Use this Redundancy Policy to clarify the circumstances in which an employee may be made redundant. This Policy also outlines the possible next steps following a redundancy, including redeployment and retrenchment. A Redundancy Policy is an important document for any company to have in place to provide guidance and clarity to employees during periods of restructuring or downsizing. It provides a framework for how employees will be treated during the redundancy process.

A key element of a Redundancy Policy is the requirement for the company to explore all alternatives to redundancy before making any positions redundant. This may include considering options such as redeployment, job sharing, reduced working hours, or other flexible working arrangements. By exploring these alternatives, the company can help to minimise the number of redundancies that need to be made, and ensure that employees are treated fairly and respectfully throughout the process.

The primary purpose of a Redundancy Policy is to ensure that the company handles the redundancy process in a fair and transparent manner, while also ensuring that the needs of the business are met.

By having a clear and consistent policy in place, the company can ensure that all employees are treated fairly and equitably during the redundancy process. This can help to reduce confusion and uncertainty, and maintain morale and productivity among the workforce.

The way in which a company handles redundancies can have a significant impact on its reputation and standing in the community. By following a well-documented policy that is perceived as fair and transparent, the company can help to maintain its reputation and mitigate any negative publicity or public backlash.

Further, a well-designed Redundancy Policy can help to minimise the risk of discrimination claims, by ensuring that the selection criteria used to determine which employees are made redundant are objective, transparent, and based on job-related factors.

During a redundancy process, there is a risk that the company may lose valuable employees who are not selected for redundancy but may feel uncertain about their future with the company. By providing clear communication and support to all employees throughout the process, the company can help to retain key talent and maintain continuity in the workforce.

Use this Policy if:

• You want to provide clarity around the circumstances in which the company may make an employee redundant;

• You want to give your employees certainty about their options in case of a redundancy; and

• You want to ensure that your company complies with the national employment standards in regards to notice periods and retrenchment payments.

What does this Policy cover?

• How a redundancy decision will be made;

• The minimum payments and notice periods that employees are entitled to under the national employment standards;

• The processes for carrying out redeployment and retrenchment; and

• The support that the company will provide the employee following a redundancy.

Further information

• Standing Down Employees Versus Redundancy

• What is Genuine Redundancy?

• Redundancy: Lessons for Employers