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Full Termination Redundancy pack

Redundancy plan

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Ensure fair, compliant, and transparent redundancy processes with our Redundancy Plan template, designed for UK employers to meet legal requirements.

Reading time
How long to understand and implement this template?
10 mins
Word count
How many words in this template?
544
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What is a Redundancy plan?

The purpose of a redundancy plan is to provide a structured framework for managing the redundancy process within an organisation. It helps ensure that redundancies are handled fairly, legally, and transparently while minimising the impact on affected employees.

The plan helps by:

  1. Establishing clear procedures and guidelines for selecting employees for redundancy based on objective criteria.
  2. Outlining the consultation process to engage with affected employees, address their concerns, and explore alternative options.
  3. Providing guidance on redeployment opportunities and support for affected employees in finding suitable alternative employment.
  4. Ensuring compliance with legal requirements, such as notice periods and redundancy payments.
  5. Offering an appeals process to allow employees to challenge redundancy decisions if they feel they have been treated unfairly.

The redundancy plan should be issued to all relevant stakeholders involved in the redundancy process, including management, HR personnel, and employee representatives or trade unions if applicable.

Best practice timescale for this to be issued
When should this template be issued?
At the earliest stage of the redundancy process, ensuring that all parties are aware of their roles and responsibilities and that the process is conducted in a fair and compliant manner
Issued by who, to whom
Who should issue this template, and to whom?
The Employer (you) to the Employee reps
Applicable legal jurisdiction
In which jurisdiction can this template be used?
Great Britain & NI (United Kingdom)

What legislation and best practice guidelines have been taken into account in the development of this template?

  • Employment Rights Act 1996: Provides statutory rights and protections for employees, including redundancy payments, notice periods, and the right to be consulted during the redundancy process.

  • Trade Union and Labour Relations (Consolidation) Act 1992: Sets out requirements for collective consultation with employee representatives or trade unions when planning redundancies affecting multiple employees.

  • Equality Act 2010: Prohibits discrimination based on protected characteristics, ensuring that redundancy decisions are made on fair and non-discriminatory grounds.

  • The Information and Consultation of Employees Regulations 2004: Requires employers to inform and consult with employees on matters that may lead to collective redundancies, ensuring their input and involvement in the process.

  • The Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014: Introduces additional consultation requirements for collective redundancies, including providing information to employee representatives and government authorities.

Redundancy plan

Introduction

This Redundancy Plan outlines the procedures and guidelines to be followed by [Company Name] in the event of redundancies. It is designed to ensure compliance with UK employment law requirements and promote fair and transparent redundancy processes.

Scope and Objectives

Scope

This plan applies to all employees of [Company Name] who may be affected by potential redundancies.

Objectives

  • To ensure fair and non-discriminatory redundancy selection processes.
  • To provide support and assistance to affected employees during the redundancy process.
  • To comply with legal obligations, including consultation requirements and redundancy payments.

Redundancy Selection Criteria

Selection Criteria

  • The selection of employees for redundancy will be based on objective and non-discriminatory criteria.
  • Consideration will be given to skills, qualifications, performance, disciplinary records, and any other relevant factors.
  • A scoring matrix may be used to assess employees against the criteria.

Consultation Process

Individual Consultation

  • Affected employees will be provided with individual consultations to discuss the redundancy situation.
  • The purpose of the consultation is to explain the reasons for the redundancy, explore alternative options, and address employee concerns.

Collective Consultation

  • If applicable, collective consultation will be carried out with employee representatives or trade unions.
  • This will involve providing information about the redundancy situation and engaging in meaningful dialogue.

Timelines for Consultation

  • Consultation periods will be determined based on the number of employees affected and the scale of the redundancy process.
  • Adequate time will be provided to allow for meaningful consultation and consideration of alternatives.

Redeployment and Alternative Employment

Redeployment Opportunities

  • [Company Name] will actively seek and consider suitable alternative employment opportunities within the company for affected employees.
  • Employees will be given access to available vacancies and provided support for applications, including training and re-skilling if necessary.

Redundancy Entitlements

Notice Periods

  • Redundant employees will be given the appropriate notice period as required by UK employment law.
  • Longer notice periods may be provided based on length of service or contractual obligations.

Redundancy Payments

  • Redundant employees will receive redundancy payments in accordance with UK redundancy legislation.
  • Payments will be calculated based on length of service, age, and weekly pay.

Employee Benefits and Support

  • [Company Name] will provide information and support to redundant employees regarding their entitlements to benefits, compensation, and job-seeking resources.
  • This may include guidance on accessing government support, career counseling, and assistance in updating CVs and job applications.

Appeals Process

Right to Appeal

  • Employees who are made redundant will have the right to appeal the decision.
  • The appeals process will provide a fair and impartial review of the redundancy decision.
  • Appeals must be submitted in writing within a specified timeframe.

Data Protection and Confidentiality

Data Protection

  • Personal data collected during the redundancy process will be handled in accordance with UK data protection laws.
  • Confidentiality of employee information will be maintained.

Review and Amendment

Review

  • This Redundancy Plan will be reviewed regularly to ensure compliance with changes in UK employment law and best practices.
  • Employee feedback and consultation outcomes will be considered for further improvements.

Signed: [Your Name]

Position: [Your Position]

[Company Name]

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redundancy plan