17

Redundancy consultation process

Hello all, I have read some replies here to other similar posts and felt that the original poster was given a great deal of constructive feedback.  I hope to receive something similar.  I am afraid that I have not filled out much on my profile so that this can remain fairly anonymous as regards the employer.  I have listed events chronologically. 

[Post edited by Steve, Community Manager - some content removed]

I was informed of a meeting on Monday 4pm, to be held at 4:15pm.  

At the meeting were myself, the CEO, my line manager and an HR consultant.

At the meeting, I was informed that this was an introductory meeting to make me aware that my role was being considered for redundancy.

The financial reasons for company redundancies were outlined at the meeting.

Following the meeting, I was asked to leave the office and return on Wednesday afternoon for an initial consultation meeting.

During the meeting, my access to my email account was removed as was all access to any digital files saved on the hard drive or Google Drive.

Below are notes from the Wednesday meeting, no one took minutes at the actual meeting so I wrote what I remembered after the meeting, appreciate that they are notes.

At the meeting were myself, the CEO, the HR consultant and a colleague of mine.

This is the beginning of the consultation period, if there are alternatives discussed, the consultation period will continue.

Talk about potential future meetings and why there might be future meetings.

CEO talks at length about the process of selection regarding the financial situation.

1 role out of 7 resignations is being replaced (4 in technical roles), and 4 redundancies.

I outline the aspects of my job that are outside of line manager's knowledge base.

One employee has offered to work 1 day less/week after the announcement Tuesday.

I did not have proposals for other employment and neither did they, because there are no available posts suitable for me.

More time could be required to go over things with line manager: hand over.

CEO acknowledged that my departure would not have looked good to staff, plans exist for a social for all those affected.

The offer is over and above the statutory requirement.

Draft package:

    Statutory notice: 4 x £X

    Additional amount to make up 1 month's pay (difference from £X)

    1-month notice period £X

    Holidays £X, based on part of the year I will have worked by the date of termination

    Discretionary redundancy pay £3000

    Total - c£12,000 153.80 (the total given by the company, I know it is incorrect)

Total discretionary additional amount is about 1.5 months.

I outlined my case for why this is a low offer: length of job search, responsibilities, potential pay cut, disability.

Total package is roughly three times a month's wage.

Notice period payment: I could be asked to work in this time, [employer] has opted not to do that.

Offer of consultancy service by present HR consultant and company: CV creation, interview skills, job searches.

Offer of reference letter. References would be glowing.

Final decision only final in writing

I was told I would be contacted about any changes after management had time to discuss the meeting.

I received word, the following day, that they had increased the offer from £3000 to £4000.

I replied later that day that the offer was still too low:

    I have taken advice on your offer and have been advised that your offer is still low in the circumstances.  I was advised that four months, after statutory and contractual notice payments are made, is not unusual but I am willing to reduce this expectation and accept £15000, after statutory and contractual notice payments.  

And the CEO's reply:

    Unfortunately, given (the company's) cash position, the board are not able to offer more than the £4000 discretionary payment discussed yesterday. The proposed package represents 4 months pay, assuming monthly pay of £X after tax.

I would very much like to agree on this amicably because I respect you and value the complete loyalty and support you have expressed during your time at (the company).

Normally the payments are not negotiable, however, because of your significant contribution to (the company), we made an exception but we have gone as far we can.

Please let me know if we can agree with this today?

I stated that I would need more time to reply.  I received the document by email that my role had been made redundant, 2 1/2 hours later.  The CEO then left for another country the following day for company matters.

The document was initially sent to my work email address and then, on the Monday directly after, was sent to my personal email address.

On Wednesday, the 23rd of May, I received an email from an office admin:

    We want to thank you for your outstanding contribution to (the company) and we are planning to organise drinks next [date]. The company will pay for the first two rounds of drinks.

Please let me know if you would want to attend this so I can get this organised.

Would you be able to confirm that you received our email and letter?

I had already replied that I received the email, the letter was collected on the 29th of May, by me, from the post office as the company underpaid for stamps.

I wrote and sent an appeal the next day...

    I write to appeal the decision to dismiss me from (the company). I believe that my dismissal for redundancy is unfair and that (the company) has behaved unreasonably. In particular, I believe that (the company) has failed in its obligation to properly warn and consult with me. Furthermore, I believe that the decision to dismiss me may have been pre-determined.

The appeal goes into far more detail about why I feel this, which I can share if you want, but feel this post is already too long.

The appeal meeting is on the 5th of June, do you have any suggestions as to what the key points I should raise are?

Thanks in advance,

Michael

3366 views
  • Steve Bridger

    | 0 Posts

    Community Manager

    30 May, 2018 16:28

    Hi Michael... I think you have shared too much detail in your post so I will temporarily remove and edit... and then post this edited version. Sorry.
  • Michael

    I can understand your frustration.

    Diosmissal on the grounds of redundancy may fall into one of the following four categories (you may know this already).

    - the employer ceases to carry on the business in which the employee was employed;
    - the employer ceases to carry on that business in the place where the employee was employed;
    - the needs of the business for employees to carry out work of a particular kind cease or diminish; or
    - the needs of the business for employees to carry out work of a particular kind in the place where the employee was employed cease or diminish.

    Assuming one of these applies then there is the basis for a fair dismissal. Is your position the only redundancy? If so there is no statutory duty to consult if there unless the employer proposes to dismiss by reason of redundancy 20 or more employees within a 90 day period.

    They have consulted, however - albeit in a fairly truncated way.

    By reading what you have said (and that may not be the whole story of course) unless there were 20 or more redundancies planned, and/or your position wasn't a one off and therefore you should have been in a pool of jobs at risk whereby a process using objective and fair criteria should have been used to select, then I'm not sure what grounds for appeal you could have.

    In terms of the package offered - this may or may not be deemed as generous or mean - but it is above and beyond the statutory requirement and therefore no real grounds for appeal unless it can be established that there is a contractual redundancy package calculator that hasn't been applied in your case.
  • Steve Bridger

    | 0 Posts

    Community Manager

    30 May, 2018 16:32

    In reply to Robert James Munro:

    Welcome back, Robert James Munro :)

    Please note my post above.
  • In reply to Steve Bridger:

    That's fine.  Apologies if I had neglected removing sensitive info.  Are you planning to expand this initial paragraph?

  • In reply to Robert James Munro:

    There were 4 redundancies out of a total of 5, for my redundancy, there was no pool as mine was the only role of its kind, despite others who carried out similar duties.
  • In reply to Steve Bridger:

    Thanks, Steve. Real life gets in the way sometimes ;-)
  • Steve Bridger

    | 0 Posts

    Community Manager

    30 May, 2018 16:42

    In reply to Michael:

    Yes, Michael. I will do that shortly.
  • Steve Bridger

    | 0 Posts

    Community Manager

    30 May, 2018 16:58

    In reply to Steve Bridger:

    Done. Apologies for formatting.
  • In reply to Steve Bridger:

    Hi Michael

    I tend to agree with Robert: if your post is definitely planned to be done without and there is no selection pool involved, then, even *if* the dismissal process was deemed procedurally unfair by a Tribunal, Polkey principles would be likely to apply to any award, on the basis that it would have happened anyhow.

    Are they wanting you to enter into a Settlement Agreement in order to collect the enhancements? - it's usual for employers to say take it or leave it - either statutory minimum or statutory plus enhancements subject to SA.

    How do they intend to do their HR once you go? - using a consultant might save them employment costs and paid holidays etc but how much a day or hour will they have to pay the consultant? - why won't direct employment of an HR bod be cheaper and more effective?

    You could ask them to respond in writing to questions like that: a Tribunal won't usually go anywhere near substituting their opinion for that of an employer even if it's fairly clearly mistaken, but in the (unlikely?) event that your employer doesnt consult meaningfully on such matters, you may just possibly then have a case against them - but all in all, have to say that I doubt it and that your employer appears to be trying at least somewhat to soften the blow - it's still most traumatic for you, probably, but it really is best to try to see it all as a new opportunity for you - it may sound trite but often with hindsight it turns out to be true......
  • In reply to David:

    Thank you for your feedback.
  • In reply to Michael:

    Hi Michael

    How long is your service? The answer to that question determines what options are open to you.

    It's just a detail, but when you write to them with your questions as suggested by David, I'd ask why your email access was cut off during the meeting that supposedly started consultation. To me, that is suggestive of a decision already made. As Robert says, there is no statutory consultation period for fewer than 20 redundancies in a 3-month period, but there is always an over-arching requirement to act reasonably and fairly.
  • In reply to Elizabeth Divver:

    Hello Elizabeth, I was there for 3 1/2 years, plus occasional consultant work before I started there full time.
    Thank you.
  • In reply to Elizabeth Divver:

    What is reasonably and fairly from the 1st consultation to the next when dealing with only a few redundancies (and not over 20)
  • In reply to Sarah Crisp:

    There is no right answer. Generally its long enough for the individual and the company to go away and think about things and find out any information they need before meeting again. But short enough so the whole process doesn't drag. So often its between 3/4 days and a week between meetings.
  • In reply to Sarah Crisp:

    I don’t like to go under two weeks from first meeting to decision day, but it does depend on the circumstances.