Redundancy information

The Employment Affairs team have put together some frequently asked questions on redundancy to help guide Members if they need to start the redundancy process.

My business has participated in the Coronavirus Job Retention Scheme; does this mean that I now cannot make any worker redundant?

You can make redundancies after having received CJRS grants to pay your workers’ wages, as long as the post(s) affected are genuinely redundant, and as long as you carry out a full and fair redundancy procedure.

See our Redundancy Process Flowchart and Section H of the SJIB National Working Rules for a step by step guide to this process.

Be aware that your worker may appeal your decision, so you must be able to justify their selection, and the need for the redundancy at all.

After exhausting all other avenues to preserve employment, I now have to make a worker redundant.  I have followed the correct procedure, and fairly selected the person who will leave the business.  That person is currently on furlough – what do I do now?

As of 1 December 2020, a claim for furlough payments cannot be made while the employee in question is serving their redundancy notice, but nevertheless they must receive 100% of wages during their redundancy notice period. 

Can my worker take holiday while on furlough, while under notice of redundancy?

A worker cannot be furloughed and under notice of redundancy at the same time.  However, when under notice of redundancy an employee can request and take holiday in the usual way.  Remember that all holidays must be paid at 100% of wages.  A period of furlough should not be enacted as a way to off-set holiday costs.  

What should a worker’s redundancy pay be based on – their pre-furlough wages, or 80% of wages?

A worker’s redundancy pay must be calculated on their pre-furlough wages.

Is it possible to make an Apprentice or Adult Trainee redundant at this time?

Again, if a genuine redundancy situation exists then you can perform a full and fair redundancy procedure.  You should also request permission for this redundancy from the SJIB; contact [email protected] to request the appropriate application form.

My business may need to make a large number of redundancies – do we have any extra obligations throughout the process?

If an employer intends to make 20 or more redundancies from a single establishment within a 90-day period, the appropriate trade union, or employee representatives if there is no Union representation, must be consulted.  This means you must discuss redundancy changes with both elected representatives and individual members of staff before anyone is made redundant.

Employers must disclose in writing to the appropriate representatives the following information concerning proposals for redundancies so that they can play a constructive part in the consultation process:

  •  the numbers and descriptions of employees it is proposed to dismiss as redundant
  • the total number of employees of any such descriptions employed at the establishment in question
  • the way in which employees will be selected for redundancy
  • how the dismissals will be carried out, taking account of any agreed procedure, including the period over which the dismissals are to take effect
  • the method of calculating the amount of redundancy payment to be made to those who are dismissed
  • agency workers: the number of agency workers, where they are working, and the type of work they are doing

Employers are required by law to notify the Redundancy Payment Service (RPS), using an HR1 Advance Notification form, of a proposal to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less.  Notification must be made at least 30 to 45 days before the first dismissal, and before any notices of dismissal are issued.

The letters to be issued to workers are the same as for smaller scale redundancies, and can be accessed here.

Please see our Collective Redundancies Guidance for more specific information about the legal requirements when making large-scale redundancies.