Need to make redundancies? Do it properly!

By RMS Creative Communications

13 Oct 2021

gl0_2051-charlie-wood-519x325.jpg

Employment lawyer Charlie Wood from SAS Daniels has issued a stern warning to Lancashire business owners that the Employment Tribunal could come down hard on them if they fail to follow the correct procedure when making staff redundant.

With the recent ending of furlough, forecasters have predicted a spike in job losses as businesses discover they can’t afford to retain staff without the financial support provided by the scheme.

Wood has strong advice for such businesses: “If you have to make redundancies, do it properly.  If you don’t, the financial consequences further down the line could be far more damaging than the short term gain in cashflow.”

Wood says deciding to make someone redundant is never an easy decision but employers could do much more to make the process as amicable as possible, while also protecting themselves against claims of unfair dismissal.

“Above all else, you must have a solid business case for making someone redundant. This needn’t be complex but should state what you’re proposing to do and why it’s necessary. In short, your employee needs to grasp why it’s happening.

“We are seeing far too many examples of businesses simply citing Covid as a reason for reducing staff. This may well be the root cause but it doesn’t explain in factual terms the impact Covid has had on the business. You need to provide hard facts and figures to illustrate, for instance, how Covid has led to a drop in turnover or sales.”

Wood says it is equally important that business owners present their case as a proposal, not a fait accompli.

“You need to talk in terms of what ‘might’ happen. If you fail to do this, you risk accusations of having pre-judged the decision, which defeats the object of a consultation and could leave you open to a claim.”

Allowing sufficient time for the process and having a dedicated note taker at all meetings, although not a legal requirement, is certainly advisable.

“Contrary to popular belief, following the correct procedure need not take an age. Making someone redundant – properly – can be achieved in as little as a fortnight. There is nothing to be gained by cutting corners in a bid to rush the process along.

“Trying to lead a meeting, while taking notes is a challenge. As well as capturing impartial information, accurate notes will prove invaluable should you face a Tribunal in the future, when recollection of what’s been said has probably faded.

Wood’s final piece of advice is to ensure the employee is provided with adequate information, in a format they understand, and given the opportunity to ask questions throughout the process.

“Without doubt the main reason employees bring claims to the Employment Tribunal is because they don’t understand why they’ve been made redundant. All too often, they feel they’ve been singled out for personal reasons or feel that the decision is simply unfair.

“A simple FAQ which anticipates some of the possible questions an employee might ask is very useful. It should set out what’s happening, why it’s happening and make it clear how they can meaningfully engage in the process.

“Even if they aren’t interested in this level of detail, it will help concentrate your own thinking and also demonstrate you have done your best to explain things clearly should you face a Tribunal in the future.

“You really do need to give people the chance to absorb what’s being presented to them and also the opportunity to ask questions and even make suggestions about possible ways to alleviate the situation. Do take these seriously.

“Tribunals are switched on to companies going through the motions and simply treating the redundancy process like a tick box exercise. Yes, there is a process to follow but marrying this with thought and meaningful communication can make all the difference to how your actions are received.

“It ultimately comes down to treating people with respect and thinking how you would want to be treated if you were facing redundancy yourself.”

If you have any questions, contact [email protected]

Latest news

1

Preston frozen dough brand has new celebrity shareholders Ant and Dec and Amy and Chris Cheadle

Preston frozen dough brand has new celebrity shareholders

18 Jul 2025

2

Wellbeing focused co-working space with its own pub in Burnley gets ready for launch Dave Scholes and Malcolm Ireland

Wellbeing focused co-working space with its own pub in Burnley gets ready for launch

18 Jul 2025

3

UK's pioneering Combat Air Flying Demonstrator is revealed Flying Combat Air Demonstrator

UK's pioneering Combat Air Flying Demonstrator is revealed

17 Jul 2025

4

A fresh brew for The Printed Cup Company The Printed Cup Company

A fresh brew for The Printed Cup Company

17 Jul 2025

5

Joe Diston from Beever and Struthers appointed to new Global IFRS leader for HLB International Joe Diston

Joe Diston from Beever and Struthers appointed to new Global IFRS leader for HLB International

17 Jul 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

Preston Tech Connection: Web3 is Dead. Or is It?
July Longer Banner.jpg.jpg
LBV Hub Networking
29 Jul 2025 - 29 Jul 2025

Preston Tech Connection: Web3 is Dead. Or is It?

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Preston Freelancer Meet-Up: July
Longer July Banner.jpg.jpg
LBV Hub Networking
31 Jul 2025 - 31 Jul 2025

Preston Freelancer Meet-Up: July

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 11:30

Advantage: AI – A Workshop for Business Leaders – August 14th
Navy--Event Tile.png.png
LBV Hub Seminars
14 Aug 2025 - 14 Aug 2025

Advantage: AI – A Workshop for Business Leaders – August 14th

Door4 Office, Burnley Wharf, Burnley, BB11 1JG

09:00 - 12:00

The Business Network Central & East Lancashire
LBV Header (24).png.png
LBV Hub Networking
21 Aug 2025 - 21 Aug 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Morecambe Bay Walk
Walk.jpg.jpg
LBV Hub Awards
30 Aug 2025 - 30 Aug 2025

Morecambe Bay Walk

Arnside, CARNFORTH, LA5

09:30 - 14:00

Cumbria Business Expo 2025
https---cdn.evbuc.com-images-880461633-4862066883-1-original.20241022-110415.jpeg.jpg
LBV Hub Exhibitions
19 Sep 2025 - 19 Sep 2025

Cumbria Business Expo 2025

Carlisle Racecourse, Carlisle, CA2 4TS

09:00 - 15:00

Help to grow management course
Help to grow - barriers to growth.png.png
LBV Hub Seminars
26 Sep 2025 - 16 Dec 2025

Help to grow management course

Preston Campus , Preston , PR1 2HE

09:00 - 15:00

North West Business Expo 2025
https---cdn.evbuc.com-images-880456273-4862066883-1-original.20241022-105445.jpeg.jpg
LBV Hub Exhibitions
24 Oct 2025 - 24 Oct 2025

North West Business Expo 2025

Bolton Stadium Hotel, Bolton, BL6 6SF

09:00 - 15:00

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

Burnley FC , Burnley, BB10 4BX

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV122 Online Graphic
Subscribe now

Weekly news bulletin