Redundancy and Dismissal

Understanding Redundancy

Redundancy is when an employee’s job is no longer needed or the employer needs to reduce their workforce.
It is usually no reflection on the employee’s performance.
There are several reasons why redundancies might occur, including business restructuring, location changes, or cutting costs.

Criteria for Redundancy

Legitimate redundancy cannot generally be used if the employer is simply replacing the person with someone else.
When selecting members for redundancy, employers should consider fair and objective criteria.
Examples of these criteria could include: skills, qualifications, attendance and disciplinary records.

Rights of Redundant Employees

If an employee is made redundant, they may be eligible for redundancy pay if they have been working for the same employer for 2 years or more.
They should also receive a notice period, time off to find a new job, and a consultation with the employer.

Understanding Dismissal

Dismissal occurs when an employer decides to terminate an employee’s contract.
This might be due to various reasons including poor performance, gross misconduct, or statutory illegality.

Types of Dismissal

Fair Dismissal

If employers have a good reason for dismissing an employee and they follow their company’s formal process, this is known as fair dismissal.

Unfair Dismissal

If the employer does not have a good reason for dismissing an employee, or the proper procedures aren’t followed, this is considered an unfair dismissal.

Handling Dismissals

Before dismissing an employee, it is crucial that employers conduct a thorough investigation and give the employee a chance to respond.
The employer should also provide a clear reason for dismissal and offer the right to appeal.

Employee Rights after Dismissal

If an employee feels that they have been unfairly dismissed, they can take the issue to an employment tribunal.
In the case of unfair dismissal, they might be entitled to compensation or reinstatement.

Importance of Understanding Redundancy and Dismissal

It’s vital that both employers and employees understand the laws and rights related to redundancy and dismissal.
Proper handling of these processes ensures the respect of individual rights and maintains trust and understanding.
These concepts also form an essential part of HRM, thus helping create a fair and balanced working environment.