#73 Can I make an employee redundant?
This week and last week’s episode are all about honest communication in business. Open and transparent communication is always the best prevention so you don’t need a cure.
In today’s episode, I’m answering a question that I get asked frequently, can I make an employee redundant? The answer is yes as long as it is a genuine redundancy.
I’ll explore exactly what a genuine redundancy is and the steps you can follow to make an employee redundant under the law.
Most importantly, you can’t use redundancy as a side step to letting someone go if you just don’t want to go through the process of terminating them for performance or behavioural issues. You can’t replace someone with someone else. The role has to be genuinely not needed in the business anymore, this can be due to new technology, uplevelling, or restructuring.
Remember you can face an unfair dismissal claim if you terminate an employee under the guise of a redundancy when it wasn’t genuine. So make sure you follow the correct procedures I outline in this episode that depend on the reasoning behind your decision.
TOPICS DISCUSSED AND WHERE TO FIND THEM:
[0:58]: Redundancy is not an easy fix to terminate an employee because you don’t want to go through the communication process.
[1:24]: For a redundancy to be possible, you need to be in a position where you genuinely don’t require anybody to do that role anymore.
[2:28]: Genuine redundancies arise when businesses are growing and restructuring.
[3:22]: When you’re seriously considering a redundancy, you need to communicate with the employee so they understand what’s happening. Consider whether you can offer the employee a different role in the business.
[5:20]: You still need to give the employee a notice period with written notice.
[6:17]: Check the award (if applicable) if any additional conditions apply.
[6:50]: This advice relates to small businesses (fewer than 15 employees).
[7:19]: You can face an unfair dismissal claim if you terminate an employee under the guise of a redundancy when it wasn’t a genuine redundancy.
LINKS:
Previous episode mentioned:
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