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Employers should decide on the number of employees to be made redundant and, if more than 20, must undertake collective consultation. The employer must consult "Appropriate Representatives" about collective redundancies where it is proposed to make 20 or more redundancies at one establishment within a period of 90 days or less.
The criteria used to select employees for redundancy should be as objective as possible. Consider last in first out, skills and performance, attendance and disciplinary record, experience and aptitude.
At the outset of the redundancy programme it is advisable that a general announcement about the proposed redundancies is made to confirm the reasons for the exercise and to confirm that no decisions will be taken without full consultation with employees. This announcement can either be by way of general letter or general meeting. There should then follow individual letters to employees in the areas affected inviting voluntary redundancies
Individual notices of dismissal may not normally be issued to employees in a collective redundancy situation until the consultation process has been completed.
Employers should offer suitable alternative employment if available. If an alternative position is accepted by an employee he has a statutory right to a trial of 4 weeks in the job. This is to give the employee a chance to decide whether the new job is suitable.
Despite all the legislation and payments, redundancy can be financially crippling. It is wise to obtain Redundancy Protection in the form of Redundancy Insurance Cover now and not wait until the evil day dawns when it will be too late!
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