What steps do you need to take to make an employee redundant?
An employer must follow a proper and fair process before deciding to make an employee redundant. There must also be genuine reasons for the restructure.
The necessary steps are:
- Consider whether there are genuine business reasons for the restructure.
- Draft a proposal for what the restructure could be.
- Put the proposal to the employee (with supporting information).
- Seek their feedback on the proposal.
- Tell them they can have support in the process from a representative or advocate.
- Give a reasonable opportunity for them to prepare their feedback.
- Meet with them to receive their feedback.
- Consider the feedback.
- Reach a conclusion on the proposal or consider other alternatives.
- Advise the employee of the outcome of the process.
- Consider alternatives such as redeployment.
- Offer alternative roles.
- If no alternative roles available, advise the employee of the outcome. If it is a redundancy, advise them of the notice period etc.
If a genuine reason exists and the proper process is followed then the redundancy will be justified. In a recent case an employee challenged their redundancy but the Employment Relations Authority held that the employer had a genuine reason for the restructure and had followed all of the steps above so there was no unjustified dismissal or grounds for a personal grievance.
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