsory redundancy is the termination, by the employer, of an employee's employment contract for reasons of downsizing the workforce, usually due to a reduction in the business for which the employee was so employed; reduction in the type of work for which the employee was so employed; closure of the place of business where the employee was so employed; or reduction at the place where the employee was so employed in the type of work for which the employee was so employed.
A compulsory redundancy UK dismissal is not related to the employee's conduct, performance, resignation or retirement.
Management can, by carefully developing an appropriate strategy for managing the workforce, avoid or minimise compulsory redundancies, thereby easing the process of change and minimising the disruption to business performance. Effective planning can help to determine staffing needs, which can lead to improved job security for employees. Management can avoid or minimise compulsory redundancies through natural wastage, restrictions on recruitment, retraining and redeployment, reduction or elimination of overtime, short-time working or temporary lay off (where contracts permit), and early retirement or voluntary redundancy.
In deciding who should be dismissed in a compulsory redundancy UK, the employer needs to ensure that the balance of skills and experience within the remaining workforce matches business needs.
The employer must follow a standard redundancy dismissal procedure which involves written notification, hearing and appeal. Firstly, the employer must notify the employee, in writing, of the reason for the redundancy and invite him to a meeting to discuss the situation. Then, the employer must hold a meeting with the employee to discuss the redundancy, to which the employee has the right to be accompanied. Then, the employer must notify the employee of the decision to dismiss him and of his right to appeal. If the employee wishes to appeal, then the employer must hold an appeal meeting, to which the employee has the right to be accompanied, and inform the employee of the final outcome of the appeal.
Although the employee may decide who accompanies him when he has the right to be accompanied, usually the choice is limited to a fellow worker or a trade union official (not necessarily one from within the organisation). The accompanying person can address the meeting, but cannot answer questions on behalf of the worker without the employer's agreement.
Failure to follow appropriate and reasonable procedures could lead to the employer being liable for claims of unfair dismissal, even if the employer has potentially good grounds for the dismissal. The employee may take the matter to an Employment Tribunal. The Employment Tribunal system is the final way of determining whether or not the employer has behaved appropriately. Employment Tribunals will hear disputes concerning redundancy payments, unfair dismissal and discrimination.
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