Opinion: Getting redundancies right

Stability in the job market is wavering. Photo / Andrey Popov / 123rf

OPINION

The decision to initiate redundancies rests with the employer, who must act fairly and reasonably. Getting the process wrong can be very costly for the employer, Edmunds Judd associate, Fiona Jack writes.

Employment stability concerns are rising due to the current financial climate, leading to an increase in redundancies.

Redundancy happens when a business discontinues a role.

The termination of someone’s employment requires a legitimate business reason from the employer, and the redundancy process cannot be misused.

They usually occur because the business is closing down or restructuring.

It cannot be used to terminate for poor performance.

The decision to initiate redundancies rests with the employer, who must act fairly and reasonably.

There are important steps that the employer must follow.

These steps consist of providing employees with ample notice of a potential redundancy and engaging in a consultation process.

The employer must start the process without any preconceived outcome.

Employees should be given all relevant information regarding the proposal.

They are allowed to review that information and have their input considered by the employer in the decision-making process.

Getting the process wrong can be very costly for the employer.

If a concern is raised about the redundancy, the Employment Relations Authority may investigate the redundancy and its process.

Some of the areas they consider are whether the employer had a genuine reason to instigate the process, whether the employer acted in a way that a fair and reasonable employer should act, whether the consultation process was correctly carried out and whether the employer offered counselling, career or financial advice to assist the employee dealing with the redundancy possibility and its outcome.

The possibility of redundancy is stressful for everybody.

If an employer is considering making redundancies within their business, they are undoubtedly going through difficult times, and the majority are well aware of the effect their choice will have on their employees.

Employees find it upsetting as the process is extremely disruptive and it cannot be overstated how difficult life becomes for those who are laid off.

Businesses are being impacted by the cost-of-living crisis, and more layoffs are inevitable.

We suggest that anyone who will be impacted by redundancy seek assistance.

Your solicitor will be able to provide this assistance to you; for businesses to ensure that your procedures are correct and for employees to ensure that you are being treated fairly.