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N74. Redundancy

Policy Statement

While it is {{org_field_name}}’s intention to develop and expand its business activities and thus provide a stable work environment and reasonable security of employment for its employees, it must ensure the economic viability of the enterprise in an increasingly competitive business environment.

In this respect, circumstances may arise where changes in the market, technology, organisational requirements and the like, necessitate the need for redundancies. In order to minimise the impact of such reductions, the following procedure will be adopted wherever possible.

It must, however, be recognised that where the needs of {{org_field_name}} so dictate, the procedure may be adapted to the particular circumstances which prevail.

Procedure

1. Where the need arises for a reduction in the size of the workforce, management will enter into consultations with _________ (trade union) or _________ (existing elected body) with a view to establishing whether the proposed job losses can be achieved by means other than compulsory redundancies. Consideration will be given specifically to the following alternative options, subject to {{org_field_name}}’s immediate business considerations:

a. imposing an immediate ban on further recruitment of new staff, other than where this is essential
b. considering redeployment and/or retraining of surplus personnel
c. restricting the use of subcontract labour, and temporary and casual staff
d. reducing the amount of overtime working in {{org_field_name}}
e. the implementation of temporary lay off, short-time working, job-sharing, etc where appropriate
f. inviting applications for consideration for early retirement and/or voluntary redundancy

Alternative Clause(s)

Where the possibility of a reduction in the size of the workforce by 20 or more employees at a single workplace arises and there is no recognised trade union or elected employee body, management will invite affected employees to nominate and elect representatives to take part in consultations about possible redundancies. Facilities will be provided to allow candidates to canvass affected employees and for an election to take place. Sufficient time will be allowed before consultation commences to ensure that the election is properly conducted. As soon as possible after the results of the election are known, management will enter into consultation with the elected representatives with a view to establishing whether the proposed losses can be achieved by means other than compulsory redundancies. Consideration will be given specifically to the following alternative options subject to {{org_field_name}}’s immediate business considerations:

– imposing an immediate ban on further recruitment of new staff other than where this is essential
– considering redeployment and/or retraining of surplus personnel
– restricting the use of subcontract labour, and temporary and casual staff
– reducing the amount of overtime working in {{org_field_name}}
– the implementation of temporary lay-off, short-time working, job sharing, etc where appropriate
– inviting applications for consideration for early retirement and/or voluntary redundancy.

2. Where, after due consideration of these alternatives, management considers that the need for redundancies still remains, management will give to employee representatives written details of their proposals. Criteria for selection will be agreed with the representatives. A provisional selection for redundancy will then be made by in consultation with on the following basis _ subject always to {{org_field_name}}’s need to retain specific knowledge and skills and a balanced workforce.
3. As far in advance of the proposed termination date as possible management will notify all employees that compulsory redundancies are proposed and the proposed method of selection. Management will then enter into immediate consultation on an individual basis with those employees likely to be selected for redundancy and with any other employees who are likely to be affected by the redundancies. The employer will write to each affected employee explaining the circumstances and inviting them to attend a meeting. In the course of this consultation meeting, employees will be informed of the selection criteria and invited to make representations on the proposed dismissals.
4. Management will take due note of and will give full consideration to any such representations before a confirmed selection for redundancy is made by in consultation with .
5. Where selection has been confirmed, those selected for redundancy will be given notice of termination in accordance with contractual entitlements. (In certain circumstances where it is considered appropriate and subject to (6) below employees may leave with payment in lieu of notice.)
6. Management will make every effort to seek suitable alternative employment within {{org_field_name}} for those under notice of redundancy and, where this exists, to consider redundant employees for suitable vacancies. All redundant employees will be interviewed individually by _ to inform them of any available vacancies, to establish individual requirements and to consider employees’ suitability for particular jobs.
7. In the course of individual consultation employees will also be informed of any entitlements they may have to redundancy payments in accordance with the statutory redundancy payments scheme and/or any company scheme.
8. Where alternative vacancies are offered to redundant employees the terms and conditions which will apply will be in accordance with:
   a. the standard terms for the job in question, or
   b. those which applied to the employee in the redundant job.
   Redundant employees who accept alternative employment with {{org_field_name}} will be entitled to a statutory four-week trial period.
9. Subject to {{org_field_name}}’s operational needs, employees will be given permission to take paid time off work during their notice period to look for work or seek retraining opportunities in accordance with current legislation. Requests for time off should be made in the first instance to .
   {{org_field_name}} will also endeavour to assist employees for whom alternative work cannot be found in {{org_field_name}} to find other employment outside {{org_field_name}}. Individual counselling with , provision of resources, eg typing, stationery, etc will also be made available to employees.
10. Compensation for loss of employment due to redundancy will be in accordance with statutory entitlement laid down in existing legislation. Statutory redundancy payments are based on an employee’s rate of pay, age and length of service.
    All employees who receive redundancy payments will be given a written notification of the way in which their redundancy pay has been calculated.

Where fewer than 20 redundancy dismissals are proposed within a 90-day period at any single workplace, {{org_field_name}}, although not under a duty to carry out collective consultation, will nevertheless consult each affected employee individually before any final selections are made. Each individual whose job is at risk of redundancy will be given a full opportunity at a meeting to express their views/objections to the employer’s proposals and make representations.

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Reviewed on: {{last_update_date}}