Navigating Redundancy

Redundancy is a difficult situation for both employers and employees. It occurs when an employer reduces their workforce because a position or positions are no longer needed. It is important to note that it is the position, not the employee, that is no longer needed. Therefore, if an employee loses their position and is then replaced by someone else in the same position, the redundancy is very likely to be unjustifiable.

 

Employers must follow a proper and fair process and exhaust all redeployment options before any positions are made redundant. The reasons for the redundancy must be genuine. This process is known as the workplace change process. Employers cannot make someone redundant without going through this process first.

 

The workplace change process outline requires that notice must be given by one party (the employee or employer) to the other party. Redundancy is a last option and should only happen after all redeployment options have been exhausted.

 

When an employer advises an employee that they have not been successful in the redeployment process, they should make sure that the employee is offered at least all of the support that is mentioned in the employment agreement or policies and/or has been mentioned in the change proposal. This includes checking that all redeployment and alternative options have been worked through with the employee, rechecking this with the employee, checking the date the job is to be disestablished, and considering whether the employee is agreeable to continue working for a while and take redundancy later. Employers should also offer counseling support, outplacement support which may include CV or Resume support, interview skills training, other training that may improve the employee's chances of future employment, and career advice.

 

The notice period must be at least the length of notice referred to in the employment agreement or workplace policies. If the employee agrees, the employer may give an extended notice period while they continue in their role, or in a special project of some sort, while the change implementation is completed (or as agreed). This can allow for other redeployment opportunities to be explored. However, the employee does not have to agree to a later date.

 

Notice of redundancy must be given in accordance with the employee’s agreement. If there is no specific clause in an employment agreement giving a period of notice in a redundancy situation, ‘reasonable notice’ must be given. The length of ‘reasonable notice’ depends on a variety of factors, such as the reason for the redundancy, the employee’s length of service, the employee’s seniority and/or remuneration package, custom, practice and industry norms, the employee’s ability to find alternative employment, and the amount of compensation being paid (if any).

 

Employers must also remember that unused annual leave and salary, along with any other entitlements, up to the end date is payable. The notice of termination of employment must be given in accordance with the employee’s agreement. Employers should consider whether they want the employee to work the notice or be paid their notice.

 

Whether employees receive redundancy payments is dependent on the applicable employment agreements and is a matter for negotiation between the parties. However, all employees whose employment is ending due to redundancy must be given notice in terms of the employment agreement. An employer can require an employee to work out their notice. If an employment agreement mentions redundancy pay, the employer will have to pay for the redundancy. However, if an employment agreement doesn't mention any such clause, an employee isn't legally entitled to redundancy pay.

 

In conclusion, redundancy is a difficult situation for both employers and employees. Employers must follow a proper and fair process, exhaust all redeployment options, and provide support to employees throughout the process.  Employees facing redundancy should familiarize themselves with the workplace change process and their rights under the employment agreement or workplace policies. They should also be aware of the support available to them during the process, including redeployment options and outplacement support. It is also important for employees to be aware of the notice period and final payments they are entitled to, as well as the possibility of redundancy compensation. To ensure that the process is fair and justifiable, employees should raise any concerns or issues they have with their employer and consider using the Early Resolution Service to resolve any workplace issues early and informally. Additionally, employees facing redundancy may want to consider seeking legal advice or consulting with a union representative.