Can I make more than 20 employees redundant?
Can I make more than 20 employees redundant?
Yes, you can make more than 20 employees redundant. However, you will need to follow the proper procedures and consult with your employees first. You should also consider other options such as retraining or redeployment before making any final decisions.
If you are making under 20 people redundant then there are no rules about how they should carry out the consultation. If they’re making 20 or more redundancies at the same time, the collective redundancy rules apply.
The collective redundancy rules apply when an employer proposes to dismiss 20 or more employees at one establishment within a period of 90 days or less.
The below guide outlines the steps to take when the redundancy guidance rules are applicable:
- In a collective redundancy situation, the employer must consult with representatives of the affected employees in good time before any decisions are made.
- The consultation must aim to reach an agreement on measures to avoid dismissals, reduce the number of dismissals and mitigate the consequences of dismissal.
- If an agreement cannot be reached, the employer must give notice of collective redundancies to the relevant government body at least 30 days before the first dismissal is due to take effect.
- The notice must specify the reasons for the proposed dismissals, the number and categories of employees affected, the proposed method of selection for dismissal, and the proposed timetable for the dismissals.
- After receiving notice of collective redundancies, the government body may decide to refer the matter to a conciliation service in an attempt to reach an agreement between the employer and employees.
- If conciliation is unsuccessful, the government body may order that no dismissals take place for a period of up to 90 days. This is known as a moratorium.
- During a moratorium, the employer and representatives of the affected employees must continue to consult with a view to reaching an agreement on measures to avoid or reduce the number of dismissals.
- If an agreement is still not reached at the end of the moratorium, the employer may proceed with the collective redundancies.
- In certain circumstances, collective redundancies may be exempt from the above rules. For example, where the dismissals are due to an economic, technical or organizational reason entailing changes in the workforce (known as an ETO reason), collective consultation is not required if the dismissals are for one of the following reasons:
- a business transfer or service provision change;
- the discontinuance of all or part of the employer’s business;
- redundancy due to a slump in demand for goods or services;
- redundancy due to changes in technology; or
- redundancy due to reorganisation which is not connected with a transfer or service provision change.
Our expert employment law solicitors all have many years of experience advising individuals who are in your position. We will be able to guide you through the process and to help you secure the best possible outcome.
We offer a range of services to those affected by redundancy, so please contact our friendly customer services team to discuss further via hello@kilgannonlaw.co.uk or 0800 915 7777.
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