Understanding Redundancy in the Workplace
This 3-day course on dealing with redundancy covers topics such as the definition of redundancy, employee rights, consultation processes, alternatives to redundancy, and more. Participants engage in activities to discuss tasks related to redundancy and explore the Employment Rights Act 1996. The course emphasizes the distinction between redundant roles and individuals, along with the entitlement to redundancy payments. Employers are reminded of the legal obligations regarding notification and assistance for employees facing redundancy.
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DEALING WITH REDUNDANCY DEALING WITH REDUNDANCY 3 DAY COURSE
ACTIVITY 1 INTRODUCTIONS Who you are Where you work What you do and your rep role(s) Your experience of redundancies What you think will be most helpful to you from this course DEALING WITH REDUNDANCY 3 DAY COURSE
COURSE TOPICS Day 1 - what is a redundancy? rights to consultation and information consultation process communicating with members Day 2 - Day 3 - alternatives to redundancy redeployment, bumping reasonable alternative jobs relocation campaigning support selection criteria and pools scoring and resource line individual consultation and appeals time off to look for work unfair dismissal redundancy pay DEALING WITH REDUNDANCY 3 DAY COURSE
ACTIVITY 2 WHAT IS A REDUNDANCY? Using your workbooks, work as a group to discuss the tasks DEALING WITH REDUNDANCY 3 DAY COURSE
What is redundancy? The Employment Rights Act 1996 (ERA 96) identifies redundancy Under s.139 an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is wholly or mainly attributable to: the employer has ceased, or intends to cease, to carry on the business for which the employee is employed, or to carry on that business in the place where the employee was so employed; or the requirements of the business for employees to carry out work of a particular kind, or to carry it out in the place in which they are employed, have ceased, or diminished, or are expected to cease or diminish. Dismissal for a reason not related to the individual concerned (such as conduct or capability), or for a number of reasons, all of which are not so related. - In other words, it is the job that is redundant, not the person. and the right to redundancy payments Under s.135, a right to be entitled to redundancy payments: If the employee is dismissed by the employer by reason of redundancy, or is eligible for a redundancy payment by reason of being laid off or kept on short-time. DEALING WITH REDUNDANCY 3 DAY COURSE
Notification - The employer must issue an HR1 (n.b. states potential redundancies) Restricted Commercial HR1 Advance notification of redundancies Trade Union and Labour Relations (Consolidation) Act 1992, Part IV, Chapter II Note for employer There is a statutory requirement for the Government to assist employees facing redundancy. In order to do this, advance notification of potential redundancies is required from you. Failure to comply with the statutory notification requirements below without good cause may result in prosecution and a fine, on summary conviction, for the company and/or officer of the company. The Redundancy Payments Service (RPS), acting on behalf of the Secretary of State for Business, Innovation and Skills, collects the information and distributes it to the appropriate Government Departments and Agencies who offer job brokering services and/or training services so that they can discharge their obligation to your employees. The information about your company is commercially confidential and may be used only for the purpose of assisting those facing redundancy. The other Government Departments and Agencies are bound by the same confidentiality terms as the RPS. You will be contacted directly by your local Jobcentre Plus and other service providers in your local area with offers of assistance during this notification/consultation period. Details of how The Insolvency Service treats personal information may be found at http://www.gov.uk/insolvency- service/personal-information-charter. How to complete this form Your legal obligations 1) You are required by law to notify the RPS of a proposal to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less. 1) Use a separate form for each establishment where 20 or more redundancies may occur within a 90-day period. 2) Type, or use black ink and write your answers in CAPITALS, as this will make it easier for us to read. URN 13 / 1202 2) If you operate from more than one site, each one is treated separately for notification and consultation purposes. An establishment is the site where an employee is assigned to work. You must complete a form for each site where 20 or more redundancies are proposed. 3) Your Minimum period for notification and consultation for: 3) Where tick boxes appear, please tick those that apply. 4) If there is not enough space for your answers, please use a separate sheet of paper and attach it to this form. 5) If the circumstances outlined in this form change, please notify us immediately. 6) Please return the completed form, by post to: The Insolvency Service, Redundancy Payments Service, PO Box 16683, BIRMINGHAM, B2 2EE or by email to HR1@insolvency.gov.uk between 20 to 99 redundancies at one of your establishments, is at least 30 days before the first dismissal. If you email the form to us there is no need for you to send the original form by post. Tel: 0121 380 3415 for assistance on completing the form. Please be aware sections marked with an asterisk must be completed, if the information for these sections is missing the form will not be accepted. 100 or more redundancies at one of your establishments, is at least 45 days before the first dismissal. 4) You must notify us at least 30/45 days before the first dismissal and before you issue any individual notices of dismissal. Further Information on assistance for employers For more copies of the form you can down load one from our website on; http://www.bis.gov.uk/assets/insolvency/docs/forms/redu ndancy-payments/hr1pdf Guidance on redundancy handling and assistance for employers can be found on the following websites: GOV.UK - https://www.gov.uk Insolvency Service -http://www.bis.gov.uk/insolvency Wales - http://wales.gov.uk/topics/businessandeconomy/?lang =en Scotland - http://www.scottish-enterprise.com/grow- your-business 5) You must send a copy of this notification to the representatives of the employees being consulted. 6) If you have already notified us about one group of redundancies and you need to make further redundancies you should treat them as separate events. You do not need to add the numbers in the two groups together to calculate the minimum period for either group. 7) The notification date is the date on which we receive your completed form. 8) If it is not reasonably practicable for you to comply with the minimum notification periods you must make every effort do so as far as you are able. You must give reasons why you could not provide the information on time. DEALING WITH REDUNDANCY 3 DAY COURSE
Restricted Commercial HR1 Advance notification of redundancies Trade Union and Labour Relations (Consolidation) Act 1992, Part IV, Chapter II Note for employer There is a statutory requirement for the Government to assist employees facing redundancy. In order to do this, advance notification of potential redundancies is required from you. Failure to comply with the statutory notification requirements below without good cause may result in prosecution and a fine, on summary conviction, for the company and/or officer of the company. The Redundancy Payments Service (RPS), acting on behalf of the Secretary of State for Business, Innovation and Skills, collects the information and distributes it to the appropriate Government Departments and Agencies who offer job brokering services and/or training services so that they can discharge their obligation to your employees. The information about your company is commercially confidential and may be used only for the purpose of assisting those facing redundancy. The other Government Departments and Agencies are bound by the same confidentiality terms as the RPS. You will be contacted directly by your local Jobcentre Plus and other service providers in your local area with offers of assistance during this notification/consultation period. Details of how The Insolvency Service treats personal information may be found at http://www.gov.uk/insolvency- service/personal-information-charter. Establishment , notification to reps and pools How to complete this form Your legal obligations 1) You are required by law to notify the RPS of a proposal to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less. 1) Use a separate form for each establishment where 20 or more redundancies may occur within a 90-day period. 2) Type, or use black ink and write your answers in CAPITALS, as this will make it easier for us to read. URN 13 / 1202 2) If you operate from more than one site, each one is treated separately for notification and consultation purposes. An establishment is the site where an employee is assigned to work. You must complete a form for each site where 20 or more redundancies are proposed. 3) Your Minimum period for notification and consultation for: 3) Where tick boxes appear, please tick those that apply. 4) If there is not enough space for your answers, please use a separate sheet of paper and attach it to this form. 5) If the circumstances outlined in this form change, please notify us immediately. 6) Please return the completed form, by post to: The Insolvency Service, Redundancy Payments Service, PO Box 16683, BIRMINGHAM, B2 2EE or by email to HR1@insolvency.gov.uk between 20 to 99 redundancies at one of your establishments, is at least 30 days before the first dismissal. If you email the form to us there is no need for you to send the original form by post. Tel: 0121 380 3415 for assistance on completing the form. Please be aware sections marked with an asterisk must be completed, if the information for these sections is missing the form will not be accepted. 100 or more redundancies at one of your establishments, is at least 45 days before the first dismissal. 4) You must notify us at least 30/45 days before the first dismissal and before you issue any individual notices of dismissal. Further Information on assistance for employers For more copies of the form you can down load one from our website on; http://www.bis.gov.uk/assets/insolvency/docs/forms/redu ndancy-payments/hr1pdf Guidance on redundancy handling and assistance for employers can be found on the following websites: GOV.UK - https://www.gov.uk Insolvency Service -http://www.bis.gov.uk/insolvency Wales - http://wales.gov.uk/topics/businessandeconomy/?lang =en Scotland - http://www.scottish-enterprise.com/grow- your-business 5) You must send a copy of this notification to the representatives of the employees being consulted. 6) If you have already notified us about one group of redundancies and you need to make further redundancies you should treat them as separate events. You do not need to add the numbers in the two groups together to calculate the minimum period for either group. DEALING WITH REDUNDANCY 3 DAY COURSE 7) The notification date is the date on which we receive your completed form. 8) If it is not reasonably practicable for you to comply with the minimum notification periods you must make every effort do so as far as you are able. You must give reasons why you could not provide the information on time.
ACTIVITY 3 CONSULTATION Using your workbooks, work as a group to discuss the tasks DEALING WITH REDUNDANCY 3 DAY COURSE
Rights to Consultation & Information The Trade Union and Labour Relations Consolidation Act (TULRCA 92) 1992 provides two key sections regarding consultation and information: Section 188 states the following minimum consultation periods: Number under threat: 0 19 20 99 individual consultation no minimum collective consultation - 30 days Section 181 states that there is a general duty of employers to disclose information. An employer who recognises an independent trade union shall, for the purposes of all stages of collective bargaining about matters disclose to representatives of the union, on request, the information required by this section. 100 + collective consultation - 45 days The information to be disclosed is all information relating to the employer s undertaking and is information without which the trade union representatives would be to a material extent impeded in carrying on collective bargaining with him DEALING WITH REDUNDANCY 3 DAY COURSE
Consultation What should we expect? Section 188 TULRCA (2) states that, the consultation shall be about ways of: avoiding dismissals reducing the number of employees to be dismissed mitigating the consequences of the dismissals and shall be undertaken by the employer - with a view to reaching agreement with the appropriate representatives . Failure to properly consult could lead to a claim for a Protective Award DEALING WITH REDUNDANCY 3 DAY COURSE
Consultation It must not be a simple tick exercise for the employer to say they have consulted with you! Ensure that the meetings are at times that work for you including the necessary time off (irrespective of shift!) Plan pre meetings and wash ups for you and your committee to discuss strategy for the consultations and your communication with members We have a right to consultation, but what should we discuss in those meetings? What do you want on the agenda What processes would you want to discuss Think about what relevant legislation might help you What may happen if the legislation isn t followed DEALING WITH REDUNDANCY 3 DAY COURSE
Consultation What should we expect? How to reduce or mitigate the jobs under threat Review / discuss workload What support for retraining/reskilling will be given What support for those facing redundancy will be given Liaise with third parties e.g. Job opportunities Business case analysis Consider the selection process Consider an appeals process How the pools are defined How workers will be treated when dismissal happens Enhancements to redundancy pay DEALING WITH REDUNDANCY 3 DAY COURSE
Consultation and negotiation How will you reduce or mitigate the jobs under threat? Retraining time off, funding etc. Backfilling/bumping Redeployment suitable alternative Relocation support packages Voluntary redundancy Pay freeze / cut Sub contractors / agency staff How will you ensure these are applied fairly? DEALING WITH REDUNDANCY 3 DAY COURSE
Communications Good communications are essential at any time, but are critical during a redundancy Think about what you communicate and how you will do it, e.g. E-mail Social media Notices Shop meetings / face to face Post You must issue some communication members expect their union to talk to them! The employer may seek your agreement when they issue consultation updates Only support this if the notes accurately reflect the meetings you have held DEALING WITH REDUNDANCY 3 DAY COURSE
ACTIVITY 4 COMMUNICATIONS Using your workbooks, work as a group to discuss the tasks DEALING WITH REDUNDANCY 3 DAY COURSE
