Correct Redundancy Procedure

FarmallA

Morning All

I have one specific role in my company and it has become unsustainable so I need to make the role redundant.

As it is just one person, am I correct in thinking I still have go through the consultation period, even though I know and I am sure they will, that the role is redundant.

I am trying to minimize the stress for the person in that role so I don't see the point in dragging out the procedure.

Can I just call the person in, issue them a Compromise Agreement and we all make a clean break?

If so, can I use an old compromise agreement or does it have to be prepared by a Solicitor?

Many Thanks

getmore4less

How much of a surprise is it going to be.

Why do you need a settlement agreement if this is a genuine redundancy?

Should always consult to see if the person has ideas to make the job viable or there are alternatives.
consultations does not have to be too long.

Put the package on the table the more enhanced it is over statutory the more palatable the exit will be.

Offering PILON/garden leave and support finding a new job(like use of phones and facilities all help.

If you want a settlement agreement then that will need negotiating and you should pay for the employee to get legal advice.

sangie595

I am assuming you are a small employer and that there have been no other redundancies of any sort.

In which case the consultation period only has to be long enough to be meaningful. If there are genuine no other jobs available for this person, then an opportunity, say a couple of days, to think about it and make any suggestions or comments is quite acceptable. But you must be prepared to discuss this (consultation is two way) and this person may have some thoughts you haven't considered.

At the end of that, you simply need to be fair - give them their notice period (or pay in lieu - this can be paid tax free if it isn't in their contract that they get it in lieu, and that's good for them and costs you nothing). If they must work their notice, give them time to search for another job. Then pay them everything (including any holiday pay owed) they are owed. You don't need a compromise agreement (they are called settlement agreements now) unless you plan to be unfair about all this. But if you insist on this, then (a) you should pay for the employee to have legal advice and it is usual to offer them a sweetener to sign, otherwise they have no reason to want to, and in fact, would be ill-advised to do so and (b)you should not reuse one - you should make sure that you have been properly advised on the circumstances that you are in, not the ones that you were in some time in the past.

FarmallA

getmore4less wrote: »

How much of a surprise is it going to be.

Why do you need a settlement agreement if this is a genuine redundancy?

Should always consult to see if the person has ideas to make the job viable or there are alternatives.
consultations does not have to be too long.

Put the package on the table the more enhanced it is over statutory the more palatable the exit will be.

Offering PILON/garden leave and support finding a new job(like use of phones and facilities all help.

If you want a settlement agreement then that will need negotiating and you should pay for the employee to get legal advice.

I was informed by another source that a Settlement Agreement would suffice, instead of a consultation period.
To be honest, this role was never that fulfilled but up until a few months ago, the business was flying so we could support it and because I do not want to make any role redundant as it will be horrible for the person in the role.
Even when we were extremely busy, the role was never filled 100% of the time.
It shouldn't be a surprise but it might be as the person in the role isn't particularly astute.
I will go ahead with the consultation period and keep it as short as possible. Say about 4 days, so begin on Monday morning and have the final meeting on a Friday.

It does seem silly though because the person will spend the whole week worrying about it and having to sit in the office twiddling their thumbs.
Due to the nature of the business, there is literally nothing else that this person could do. This is the only non-specialist role within the business.

I am sorry to have to be doing it and I have prepared a generous package which is 2 weeks more money than they are entitled to and gardening leave during notice period so they will effectively get 12 weeks / 3 months money, I will also assist with job hunting and will write a glowing reference for a prospective employee.

FarmallA

sangie595 wrote: »

I am assuming you are a small employer and that there have been no other redundancies of any sort.

In which case the consultation period only has to be long enough to be meaningful. If there are genuine no other jobs available for this person, then an opportunity, say a couple of days, to think about it and make any suggestions or comments is quite acceptable. But you must be prepared to discuss this (consultation is two way) and this person may have some thoughts you haven't considered.

At the end of that, you simply need to be fair - give them their notice period (or pay in lieu - this can be paid tax free if it isn't in their contract that they get it in lieu, and that's good for them and costs you nothing). If they must work their notice, give them time to search for another job. Then pay them everything (including any holiday pay owed) they are owed. You don't need a compromise agreement (they are called settlement agreements now) unless you plan to be unfair about all this. But if you insist on this, then (a) you should pay for the employee to have legal advice and it is usual to offer them a sweetener to sign, otherwise they have no reason to want to, and in fact, would be ill-advised to do so and (b)you should not reuse one - you should make sure that you have been properly advised on the circumstances that you are in, not the ones that you were in some time in the past.

There are 6 of us in the UK office and the other 5 of us are specialists in our field. This is the only non-specialist role in the business.
Thanks for your reply, as I have replied on another thread, I am going to be extremely fair with the package.
Just wanted to see if there was another option to dragging out the procedure.
This person within the role is extremely sensitive and is likely to break down so it would be nice if i could allow them to be at home during the consultation period. Is that possible?

TBagpuss

Well, the point of the consultatin period is to consult.

It sounds as though in this case the employee is in a pool of one, so it is not a case of deciding which person to make redundant, it's about whether there is a suitable alternative role or whether they can come up with any suggestins to make the role viable.

I don't see that there would be any reason why you could not offer the person a paid day off after you initially advicse them they are t risk, to give them the opportunity to consider what you've told them, and to prepare for your individual consulation meeting. Hpwever, i'd suggest that you make this an offer - they may prefer to come in rather than sitting at home worrying

http://www.acas.org.uk/index.aspx?articleid=4551

sangie595

FarmallA wrote: »

This person within the role is extremely sensitive and is likely to break down so it would be nice if i could allow them to be at home during the consultation period. Is that possible?

I agree with the previous poster. Make it a choice for them, but actually, this is quite common for people to offer the time paid but not in work. If you are happy with that arrangement, the choice is the kindest thing to give them.

getmore4less

sangie595 wrote: »

At the end of that, you simply need to be fair - give them their notice period (or pay in lieu - this can be paid tax free if it isn't in their contract that they get it in lieu, and that's good for them and costs you nothing). .

You can actually save money because where PILON can be paid tax free you only have to pay the net amount.

Not all employers are that mean.

getmore4less

FarmallA wrote: »

I was informed by another source that a Settlement Agreement would suffice, instead of a consultation period.
To be honest, this role was never that fulfilled but up until a few months ago, the business was flying so we could support it and because I do not want to make any role redundant as it will be horrible for the person in the role.
Even when we were extremely busy, the role was never filled 100% of the time.
It shouldn't be a surprise but it might be as the person in the role isn't particularly astute.
I will go ahead with the consultation period and keep it as short as possible. Say about 4 days, so begin on Monday morning and have the final meeting on a Friday.

It does seem silly though because the person will spend the whole week worrying about it and having to sit in the office twiddling their thumbs.
Due to the nature of the business, there is literally nothing else that this person could do. This is the only non-specialist role within the business.

I am sorry to have to be doing it and I have prepared a generous package which is 2 weeks more money than they are entitled to and gardening leave during notice period so they will effectively get 12 weeks / 3 months money, I will also assist with job hunting and will write a glowing reference for a prospective employee.

If there is nothing else for them and the remaining tasks can be fulfilled by others then I would cut to the chase rather than drag it out a week.

Friday might be better giving them a weekend to think about it.

Lay it out on the table(think about the wording),
Thanks for your service but as you know there is no work for you to do so we have to make you redundant we plan to terminate the contract next Friday(waffle about consultation and to let you know if there is any alternative they would like you to consider) offer garden leave for the week if the handover can be done quickly
Perhaps ask them to come in Monday if they have any questions and to tidy up loose ends.

This is the package go for PILON not garden leave, makes the decision much clearer an cleaner.

Lay the package out in detail including accrued untaken holiday.

Pay it promptly.

how long have they been with you?