When redundancy becomes the only option, the problems normally associated with it will be reduced if there is an established procedure to follow.
The procedure should have three options:
- To treat employees as fairly as possible.
- To reduce hardship as much as possible.
- To protect management’s ability to run the business effectively.
These aims are not always compatible. The management will want to maintain its key effective workers while trade unions may want to adopt the principle of ‘last in first out’ in redundancies.
The objectives of the redundancy procedure should ensure that:
1.The trade unions concerned will be informed as soon as possible of the possibility of redundancy.
2.Every attempt will be made to:
- Absorb redundancy by the natural attrition of employees.
- Find suitable alternative employment within the company for employees who might be affected and provide training if necessary.
- Give individual’s reasonable warning of pending redundancy in addition to statutory period of notice.
3.If alternative employment is not available in the company and more than one individual is affected, the factors to be taken into consideration in deciding who should be made redundant will include:
- Length of service with company
- Value to the company
- Opportunities for alternative employment elsewhere
4.The first three of the above factors should be regarded as the most important. Length of service should however be the determining factor.
5.The company should make every endeavour to help employees find alternative work if necessary.