Interactive questionnaire: Dealing with redundancies: 20 or more employees

If you are proposing to dismiss 100 or more employees for redundancy at one establishment within 90 days or less, you have a statutory duty to inform and consult employee representatives about your proposals.

Consultation must begin at least 90 days before the first dismissal takes place.

If you are proposing to dismiss between 20 and 99 employees for redundancy at one establishment within 90 days or less, consultation must begin at least 30 days before the first dismissal takes place.

In either circumstance (a 'collective redundancy'), you have to disclose, in writing, to the appropriate representatives during the consultation process:

• The reasons for your proposals.
• The number and description of employees whom you propose to make redundant (for example, 10 shop floor workers).
• The total number of employees of that description employed at the establishment in question (for example, 32 shop floor workers).
• The proposed method of selecting people to be made redundant.
• The proposed method of carrying out the dismissals, including the period over which the dismissals are to take effect (for example, five notices to be issued within the next three months, and another five at the end of the year).
• The proposed method of calculating the amount of any redundancy payments to be made (other than statutory redundancy payments).

Where you are proposing to dismiss smaller numbers, it is obviously reasonable to give as much notice as possible, and you must in any case observe the notice provisions within the employees' contracts.

'Protective' awards

A 'protective' award may be made if you fail to comply with the obligation to consult appropriate representatives in a collective redundancy situation. The award is for a 'protected period', which may be up to 90 days. If a protective award were made, you would have to pay full pay to all the employees who have been dismissed or whom you propose to dismiss as redundant, for the duration of the protected period. This is why it pays to start collective redundancy consultation sooner, rather than later.

Click here to see an interactive questionnaire that will help you comply with the statutory procedure that you must follow if you propose to make 20 or more redundancies at one "establishment" within a 90 day period.