Volunteers for Redundancy?
As part of a fair redundancy process, an employer will need to consider whether to ask for volunteers for redundancy. This may not be feasible in all situations; however it can sometimes avoid the need for compulsory redundancies.
An employer does not have to offer voluntary redundancy to everyone, and it may be appropriate to restrict applications to certain parts of the business. If an employer decides to ask for volunteers, it needs to make clear that it may not accept all volunteers because of the needs of the business going forward.
If a business is considering asking for volunteers, it is a good idea to set out a procedure for volunteering and highlighting which areas of the business that volunteers may be accepted from. This means that the process is transparent and helps to avoid potential claims for e.g. discrimination, if an employee feels they have been unfairly treated because of a protected characteristic like gender, age or disability.
If a redundancy exercise affects twenty or more employees, an employer is under a duty to consult collectively for a period of either 30 or 45 days, with either trade union or elected employees’ representatives, which is likely to involve discussions about voluntary redundancies. Failure to consult on a collective basis can lead to protective awards of up to 90 days’ pay per affected employee.
It is also important to note, that even if an employee volunteers for redundancy, the employer still needs to consult with them on an individual basis in relation to their proposed redundancy, as failure to do so could lead to a claim for unfair dismissal.
If you require any further advice and assistance in relation to either voluntary or compulsory redundancies or employers’ duties in relation to collective and individual consultation, please contact the Baines Wilson Employment Team on 01228 552600.
© Cumbria Chamber of Commerce