Let’s Talk About How Redundancy Affects Businesses


21 August 2020

By Alexandra Dean

We wrote at length about the burning questions relating to redundancy that employees have when facing the process and how they can handle it.

At the same time, we know that companies want to undertake the processes in the easiest and simplest way possible whilst causing the least distress and maintaining efficiency in the business. These are decisions that are being made behind the scenes and which cannot be forgotten about.

We are on hand to support businesses through the redundancy process, whether it is to provide the advice on the process and its requirements or perhaps assisting management to run the process from a more hands-on perspective. We are very happy to be client-led by understanding your business and your needs to tailor our services to you completely.

When do we need to notify the employees?

In most cases, the sooner the better. This means that as soon as there is a business case for redundancies, after all other options have been considered and exhausted, it is best to let employees know. Certainly, they must be advised that they are at risk, at least when the selection process commences.

What do I have to provide the employees affected during the process?

There are a number of key elements and things that must be provided to employees:

  • Notice pay;
  • Accrued but untaken annual leave;
  • Redundancy pay; and
  • Any other contractual benefits for the duration of their notice period; but

Some of the things that you must afford your employees are not strictly monetary:

  • Due consideration for suitable alternative roles within the business – do the employees have transferrable skills that can be useful elsewhere in the business before losing the existing talent that are within the workforce?
  • Reasonable and paid time off to seek alternative employment – legally, employees must have up to 40% of their working weeks as paid time off if they need it for the purpose of job hunting. This time would most likely be expended on attending interviews. An employer can give more time off than that, but it is not required for it to be paid.

Are there other options that are not redundancy?

Cost cutting is not just about reducing the workforce and sometimes there are other ways that a business can save on costs:

  • Are you tied into long contracts that you no longer require such as service contracts?
  • Would transferring part of the services and thus employees to another business made more commercial sense?
  • Perhaps a joint venture with another entity to share the costs of the work and utilise each other's skills?

We have the commercial expertise available to understand your business and explore those options with you, as well as ensure that your business is legally protected through the contracting process whichever way you choose to proceed.

Our expert employment team can assist you

Please do get in touch with us for a no-obligation initial conversation. Contact us on 01245 228141 or via e-mail 

This is not legal advice; it is intended to provide information of general interest about current legal issues.