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HR Redundancy

Kate Sanderson

Hi.  I'm currently working as Head of HR in a software company that employs 100 people.  It is UK based but has a US parent company.  I'm a stand alone generalist and my role covers all aspects that you would expect of a generalist as well as Payroll, benefits, Data Compliance, Fleet Management, H&S and buildings maintenance.

Having been promoted to the job title 'Head' 6 months ago and given 2 payrises since, I have now been told that due to economic circumstances, the company can no longer afford the role of Head of HR and my job is at risk of redundancy.

I have my first consultation meeting on Friday.  The main issue I'm struggling with is understanding how they can justify the loss of my role.  Short of asking me to take a significant pay cut, then if I leave they will have to find other coping mechanisms because the work will not go away.  Obviously they can't replace me, doing all the same work, but would they be justified in handing over my workload en-mass to an outsourced service, to training others internally to pick up aspects of my function?

I'm just seeking to understand what they can reasonably do here because  I'm not aware of a company that has done away with HR altogether when it is not closing.

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  • There is no legal reason why a "Head of HR" or sole HR bod cant be made redundant. Yes many (though not all) of your tasks may have to be reallocated and split up, payroll to a finance clerk perhaps, recruitment to line managers etc but that's a decision for the employer. In theory they could bring in a much more junior person to do some of the role

    The only thing they cant do is outsource it en-mass without considering if TUPE applies 9although you may not want this).

    It does sound like they have not planned properly and budgeted your role appropriately with the two pay rises/promotions. Which is a real pity but that's life.

    You could suggest alternative means of saving money that would save your role and they need to consider these.

    You now need to look forward and consider what is best for you now. Good luck
  • in reply to Keith
    Thanks Keith - I have spent the last year instigating cost-savings in my sphere of influence and was congratulated on how well I had done only 8 weeks ago.

    As you say, onwards and upwards!
  • in reply to Kate Sanderson
    Hi Kate

    Bad news: American oil industry employers, in my (limited but quite deep) experience are entirely without scruples or empathy or helpfulness when it comes to such things

    As Keith observes, the fact that the same things need to continue to get done doesn't prevent them in employment law from rearranging how they do them and 'right-sizing' (to use their typical parlance) their headcount etc

    Such employers often I think tend to walk on the thinnest of ice when doing such things, but usually get away with it, but may muck up the process enough for you effectively to take it to independent challenge / scrutiny

    But a far better way might be to examine thoroughly during consultation whether or not they'll end up making real or significant cost savings. If they refuse to engage with you in doing this and make it clear that minds are made up etc then that may amount to muck up as above
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  • in reply to Kate Sanderson
    Hi Kate

    Bad news: American oil industry employers, in my (limited but quite deep) experience are entirely without scruples or empathy or helpfulness when it comes to such things

    As Keith observes, the fact that the same things need to continue to get done doesn't prevent them in employment law from rearranging how they do them and 'right-sizing' (to use their typical parlance) their headcount etc

    Such employers often I think tend to walk on the thinnest of ice when doing such things, but usually get away with it, but may muck up the process enough for you effectively to take it to independent challenge / scrutiny

    But a far better way might be to examine thoroughly during consultation whether or not they'll end up making real or significant cost savings. If they refuse to engage with you in doing this and make it clear that minds are made up etc then that may amount to muck up as above
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