Redundancy process – Covid-19 – June 6th 2020

With the announcement that the Coronavirus Job Retention or ‘Furlough’ scheme is to be phased out, employers who have been using this will be thinking about their next steps. Unfortunately, for some it will mean making redundancies.  The process for redundancies has not changed because of Coronavirus, however, the way in which we communicate with each other has. It is so important that employers communicate openly and honestly with employees through any consultation process when informing about the potential risk of redundancy.

With social distancing in place, it will be hard to meet and consult with individuals when communicating the news of potential redundancies. Employers should use the telephone or video calls for individual meetings and when there is a group of employees to consult with using telephone conferencing or group video calls.

It is vitally important that all other options are explored thoroughly prior to any redundancy process commencing.  Social distancing adds a further element of complexity in achieving a ‘meaningful and fair consultation process’ and avoiding unfair redundancy Employment Tribunal claims.

The maximum amount that an employee can be awarded as compensation for Unfair Dismissal is presently the statutory cap of £88,519, or 52 weeks gross salary- whichever is the lower. This is in addition to the basic award which can be ordered by the Tribunal of up to a maximum of £16,140. These figures are accurate from 6th April 2020, therefore it is critically important your redundancies and the redundancy process are handled correctly.

Further advice

Making fair redundancies and the redundancy process can be a complex issue, and it is very important to take the right measures and process to avoid costly Employment Tribunal Claims.  For more advice and assistance with varying contracts of employment, please get in touch with our Employment Law Solicitor Sasha Brine by calling 07475069698.