Redundancy always delicate
Virtually all managers dislike handling redundancies. There is nearly always tension involved and it is absolutely not easy.
However, when handled properly, redundancy can be a realistic response to labour force situations that organisations find themselves in.
One of the first questions is “are the correct people being selected?” If not, unfair dismissal claims can arise. For the selection process to be fair for all parties (and to give managers a later defence if it becomes necessary), it is important to have a clear set of criteria, written and kept on file.
Where there are large numbers of employees being made redundant, the employer may have a duty to consult with Trade Unions and even, in certain circumstances, to consult with the community. Failure to take these sort of steps, can render even potentially fair redundancy procedures questionable in the eyes of many.
In fact, a genuine redundancy only arises when either there has been, or is going to be:
- A cessation of business
- A cessation of business at the employee’s site
- A reduction or cessation of work.
In more recent times, the primary reasons for making redundancies are listed as reorganised working methods and efficiency or improved competitiveness.
Even during expansion, redundancies can occur if specific work is disbanded. In a substantial minority of cases, redundancies are not accompanied by falls in total staff numbers and have either no effect on total numbers or are more than offset by recruitment.
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Confusion may arise because ‘making someone redundant' is often used as an euphemism for saying an employee is being dismissed for some reason other than redundancy. |
While the idea of redundancy is as emotive as ever, it can be argued that technically its meaning has been modified, and that it is now more about employment ending due to no fault of the employee – a much wider definition than in years gone by.
There would appear to be a degree of acceptance, today, regarding the inevitability of redundancy as a workplace phenomenon. After all, it is well known that one of the strands of human resource strategy embraces the notion of organisations working with fewer, but more effective, people.
Most professionally run organisations, go out of their way to implement redundancies with humanness and dignity.
The website for the University of Western Australia, announces the University’s policy on redundancies for all to see:
When the position held by a member of staff, on a tenurable/tenured, on-going or fixed term contract, ceases to exist or becomes surplus to requirements, the job is declared redundant. This results in a range of alternative career options for affected staff (see Part B – 41.6) and requires a review and assessment of existing structures and responsibilities within the affected area.
“The University of Western Australia is committed to ensuring that all staff without a position as a result of redundancy and, therefore, facing career change, will be provided with assistance to re-establish themselves.
The immediate day-to-day management for individual cases is the direct responsibility of the relevant head of school or supervisor.
It is the responsibility of affected staff, to take advantage of the range of support mechanisms available to help them evaluate the options they may have.
In general this requires that they:
- Identify their skills and career preferences;
- Gather information about available options; and
- Develop and implement an action plan to effect the preferred option.”
Like the University, countless employers today, exceed their statutory obligations when managing a redundancy exercise. Commonly there are efforts to redeploy staff, enhance severance terms and arrange substantial outplacement assistance.
The list of things for an employer to consider include:
- Statutory consultation requirements;
- Undertaking individual consultation;
- The employer's obligations to employees facing redundancy; and
- Statutory and voluntary information requirements.
