September 2, 2020

redundancy on furlough

Making redundancies as a business owner or manager is a complicated process and there are a number of considerations to make sure you don’t face legal action from employees. Remember that redundancy is still Dismissal and is covered by current legislation and good practice.

If you have any doubts about how to go about redundancies and what your options are, then it's a good idea to seek expert advice from HR and employment specialists. LBJ consultants can manage the process for you end to end. Contact us here to find out how.

Redundancy Checklist

  • Provide redundancy selection criteria that demonstrates you are not discriminating.
  • Determine if redundancy pooling is necessary for your business (it may not be for smaller businesses).
  • Create templates for redundancy meetings to ensure meetings are conducted properly.
  • Create a “redundancy plan”.
  • Provide a redundancy matrix with clear, fair parameters.
  • Get advice on alternatives to redundancy including reduction of pay and shorter hours.
  • Create a redundancy forum where people can ask and answer questions about redundancy.

  1. Staff who have been furloughed are still entitled to be treated fairly and consultation is still required if they are facing redundancy.
  2. Remember to include all relevant staff in your consultation, including staff on secondment, maternity leave or long- term sick.
  3. Maternity leave must not be part of the reason for redundancy as this could be breaking the law. You’ll need to provide redundancy selection criteria that is fair and non-discriminatory.
  4. Redundancy pools are groups of employees from which redundant staff will be selected. Defining a Genuine redundancy pool correctly can be the first step to a fair process.  
  5. Employers must consider alternatives to redundancy during the consultation period for it to be a true Consultation. Templates for Consultation meetings ensure a fair, consistent process. LBJ Consultants can provide template letters for all your needs during a Redundancy process. The legislation surrounding redundancy can be tricky, contact us, enquiries@lbjconsultants.co.uk
  6. Redundancy plans ensure that you manage each stage of the redundancy process. We can help you prepare your plan and advise on working with staff representatives in a positive, mutually beneficial way.

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7. Employers should resist “bumping” redundancies where an employee not at risk is made redundant. This can result in a claim for Discrimination through an Employment Tribunal.

Alternatives to redundancy

We can advise on alternatives to redundancy including reduction of pay and shorter hours. Employees in the redundancy pool are scored against the criteria and this clearly identifies who is selected for Redundancy.

8. It is helpful for employees and managers to have access to a Question and Answer forum during redundancy. We can provide either online or telephone support for your forum.

Unfair selection for redundancy can result in an employee raising an Employment Tribunal claim.

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