There are alternatives to redundancy
14/04/2009
Today many people are facing redundancy. Unfortunately, as employers look to save money, it is the more experienced, longer serving and more expensive employees (who may also be the older sections of the workforce) who often find themselves being targeted for selection.
Consultation process
Your employer is obliged to follow a fair process with regards to deciding who should be selected for redundancy.
The selection process must not be discriminatory. Selection should not be made on the grounds of age or because of some other factor (eg: cost) which means that older workers are disproportionately represented amongst those being made redundant.
Your employer should meet with you to explain the reasons why your position is at risk and to explore alternatives to redundancy.
If there are 20 to 99 people at risk of redundancy, an additional collective consultation should begin at least 30 days before the first person’s employment is terminated. If there are more than 100 people at risk, consultation should begin at least 90 days in advance. In either case, your employer should appoint employee representatives or Trade Union Representatives and arrange meetings with them to explore ways in which redundancies can be avoided.
Alternatives to redundancy
A recent report by Ipsos MORI on behalf of employment lawyers, Russell Jones & Walker, reveals that many of those facing redundancy are not being offered any alternatives to losing their jobs.
In the survey of 548 London workers, only 16% of those made redundant were offered alternatives such as pay cuts, part-time working, career breaks, job-sharing arrangements or shorter hours. This is despite the fact that 89% were prepared to consider such alternatives.
None of the respondents in the 54-65 age group were offered any alternative to redundancy at all. Although the number in this group were only a small sample size, this does reflect the picture we are seeing in practice.
Your employer is legally obliged to try and find you “suitable alternative employment” if it is able to do so. This includes not only a different job in the same geographic area, with a similar status or with similar terms, but also more junior roles or roles that might require some retraining.
Given the reluctance of some employers to be pro-active in seeking alternatives to redundancies, do not be afraid to make your own suggestions. Emphasise to your employer the benefits of holding on to experienced people.Consider with your colleagues whether, as a group, you would be willing to take a pay cut, work shorter hours or take a period of unpaid leave to relieve the financial pressure on your employer.
Consider what changes you would accept to your own terms. If you are thought too expensive, would you be willing to take a pay cut or to take on a more junior role? Make sure that your employer is aware of what you bring to the business, not just your cost.
Consider the package on offer
If, having explored the alternatives, you are still facing redundancy, you should look carefully at the redundancy package on offer.
Anyone made redundant is entitled to their contractual notice period. If you have been continuously employed for two or more years, you will also be entitled to a statutory redundancy payment, based on length of service and age. This will not be a large amount of money. However, some employers have contractual policies which provide for redundancy payments over and above the statutory minimum. If you might be the victim of discrimination, you may have additional rights too.
Finally, bear in mind that the first offer from your employer; might not be their best offer. If you are uncertain as to your position, seek advice.
Gemma Murray is a solicitor in the Employment Team at Russell Jones & Walker