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Redundancy Procedure

The Grueling Task Of Redundancy

Redundancy ProceduresWhenever we hear the term Redundancy, it sends shivers across the corporate world. This is because no one, neither the employers nor the employees like the concept and practice of redundancy. It is the least popular exercise that anyone in the corporate world could wish of, because it involves a lot of financial and emotional pain.

The main cause behind redundancy is often cited as an economic slowdown. This happens when businesses start to suffer from falling sales and their profits start falling as a result. This can mean huge losses for businesses, especially those with a lot of staff, for the fixed cost that goes off in terms of salaries thus becomes unbearable. Certain businesses therefore start to downsize and make their employees redundant. Redundancy can also be caused due to a shift in the economic structure of an economy.

If an economy is labor intensive but a shift towards using technology takes place, the economy becomes machine intensive and most of the labor force is made redundant. Redundancy can also happen due to the fact that a certain business is being closed off. No matter what the cause behind the redundancy is, the Redundancy Procedure is always grueling and tiresome.

In order to carry out a proper Redundancy Procedure, an employer has to go through a lot of difficulties. The employer has to first notify certain authorities that it wishes to exercise a downsizing plan and plans to make a certain section of its workforce redundant. This is then followed by detailed meetings with the trade union that is representing the employees so identified and the employer cannot move further until he has convinced the trade union that the Redundancy Procedure will be carried out fairly and without bias to anyone.

Redundant policy Procedure After such proceedings have taken place, the employers must call a meeting of the section of employees that it wants to be made redundant and inform them of the decision that it wishes to take. Then, in consultation with the employees, the employer must arrive at criteria that are suitable enough to be applied to individual employees for redundancy to take place. Thus, when the Redundancy Procedure starts to take place, it must be monitored to be fair, consistent and unbiased.
Redundant policy Procedure It is the duty of the employer to provide all redundant employees with a redundancy pay that they are entitled to if they are more than eighteen years of age and have served the employer for more than two years in a continuous employment. Such a pay is given to the employee in a lump sum and is calculated on the basis of the age band of the employee, the weekly wage that he or she used to draw and the complete years that he or she remained in employment.
Redundant policy Procedure There is another duty of the employer, that it would also help the employees to cope with the stress and emotional fatigue that results due to the implementation of a strict Redundancy Procedure, and to help the employee find alternative employment for him or herself. Having said this, there is no doubt that the process of redundancy is liked by no one.









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