Coronavirus and Redundancies

The current uncertainty, reduced demand and enforced closures following the Coronavirus pandemic are forcing businesses to change the way they operate.

Many organisations are making extremely difficult decisions in order to ensure the long term operation of their business. Unfortunately, one such decision is whether you need to make staff redundant.

If you are unfortunately an employer that needs to make redundancies as a result of Coronavirus, it is essential that the correct procedures are followed. Making redundancies may seem like a straightforward way to save costs. But you could be faced with large compensation claims that outweigh savings if policies are not adhered to.

Even in these unprecedented times, a fair redundancy selection and consultation process must be followed.

This includes establishing a fair selection process that establishes groups of employees for redundancy, fairly conducting the process, considering alternative employment and consulting with the affected employees. It is essential that the selection process must be objective and does not discriminate on protected characteristics or personal preference.

If you need to make more than 20 members of staff redundant then you must consult with either a union representative or an employee elected representative. The consultation must begin at least 30 days before the first dismissal, if you are making 100+ employees redundant this period increases to 45 days.

The affected employees must be given the correct notice, either the statutory notice period or the notice outlined in their contract of employment.

For more information on the risks of unfair dismissal claims against redundancies made in the Coronavirus crisis, contact Parrott & Coales on 01296 318 500 or email