Redundancy can create difficult situations and conversations in your organisation. It's important to support those affected.
Redundancy only applies to those with the legal status of employee.
Someone is not likely to be an employee if they're:
- an agency worker
- a casual worker
- on a zero-hours contract
How to support employees
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 employees by providing:
- counselling
- 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 arrange training
Employees who are staying might 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 employees find another job or training
You must allow employees you've made redundant to request a reasonable amount of time off during their notice period to:
- look for another job
- arrange training
This applies if the employee has worked for you continuously for 2 years or more, including the notice period.
How much time they need will depend on their individual circumstances, including:
- how difficult it will be for them to find work
- the length of their notice period
You can only refuse an employee's request for time off if you have reasonable grounds. It's a good idea to talk to them about:
- how much time off they'll need
- when they'll need to take it
Paid time off for training or to look for another job
Pay for time off to look for work or training is limited to 40% of a week's pay. This applies even if the employee takes more time for this during their notice period.
You do not have to pay more, unless the employee's contract says you will. If it does not, you can choose to. Either way, you should be consistent in your approach to your employees.
Example of paid time off
Robyn has been selected for redundancy. Their normal pay is £500 for a 5-day working week.
They take 5 days off to apply for new jobs during their 12-week notice period.
Robyn is paid £200 for this time off, the equivalent of 2 days. This is 40% of a week's pay for Robyn.
Organisations that can help
You can support employees with finding another job or training by signposting them to the following organisations.
England
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 employees
Find out more about the Rapid Response Service on GOV.UK
Scotland
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.
Find support for redundancy on the PACE website
Wales
ReAct+ is a Welsh Government programme that provides tailored support to get people back into employment.