Redundancy can create difficult situations and conversations in your organisation.
You should think about how to support:
- employees at risk of redundancy
- managers who are breaking the news
- the people leading the consultation
- employee representatives
- those staying on
You can support staff by providing:
- additional face-to-face meetings
- help getting financial advice
- clear plans for the future
- time off for those selected for redundancy to look for new jobs or get training
It's often forgotten that those staying on experience stress from seeing colleagues and friends being made redundant. They'll also be part of a changing workplace and might feel uncertain about what the work and their roles will look like in future.
Help staff find another job or training
You must allow employees you've made redundant a reasonable amount of time off during their notice period to look for another job or to do training.
This applies if the employee has worked for you for 2 full years or more (including the notice period).
Paid time off for training or to look for another job
You do not have to pay more than 40% of a week's pay, no matter how much time off you allow for these reasons during the notice period.
Robyn has been selected for redundancy. Their normal pay is £500 for a 5-day working week.
They take a total of 5 days off to apply for new jobs during their notice period.
Their pay for this time off would be £200 (40% of their weekly pay).
The contract may say that you pay more than this, or if it's not in the contract, you can choose to pay more. Either way, you should treat everyone the same.
Organisations that can help
You can support employees with finding another job or training by signposting them to the following organisations.
The Jobcentre Plus Rapid Response Service can:
- help people get back into work and with writing or updating CVs
- give you useful information about finding work to pass on to your staff
The Partnership Action for Continuing Employment (PACE) is a Scottish government service that supports those dealing with redundancy. Employers and employees can get free, confidential advice.
The Welsh Government runs a programme called ReAct that provides guidance to help people gain new skills and find employment after redundancy.