Redundancy during Furlough

When dealing with any redundancy, my first thought is always, ‘this is someone’s life you are turning upside down, be kind, be considerate, be fair’. 

It is a distressing time for everyone and we work with clients to make the process less problematic and to safeguard against the legal pitfalls.  We create a redundancy plan and manage the process fairly, adhering to the strict guidelines set out by the Govt.

Redundancy rights have not diminished because of the Coronavirus.  The rules may seem complex and time-consuming but they are in place to protect you and the employee.

Communication – is key to a fair process and we advise employers to keep everyone in the organisation informed of a possible redundancy situation, whether they are ‘at risk’ or not.

Redundancy Selection – take care to select carefully, it is important to place those working in the same or similar roles in the ‘pool of selection’. Do not be tempted to just dismiss everyone who is currently furloughed, as this is likely to be unfair or discriminatory in the eyes of an employment tribunal.  If you are considering redundancies and you have people who are doing the same or a similar job, they should be placed in the pool of selection, regardless of whether they have been furloughed or not.

If you are operating your business from more than one location and there are employees carrying out the same or similar roles, then you may also have to consider placing them into the selection pool.

Consultation – as an employer, you must consult with your employees as the rules on consultation have not changed.  You must meet with those affected by redundancy before making the decision, even if this means holding the meeting via a video link or by phone.

Alternatives to Redundancy – always consider if you can offer alternative employment before making a redundancy and, carefully consider if Furloughing your employee is an option before making the decision.

You must provide the correct notice period and the employee must be paid their full salary during the notice period, not 80%.  Calculate the redundancy figure and work out any outstanding holiday pay, which is also paid at 100% of their usual pay and not based upon 80% furlough.

Call Active HR for advice on 07798 788719 or email jane.rodger@activehr.org