REDUNDANCIES: MAKING CUTS IN A SMALL BUSINESS
In case you missed Emily’s recent Facebook Live broadcast, here are 5 key takeaways. You can also download as a handy infographic. Any questions, or if we can help resolve an issue or get a plan in place, do GET IN TOUCH
There are no special rules for small companies
Don’t think that because you are a small business you have special dispensation from the consultation requirements around redundancy. You must follow the correct process, otherwise you leave yourself open to claims of unfair dismissal and discrimination.
Consultation is key – it has to be meaningful, and employees have to be given the opportunity to put forward alternatives to redundancy, and given details of vacancies within the business.
Don’t cherry pick the ‘people’ to be made redundant. You need to assess which areas of the business and roles are to be affected and if more than one person does the same or similar role, there needs to be a pool to select from.
Selection needs to be fair and criteria transparent – it should also be discussed as part of consultation.
Budget for redundancy pay
Employees with 2 full years service are entitled to receive statutory redundancy pay. This is capped at £489 per week and the maximum statutory redundancy pay you can get is £14,670. Don’t forget to add in the correct notice pay, and holiday accrued but not taken.