If there is a change in your business operations, or you are considering closing your company, you may need to make some or all of your staff redundant.
On 1st October 2006, regulations on making an employee redundant changed.
For further assistance see the Business Link or The Insolvency Service Website.
ACAS has recently updated its information booklet for businesses considering downsizing. The booklet provides impartial guidance for employers and managers on how best to handle redundancies.
It is good practice to do your best to help your employees find alternative employment. You could:
- Contact the local Jobcentre Plus to find out about suitable vacancies or training.
- Set up interviews on site for employees under threat of redundancy - these could be conducted by your HR department, or you could consider using a specialist outplacement agency. Outplacement counselling and retraining is tax deductible in respect of all redundant employees, including part-time workers.
- Contact other local employers in the area who may have vacancies.
- Offer guidance on job application forms and interview techniques.
- Offer advice on how to search for and follow up suitable vacancies in the press, with employment agencies or on websites.
- Highlight the importance of being prepared to consider a wide range of jobs.
- Consider re-employment, where this is appropriate if business picks up.
You can also help with financial issues. You should consider:
- Providing clear information on the financial effects of redundancy - amount of redundancy pay, effect on pension payments and state benefits.
- Pointing out the need for your employee(s) to discuss the financial implications of redundancy with their family as early as possible.
- If you have the budget, you could consider offering individual counselling. Alternatively you could train HR staff - if you have them - to carry out this task.
