As the year draws to a close, many businesses take stock and plan for the future. For some, this might include considering redundancies ahead of the New Year. If your business is facing this situation, you may have additional concerns specific to the festive season. Below, we address three common Christmas and redundancy-related questions.
Should I Wait Until After Christmas to Make Redundancies?
Many businesses wrestle with the decision of whether to begin a redundancy consultation process before Christmas or wait until the New Year. Common concerns include:
- Impact on employees: Emotionally, redundancies can dampen the festive spirit and financially strain employees during an expensive time of year.
- Pressure on managers: The process is challenging at any time but can feel particularly difficult amidst a season of joy and celebration.
- Public perception: There may be worries about how the timing of redundancies could affect the business’s reputation.
Ultimately, the best course of action depends on your business’s circumstances, but keep the following in mind:
- Redundancies are often stressful for all involved, regardless of timing.
- Legally, businesses must consult with employees at an early stage—before any final decisions are made. Delaying could compromise the fairness of the process.
- The redundancy process takes time. For small-scale redundancies, this typically involves individual consultation meetings with at-risk employees and the use of selection matrices to ensure fair decision-making.
A reasonable consultation period varies depending on factors like the number of employees at risk and whether selection is required. Balancing this with business needs is crucial.
If redundancies are unavoidable during the festive period, ensure fairness and reasonableness—just as you would at any other time of the year.
My Business is Closed Over Christmas. Will This Affect My Redundancy Consultation Period?
If your business closure overlaps with a redundancy consultation period, this needs careful planning. Outside collective redundancies (where 20 or more redundancies are proposed within 90 days at one establishment), there is no set consultation timescale. However, the process must allow for meaningful consultation.
For example:
- For smaller selection pools (e.g., 3-6 employees), a two-week consultation period may be reasonable. However, if your business is closed for one of those weeks, extending the period will likely be necessary.
Employees with two years’ service or more can challenge redundancy dismissals they believe were unfair. Ensuring an appropriate consultation period is essential to mitigate this risk.
If you need advice on redundancy timescales, please contact us.
I Want to Resolve This Quickly. Is There an Alternative to a Full Redundancy Consultation Process?
Depending on your situation, alternatives may be available:
- Employees with short service: Employees with less than two years’ service are not eligible for ordinary unfair dismissal claims. This might allow redundancies without a full consultation process. However, always seek advice, as employees may still bring claims (e.g., discrimination or dismissal for a prohibited reason, such as pregnancy or family leave).
- Settlement agreements: These legally binding contracts between employer and employee can prevent employees from bringing certain claims to a tribunal. In redundancy situations, they may save time if employees are willing to agree.Typically, settlement agreements include a payment from the employer to the employee. If offering enhanced payments for voluntary redundancy, these agreements often formalise the arrangement. For a settlement agreement to be legally binding, specific requirements must be met, so professional guidance is essential.
If you are considering settlement agreements, please reach out for tailored advice.
If your business is facing potential redundancies or needs support with any HR matter, please get in touch. We are here to help.