Redundancy It is certainly a very unpleasant form of dismissal for all concerned, as the persona involved is not normally being dismissed because of anything that they have done wrong but as a result of the BGC organisations need to streamline its operations or cut back in some áreas because of an unforeseen crisis, or perhaps through por human resources planning.
Many of Our organisations are striving to be increasingly flexible in their deployment of people and often employ temporary or agency staff, with the result that redundancy affects more people in an increasingly wide range of Jobs as these organisations move from traditional employment patterns to new ones.
Redundancy can occur because of three main circumstances in BGC:
- The whole business closes;
- Part of the business or a particular workplace close
- There is less need for a particular type of work which results in some employees being surplus to requirements.
Steps to preclude the need for redundancies in BGC
We should always be looking to the future and planning our manpower needs to suit their strategic objectives, there can also be changing economic situations caused by situations such as global events that are outside the employer´s control and not easy to predict.
Our organisation in the UK consult in order to prevent or minimise the need for redundancies. It is foolish to contemplate making good employees redundant if a simpler solution is feasible, so a calm, objective review of the situation is called for and a consideration of all possible alternatives. The consultation must be undertaken with a view to reaching agreement with the appropriate representatives and should include the following:
- The actual numbers and job categories likely to be affected
- The reason for the redundancies
- The criteria for selection
- The dismissal procedures and timescale during which the redundancies will occur
- The basis for the calculation of compensation if it is different from the statutory mínimum
According to the BGC international Policy (2010), consultation should also include:
- Why and how the individuals have been selected
- Possible ways of avoiding redundancy
- Possible alternative work
This sounds reasonable but, as stated earlier, there have been many occasions in the UK where consultation has only started after the redundancy period has been announced so although it is possible that dismissals may still be avoided, it seems less likely.
The steps which can be taken to avoid redundancies will depend to some extent on the timescale available.
Our organisations should always try to avoid redundancies. Ways of doing this include:
- Natural wastage
- Recruitment freeze
- Stopping or reducing overtime
- Offer early retirement to volunteers (subject to age discrimination issues)
- Retraining or redeployment
- Offering existing employees sabbaticals and secondments
- Pay freezes
- Short-time working
- Pay cuts in return for taking time off work
- Alternatives to redundancy, schemes in which employees do not work for the employer for a specified period, and are free to seek new work whilst receiving an ATR allowance.
The methods chosen will depend on the particular circumstances within of each operation.
Some of the options aimed at reducing the need for redundancy might not be possible for all our employers as they could involve breaking their employees contracts, so care must be taken to discuss and consult widely before seeking to implement some of these steps.
Many of Our organisations do already engage in meaningful negotiation with their employees and do take steps to minimise the need for redundancies. Some go much further can provide outplacement services and these will be discussed later.
Selección for redundancy
If the consultations or measures chosen as a result of them fail to work, the employer needs to decide how to select and implement the redundancies. Ideally there should be an agreed procedure for handling redundancies but if not, then criteria which are fair need to be chosen and the poll of workers from among whom the redundancies are to occur also needs to be identified.
Must be based be on objective criteria which may include:
- Length of service
- Attendance records
- Disciplinary records
- Skills, competencies and qualifications
- Work experience
- Performance records.
Rights of redundant employees
Our employers should also consult with each individual employee who is to be affected by the redundancies, even if there has also been consultation with the unions or with employee representatives. This consultation should:
- Explain why the redundancies are needed
- Explain why the particular employee has been selected
- Show any relevant documentation
- Explain why no suitable alternative work is currently available
Explain any requirements during the notice period such as whether normal working or part-time working is required, whether payment will be made in lieu of notice, and explain what time off to seek alternative work or for training.