{"id":619,"date":"2020-10-13T08:11:20","date_gmt":"2020-10-13T08:11:20","guid":{"rendered":"https:\/\/blogsource.theholidaytracker.co.uk\/?p=619"},"modified":"2020-12-08T15:45:51","modified_gmt":"2020-12-08T15:45:51","slug":"making-staff-redundant-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/theholidaytracke-4xhy3odrd6.live-website.com\/2020\/10\/13\/making-staff-redundant-what-you-need-to-know\/","title":{"rendered":"Making Staff Redundant: What You Need to Know"},"content":{"rendered":"\n
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Making staff redundant is something no business owner wants to do, but sometimes it\u2019s necessary for a business\u2019s survival. However, it can be a complex area of employment law.<\/p>\n\n\n\n

In this guide, we\u2019ll take a look at what you need to know when it comes to making staff redundant.<\/p>\n\n\n\n\n\n\n\n

What Is Redundancy and Who\u2019s Entitled to It?<\/h2>\n\n\n\n

Redundancy is when an employee is no longer needed because the business is closing. Or the work they were carrying out is no longer required.<\/p>\n\n\n\n

An employee is offered redundancy pay if they lose their job for this reason. It\u2019s designed to act as a cushion between one job and the next.<\/p>\n\n\n\n

However, not everyone is entitled to it.<\/p>\n\n\n\n

If you offer an employee alternative employment within the company but they turn it down, they\u2019re not entitled to redundancy pay. If you offer to keep staff on and they say no, they are also not entitled to redundancy pay. <\/p>\n\n\n\n

You must warn employees of the possibility of redundancy and how it could affect them before announcing redundancies. You may also need to decide which departments are affected to narrow down your redundancy pool.<\/p>\n\n\n\n

Be upfront with anyone who\u2019s at risk of redundancy. Let them know why they\u2019re in the redundancy pool. You can also ask if there are any requests for voluntary redundancy during this stage.<\/p>\n\n\n\n

Voluntary Redundancy<\/h2>\n\n\n\n

If an employee takes redundancy voluntarily, companies tend to offer a larger payment than they\u2019re legally obliged to make. When you offer above statutory redundancy pay, it’s more enticing for staff to volunteer. As an employer, you are saved from going through the compulsory redundancy process. It is discretionary how much you offer above the compulsory rate. <\/p>\n\n\n\n

How Redundancy Pay Is Calculated<\/h2>\n\n\n\n

The statutory redundancy pay someone is entitled to depends on three key factors: how old they are, what their weekly pay is, and how long they\u2019ve been employed by your company.<\/p>\n\n\n\n