What you need to know about Coronavirus redundancies

April 10th, 2020

Uncertainty, lack of demand and enforced business closures following the UK outbreak of Coronavirus has left businesses with some hard decisions to make.

Many business owners are currently facing difficult decisions in order to secure a future for their business. One such decision is whether you need to make staff redundant.

If you are an employer that unfortunately needs to make redundancies as a result of Coronavirus, it is vital that the correct procedures are followed.

While redundancies might be made to save costs, businesses can face large compensation claims that outweigh the costs savings if the correct steps are not followed. 

It’s fair to say that the virus has impacted everyone, in some form or another, and emotions will be running high. This is why it is more important than ever to ensure that redundancies made by your business are fair.

A fair redundancy

In order for a redundancy to be fair you must have a fair redundancy selection criteria and a consultation process must be followed. This includes considering alternative employment in the business. The selection process must be objective and cannot discriminate on protected characteristics or personal preference.

If you are making more than 20 members of staff redundant, then you must begin the consultation with a union or employee elected representative at least 30 days before the first dismissal. If you need to make 100+ employees redundant this period is increased to 45 days.

Affected employees must be given the correct notice, either statutory or the notice outlined in their contract of employment, and for those entitled to one, a redundancy payment also.

Contact us

For more information on the risks of unfair dismissal claims arising from redundancies made in the Coronavirus crisis contact Verisona Law’s employment team on 02392 98 1000 or email connect@verisonalaw.com