{"id":63,"date":"2013-01-23T08:30:00","date_gmt":"2013-01-23T08:30:00","guid":{"rendered":"http:\/\/sjbealehrconsult-co-uk.php5.hostingweb.co.uk\/blog\/?p=63"},"modified":"2013-12-06T21:02:36","modified_gmt":"2013-12-06T20:02:36","slug":"mod-redundancies-ten-top-tips-for-successful-management","status":"publish","type":"post","link":"https:\/\/sjbealehrconsult.co.uk\/blog\/mod-redundancies-ten-top-tips-for-successful-management\/","title":{"rendered":"MOD Redundancies: Ten Top Tips for Successful Management"},"content":{"rendered":"<p>The MOD has just announced that there are to be 5,000 more redundancies in summer 2013. \u00a0This follows a gradual reduction in the number of troops the UK maintains, with yet more to come so that by 2020 there will only be 10,000 in total. \u00a0This is all part of a drive to help cut the deficit.<\/p>\n<p>When managing redundancy there are key things that the MOD along with any employer needs to know.<\/p>\n<p>1. Ensure the Redundancy is Genuine<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">An employment tribunal\u00a0can\u00a0investigate whether the redundancy is genuine, ie the real reason for dismissal so do not be tempted to dress up\u00a0a performance or capability dismissal as a redundancy. This could result in a finding of unfair dismissal.\u00a0 Before starting the process assess if you could avoid making redundancies by considering whether cutting overheads or restructuring via salary cuts, shorter working weeks, job shares or unpaid sabbaticals could save jobs. \u00a0You could also consider offering voluntary redundancy with a possible enhanced package to encourage employees to come forward. \u00a0The needs of the business are the most important thing however and you do not \u00a0have to give voluntary redundancy if you wish to keep valuable members of staff who volunteer.\u00a0<\/span><\/div>\n<div><span lang=\"EN-US\">\u00a0<\/span><\/div>\n<div><\/div>\n<div>2. Ensure you follow your own redundancy procedures<b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">If you have a company redundancy procedure, make sure you follow it. \u00a0An employment tribunal will be very interested in whether you have a policy and that you have followed it. \u00a0If you don&#8217;t follow it you could be penalised for doing so.<\/span><\/div>\n<div><span lang=\"EN-US\">\u00a0<\/span><\/div>\n<div><\/div>\n<div>3. Ensure you have you worked out your pools for selection<b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">Ensure the proposed restructure is set out so it is clear from which departments or groups of employees redundancies are being made.\u00a0 Consider which jobs are at risk and identify the groups of employees who are doing similar jobs where the redundancies may be made (the pool). \u00a0<\/span><\/div>\n<div><span lang=\"EN-US\">\u00a0<\/span><\/div>\n<div>4. Ensure selection criteria for redundancy is fair and objective<b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">Devise a redundancy matrix to select who may be made redundant using selection criteria which is capable of being measured. \u00a0It must be non-discriminatory. Reflect the\u00a0needs of the business\u00a0when selecting who may be made redundant. \u00a0Selection criteria can include skills, experience and performance. \u00a0Sickness absence can be taken into consideration but be careful in case there may be disability discrimination slant on that.\u00a0<\/span><\/div>\n<p>&nbsp;<\/p>\n<div>5. Ensure you consult correctly<b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><span lang=\"EN-US\">Consultation should be meaningful and correct. \u00a0Once you have identified which employees are at risk of redundancy, they should be advised of this and told the length of the consultation period; this will vary depending on the proposed number of employees possibly being made redundant. \u00a0With less than 20 employees the consultation period is not stipulated in employment legislation so the timeframe can be flexible, however, do not rush this process. \u00a0With 20-99 employees the consultation period must be 30 days before the first dismissal. \u00a0With 99+ employees the consultation period is currently 90 days but from April 2013 this will be reduced to 45 days. \u00a0It is important to include employees on\u00a0long-term sick leave or maternity leave\u00a0in all consultation discussions. \u00a0Employee consultation meetings should be face to face and should be a two way process.\u00a0<\/span><\/div>\n<div><\/div>\n<div><span lang=\"EN-US\">6. Consider Ways to Avoid Compulsory Redundancy<\/span><b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">Discuss and give serious consideration to any suggestions made by employees that you have not considered \u2013 eg early retirement, freeze on overtime, ban on recruitment, terminate agency temps. \u00a0Employees can sometimes come up with some creative ideas.\u00a0<\/span><\/div>\n<div><\/div>\n<div><span lang=\"EN-US\">7. Look at suitable alternative employment<\/span><b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">With each employee at risk of being made redundant if possible try and look for alternative employment elsewhere within the company \u2013 this is sometimes more possible with larger companies.\u00a0 It must be deemed to be mutually suitable with a four week trial period being offered to consider suitability by both employer and employee.\u00a0 If the trial period does not work out the employee may be made redundant with compensation if appropriate. \u00a0\u00a0If the employee refuses to accept reasonable suitable alternative employment they may lose the right to redundancy compensation.<\/span><b><\/b><\/div>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<div>8. Ensure you correctly calculate redundancy payments<b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">Don\u2019t forget to work out the cost of\u00a0contractual notice or payment\u00a0in lieu of notice and redundancy payments. Statutory redundancy payments are based on length of service, age and salary, subject to a current statutory cap of \u00a3430 a week; this will rise to \u00a3450 from 1 February 2013. Employees need to have two years continuous service to be eligible for redundancy pay.\u00a0 If the employee earns less than the statutory figure then you calculate the figure based on gross actual pay.\u00a0 Check employees\u2019 contractual, policy and custom and practice rights to redundancy payments as there may be a right to enhanced redundancy payments. \u00a0 Untaken holiday also need to be calculated and paid.\u00a0 Bonus and commission payments may also be due. \u00a0 Notice pay will also need to be calculated if the notice pay is not being worked. \u00a0<\/span>Redundancy pay is untaxed up to a maximum of \u00a330,000, however holiday pay, notice pay and bonus&#8217; are taxed.<\/div>\n<div><\/div>\n<div><span lang=\"EN-US\">9. Set up a Dismissal Meeting<\/span><b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div><span lang=\"EN-US\">If compulsory redundancy can not be avoided organise a dismissal meeting and confirm the details in writing giving the right to be accompanied.\u00a0 Confirm the decision to terminate employment during the meeting and follow up with a confirmation letter.<\/span><\/div>\n<div><\/div>\n<div><span lang=\"EN-US\">10. Give the Right to Appeal<\/span><b><\/b><\/div>\n<p>&nbsp;<\/p>\n<div><\/div>\n<div>The termination letter should set out the terms of appeal to a more senior manager providing the right to be accompanied.<\/div>\n<div><\/div>\n<div><a href=\"http:\/\/www.sjbealehrconsult.co.uk\/redundancy_management.htm\">http:\/\/www.sjbealehrconsult.co.uk\/redundancy_management.htm<\/a><\/div>\n<div><\/div>\n<div><span lang=\"EN-US\">\u00a0<\/span><\/div>\n<div><span lang=\"EN-US\">\u00a0<\/span><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The MOD has just announced that there are to be 5,000 more redundancies in summer 2013. \u00a0This follows a gradual reduction in the number of troops the UK maintains, with yet more to come so that by 2020 there will only be 10,000 in total. \u00a0This is all part of a drive to help cut [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[133,136,132,134,135,137,131],"tags":[],"class_list":["post-63","post","type-post","status-publish","format-standard","hentry","category-appeal-against-redundancy","category-managing-redundancy","category-mod-redundancies","category-mod-redundancy","category-redundancy","category-redundancy-management","category-voluntary-redundancy"],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>MOD Redundancies: Ten Top Tips for Successful Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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