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All about Redundancy

Have you ever heard that a person is fired from his/her workplace even after a good performance? I am sure that many of you must have heard about this

Have you ever heard that a person is fired from his/her workplace even after a good performance? I am sure that many of you must have heard about this situation and many of you must have faced it. There could be many reasons behind this and one might be the poor economy of the firm or the person working is no longer needed for the work. 

Well! In professional terms, we call it “Redundancy”. In this article, I will be discussing every basic information about Redundancy. So! Stay tuned.

Redundancy Definition

As I mentioned earlier, it’s the situation where the employer terminates his/her employment due to some reason like- poor economic condition of the company they are working in, the post or the position is no longer required, scarcity of funds, shifting of the business in another location or place, in case the employer has decided to close the firm, etc. 

Being terminated does not always come with a notice. Manier times the employer terminates the employee on very short notice or suddenly without any information. 

Now that you know the meaning of Redundancy, let me tell you how an employer decides on whom to terminate. 

The selection process

Being an employer, they have the right to terminate whoever they want. Though the employer might terminate the person without any warning, it is a fact that the process starts a few days before the termination. Sometimes it is difficult for the employer to select the employee to be terminated. Therefore, they make decisions based on many parameters like- 

  1. Degree qualification
  2. Skills
  3. Behavior and much more.
  4. Experience
  5. Attendance
  6. Service length
  7. Discipline
  8. Work performance
  9. Achievements, etc.

Redundancy process

No matter what, one should always opt for the right process even for the Redundancy. Here are the basic steps to be followed for Redundancy-

  • Preparation- The first step is to think and analyze whether the Redundancy is required or not. If yes, then only proceed further. Once you have made up your mind about Redundancy then you need to fix a certain time for it along with all the documentation. 
  • Selection- Now, being an employer, if you want to carry out the Redundancy process, then you need to shortlist some names for it. Once the names are shortlisted, now it’s your turn to judge them on different parameters like-Degree qualification, skills, behavior experience, Attendance, service length, discipline, work performance, etc. Make sure not to be partial at the time of selection. 
  • Individual consultation – Being an employer it’s your duty and right to discuss the entire situation with your employees and also brief them about the whole scenario. If you are about to Redundicate someone you have fixed a legal time frame regarding consultation. The frame is decided based on the employee you are going to be redundant. Not only this, but being an employer you must explain that you are dedicating the employee. Here is the list of time frames concerning respective consultation needed- 

 

Number of employeesTypes of consultation neededTiming of consultation
Less than 20 employeesThe employer needs to consult with the employees individually. Within a suitable time. 
20-99 employeesConsultation is carried out collectively. As in every firm, there is an employee representative and the union representative. So! It is just that the employer needs to consult with the employer head or union head too. 

And in case no lead is there, then the employer needs to consult with the individual’s personality.  

30 days before the first dismissal. 
Above 100 employeesConsultation is carried out collectively. As in every firm, there is an employee representative and the union representative. So! It is just that the employer needs to consult with the employer head or union head too. 

And in case no lead is there, then the employer needs to consult with the individuals personally.

45 days before the first dismissal. 

  • Notice of Redundancy and appeals- The process and rules state that if you want to terminate your employee then the best way is to inform them about the same days before the termination. For this, the employer can write a letter to the employee whom they want to terminate informing them of the real reason for the termination. This will help them to find a new job or to appeal for their rights in case of disagreement. 
  • The termination process- According to the rules, being an employer you have to pay a statutory payment at the time of redundancy. Therefore, employees whose working period is more than two years are eligible for the payment. Also, in case the employee does not know about the redundancy payment or the calculation process then you must tell them about it. 

Also, sometimes things get worst due to a lack of communication. You cannot leave it just with a piece of notice. Rather it is needed that you keep in touch with your employees regularly. 

Since it’s on the employer to terminate you, therefore, being an employee it is also important for you to have sufficient information about your redundancy rights. Here is some information about it-

Redundancy Rights

The right to be selected fairly for redundancy

Sometimes the employer possesses favoritism while choosing the candidates for redundancy, but is it the right way? Not. The employer should be fair enough while making decisions and must make decisions based on the criteria like- working year, dedication, attendance, etc. Also, employers can go with the “last in first out” method of selection. 

Redundancy pay rights

As I said earlier, for people who have been working for more than two years, the employer has to pay them in case of redundancy. The stated redundancy pay rights are- 

  1. If the employee is of age 22, then the employer has to pay for 0.5 weeks for each year of service.
  2. If the employee is of age between 22 to 40, then the employer has to pay for 1 one week for each year of service.
  3. If the employee is of 41 years or more than that, then the employer has to pay for 1.5 years for each year of service.

 

The right to redundancy notice

Being an employer taking decisions about termination is not only your work, rather 

 You must tell your employee about the Redundancy. To know all the practices happening in the company is the right of every employee-employer needs to inform them with the help of notice years and days before the final day. It is said that the redundancy letter should be given based on the working period. 

The right to redundancy consultation

Every employee who has been terminated by their employers has the right to know about the cause of redundancy. In most cases, the consultation starts at least one month before the redundancy and is mostly done by the employee representative. 

Summary

Being an employee is not an easy cup of tea as sometimes you have to go through a redundancy process which could affect your source of income and happy living. By reading this article you will be able to know about redundancy, its process, your rights, and much more which will help you to overcome such situations and will also clear most of your doubts regarding redundancy. 

Thank You!