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Guide to redundancy obligations and timeline

Reading time 2 minutes (inc. support info). Reviewed 21/05/2023.
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The guide outlines the obligations and timeline for employers during redundancies, ensuring compliance and supporting a smooth transition.

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What is a Guide to redundancy obligations and timeline?

The purpose of this guide is to provide employers with a structured overview of the obligations and timeline involved in managing redundancies.

It helps employers understand the necessary stages and tasks, as well as the associated timeframes, to ensure compliance with employment laws and regulations. By following this guide, employers can effectively navigate the redundancy process, promote transparency, and support employees during this challenging period.

Guide to redundancy obligations and timeline
guide to redundancy obligations and timeline

What legal and best practice aspects should employers be aware of?

  • Employment Rights Act 1996: Provides statutory rights for employees, including notice periods, redundancy pay, and unfair dismissal protections.

  • Trade Union and Labour Relations (Consolidation) Act 1992: Regulates collective consultation requirements when making 20 or more employees redundant within 90 days.

  • Equality Act 2010: Prohibits discrimination during the redundancy process based on protected characteristics, such as age, gender, race, disability, etc.

  • Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE): Covers situations where a business is transferred, requiring employee consultation and protection.

  • The Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order 1999: Modifies redundancy payment provisions for certain local government employees.

  • The Information and Consultation of Employees Regulations 2004: Requires employers to inform and consult with employee representatives in redundancy situations.

  • Employment Tribunal Rules of Procedure: Provides a legal framework for resolving employment disputes related to redundancies through the tribunal system.

  • Health and Safety at Work Act 1974: Ensures employers provide a safe working environment during the redundancy process and beyond.

  • Statutory Maternity Pay (General) Regulations 1986: Covers maternity pay entitlements during redundancy situations for pregnant employees.

  • National Minimum Wage Act 1998: Sets minimum wage rates that must be maintained during the redundancy process.

Guide to redundancy obligations and timeline

The following timescales are indicative only.

Actual timescales will vary depending upon the complexity of the redundancy, and the number of employees.

Stage Task Timeframe
Identification of Redundancy Need Assess business reasons for redundancy As soon as the need arises
  Determine the number and roles at risk  
  Explore alternative options to redundancy  
Consultation Individual consultation 2-4 weeks
  Collective consultation 30 days or more
  Provide relevant information and reasons  
  Discuss alternatives and gather input  
Selection Criteria Establish fair and objective criteria Before consultation begins
  Communicate criteria to employees  
Notice and Redundancy Payments Provide written notice As per statutory requirements
  Calculate and pay redundancy payments  
  Inform employees of entitlements  
Alternative Employment Consider internal alternative roles Throughout consultation process
  Offer redeployment or retraining options  
  Provide support and training  
Termination and Appeals Conduct fair dismissals As per statutory requirements
  Allow time for appeals process Reasonable timeframe, typically 1-2
Post-Redundancy Support Offer ongoing support and assistance Throughout the transition period
  Provide career counseling and job search aid  
  Assist with obtaining new employment

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