Redundancy

Downloadable information guides and policies are provided here including a model redundancy policy, a redundancy guide and a redundancy calculation table.

Redundancy occurs when

• an organisation closes down
• part of an organisation closes down
• the requirement for particular work reduces or disappears.

Most redundancy situations that arise from the ending of grants or because of reduced funds, will fall under the third option.

Non-renewal of a fixed term contract is still a dismissal and therefore employers must give a reason for not renewing it. In most cases the reason will be redundancy.

A post is not redundant if the employer immediately engages a direct replacement.

From April 2009, the Statutory Dispute Resolution Procedures were repealed and there is no longer a requirement to follow a a statutory dismissal procedure.

However employers should still ensure the process is fair and follow the guidance in the Acas 'Redundancy Handling' booklet available from ww.acas.org.uk/index.aspx?articleid=747 .  This includes consultation with affected employees, offering any suitable alternative employment if it exists, providing sufficient notice and paying redundancy payments to employees with continuous service of two or more years.

For collective redundancies of more than 20 employees, statutory requirements for consultation remain.

More details can also be found in the downloadable guides and policies below.

Redundancy guide (Word download 252kb)

Redundancy guide - pdf (PDF download 134kb)

This is a detailed guide to redundancy and the responsibilities of employers, including the consultation process, selection criteria, redundancy payments and sample letters.

Redundancy calculation table (Excel download 78kb)

Redundancy calculation table - pdf (PDF download 27kb)

A ready reckoner for calculating the number of weeks' statutory redundancy payment are due.

Fixed term contracts and redundancy (Word download 23kb)

Fixed term contracts and redundancy (PDF download 19kb)

Here Rob Good explains the basic principles which underlie the expiry of fixed term contracts.   This article first appeared in Voluntary Voice, May 2002.

Redundancy checklist (Word download 157kb)

Redundancy checklist - pdf (PDF download 53kb)

A checklist of the key points to remember when going through a redundancy process, which are covered in detail in the Redundancy Guide.

Example job matching table (Word download 131kb)

Example job matching table PDF (PDF download 37kb)

An example of a job matching table to use when undertaking a matching exercise, to determine how much match there is between the employee's existing job (to be made redundant) and a vacant job within the organisation.  It is important for organisations to give careful consideration to whether a suitable job is available elsewhere in the organisation that may need to be offered to the redundant employee.

Frequently asked questions (Word download 137kb)

Frequently asked questions - pdf (PDF download 43kb)

Frequently asked questions about issues often raised about the redundancy process, including covering how it affects employees on maternity leave, the notice period, temporarily laying staff off, and calculating redundancy pay for part-timers.

 

 Model Redundancy Policy (Word download 182kb)

 Model Redundancy Policy - pdf (PDF download 68kb)

This is a model policy aiming to minimise the effect of redundancies and covering preventative measures, compulsory redundancy, appeals and employee entitlements.

 Model Redundancy Agreement (Word download 157kb)

Model Redundancy Agreement - pdf (PDF download 58kb)

This is a model job security/redundancy agreement between an organisation and recognised union covering consultation, preventative measures, compulsory redundancy, appeals and employee entitlements.

 

 Redundancy - employee resigning (Word download 139kb)

 Redundancy - employee resigning - pdf (PDF download 45kb)

Information on the legislation and procedure when an employee resigns before the employer's notice expires.

 Redundancy - renewal and re-engagement (Word download 141kb)

Redundancy - renewal and re-engagement - pdf (PDF download 44kb)

Information on what to consider when an employee's contract is renewed or the employee is re-engaged on a new contract.

 Redundancy - time off (Word download 138kb)

Redundancy - time off - pdf (PDF download 47kb)

Details of the legal requirements for giving time off to an employee during the notice period to look for new employment or make arrangements for training for future employment.

 Redundancy - trial periods (Word download 133kb)

Redundancy - trial periods (PDF download 42kb)

Information about the legislation which enables an employee to accept an offer of alternative employment on a trial basis without automatically forfeiting the right to a redundancy payment.

Redundancy - Suitable alternative employment (Word download 137kb)

Redundancy - Suitable Alternative Employment (PDF download 41kb)

Adapted from the ACAS advisory booklet on 'Redundancy Handling', information on what to consider in relation to offering employees suitable alternative employment.

 

Further advice

Seek further advice and guidance from your local CVS or umbrella group before using the PEACe model contracts and documents.  Alternatively phone PEACe on 0203 349 8921, Monday, Tuesday, Wednesday or Thursday or email.

The material in these documents does not give a full statement of the law, nor does it reflect changes after the date stated on each document. It is intended for guidance only and is not a substitute for professional advice. No responsibility for loss occasioned as a result of any person acting or refraining from acting on the basis of this material can be accepted by the author or by LVSC.

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Page last reviewed: 27 January 2010