Need to make some people redundant

Just looking for some advice please.

We have had a severe downturn in orders over the last few months, and the situation is unlikely to change in the next few months either. We have therefore decided to make some people redundant

We currently employ up to 100 people, and need to make more than 20 redundant. We dont yet know the actual number - it could be anywhere between 20 and 50.

I'll just list some of my current questions below, because I'm sure you'll need more information later.

1. When we send out the first letter informing people they are at risk, do we actually need to specify in the letter the number of people we expect to make redundant?

2. As we dont yet know who we will make redundant, should we send "at risk" letters to every employee in order to make the selection fair?

3. Is the 30 day consultation period normally classed as 30 working days, or 30 calendar days? How long can the consultation period be extended for - ie if we decide to wait until the end of February to see the current situation, is this acceptable?

4. Is there any specific wording that should be used within redundancy notice letters, or can they be standard worded letters?

Thanks in advance for any information you can provide

Thank you for your message. Unfortunately you don’t specify whether the employees that are to be made redundant are represented by a trade union or whether you have any pre-existing representatives to consult with on the redundancy matter . I have outlined some answers to your questions below, but please feel free to return if you need any further help.

Before your embark upon the redundancy process, it is crucial that as an Employer you have a plan of how many employees you propose to make redundant. Consultation must begin when you are proposing to make the redundancies e.g. you shouldn’t come to a definite decision to make x employees redundant as the representatives should still be able to influence the outcome.

As you state, you are unsure how many will be made redundant in the end, you are proposing to make between 20 and 50 employees redundancy, this will be a Collective Redundancy situation. A collective redundancy is one where 20 or more employees are to be dismissed as redundant within a 90-day period. I will talk more about this below for you. This is a complex area and there are many things which you need to take into consideration including a consultation process which commences at least thirty days before the first of the dismissals takes effect plus and notifying the projected redundancies to the Department for Business, Enterprise and Regulatory Reform.

Q: When we send out the first letter informing people they are at risk, do we actually need to specify in the letter the number of people we expect to make redundant?

As this is a collective redundancy situation you need to disclose the following to the representatives:
• The reasons for the proposals;
• the numbers and descriptions of employees it is proposed to dismiss as redundant;
• the total number of employees of any such description employed by the employer at the establishment in question;
• the proposed method of selecting the employees who may be dismissed;
• the proposed method of carrying out the dismissals, taking account of any agreed procedure, including the period over which the dismissals are to take effect;
• the proposed method of calculating any redundancy payments, other than those required by statute, that the employer proposes to make.

Q; Is the 30 day consultation period normally classed as 30 working days, or 30 calendar days? How long can the consultation period be extended for - ie if we decide to wait until the end of February to see the current situation, is this acceptable?

Employment Statute does not specify a time-limit whereby consultations must be completed by. This will depend on the circumstances of the redundancy situation. Whilst consultation must start at least 30 or 90 days before the redundancy notices take effect, it is not necessary that consultation should last for all of that time either.

I hope this has helped, but please feel free to come back to me if you have any further questions. If you need any further reading, we have a section which will give you more information about the legal requirements. Click Here for a RedundancyForum post about collective redundancy and consulation

Whilst I am sure you have now been given advice and not wishing to openly be looking for work, if you require template letters etc please visit our website www.qandalawbusiness.co.uk and we can provide you with a complete employment law package starting at £15 plus vat per month no long contracts only monthly.

If you have any further questions please post and I will see if I can help.

Regards

Iain Lock