You work in a call centre which has recently experienced a downturn in the amount of business that it has. It has been decided, therefore, to make 5 of the 20 Call Centre Operators redundant. Write a letter to the Operations Manager explaining:
1. The main legal requirements that need to be considered, including Codes of Practice, explain the impact that these have on the organisation. 2. How to ensure that the dismissals are fair and the importance of this to both the employer and employee. 3. The stages that need to be followed in handling the redundancy situation to minimise the impact on the organisation. 4. The purpose and importance of carrying out exit interviews with all employees prior to their leaving the organisation.
John DoeHR Manager
Call Centre Limited
Attn: John Smith1 High Street
Call Centre Limited
1 High Street
8th February, 2015
I hope that this letter finds you well. After careful consideration, following the current financial performance of Call Centre Ltd., it is with great regret that I inform you the decision of the Directors to reduce the call centre operators by five employees. This currently remains a highly confidential matter therefore your discretion at this time is imperative.
We will embark on a process of consultation immediately which will last for at least 2 weeks however this time frame is likely to be extended if complications occur during the redundancy process. In this period of time the employees will elect representatives which will have the opportunity to discuss with their line managers and HR what their options are. All recruitment activities for Call Centre Operators will cease during this period and any applications for employment in this department that are being considered will be rejected.
“The purpose of consultation is to provide as early an opportunity as practicable for all concerned to share the problem and explore the options. It can stimulate better co-operation between managers and employees, reduce uncertainty and lead to better decision making. When faced with a redundancy situation, trade union or employee representatives or individual employees may be able to suggest acceptable alternative ways of tackling the problem or, if the redundancies are inevitable, ways of minimising hardship. The employer will then be in a better position to decide whether the needs of the business can be met in some way other than by dismissal.” ACAS. (2006). Advisory booklet – Redundancy handling. Available: www.acas.org.uk/media/pdf/a/3/B08_1.pdf. Last accessed 15th February 2015.
The options that are currently being considered to try and make this process as smooth as possible for the company and the employees are voluntary redundancy and the retraining of the employees to a different job role where possible. If there are still employees pending at the end of the process we will carry out an objective selection of which employees will be made redundant. By adhering to the above we as an organisation will avoid any dispute of wrongful dismissal or unfair treatment amongst the employees that are affected.
To ensure that the process is fair, HR has devised a redundancy selection matrix. The HR representative and Line Manager will review the matrix and will consider various factors which will provide them with a score for each individual. The factors included for this scoring system are: general performance within the role, their current experience in the role, their attendance records their flexibility and their length of service. Once all the employees that are affected have been scored, those with the lowest score will then be selected for redundancy. This process will take place during the consultancy period to ensure all employees have been considered fairly.
Redundancy is not a pleasant experience for the organisation or our employees. All employees that will be affected of this situation will be consulted and given a suitable amount of warning. They will also be made aware of the reason for the redundancy dismissals and the number of the proposed redundancies. The process of selection and what procedures will be followed during this challenging time will also be made clear to each employee that may be affected. Last, they will also be made aware of the method of calculation of the redundancy pay they will receive if they are selected.
In order to make the process effective and smooth as possible we will plan effectively to make the process as quick and painless for both parts as possible. This plan will include firstly, since we have already identified that the effected employees will be five out of the twenty call centre operators, offering those who choose this option, a voluntary redundancy package that will be increased by 10% of the statutory redundancy payment package in order to encourage them to accept the redundancy conditions with ease.
“As part of the overall procedure, once the need for redundancies has been identified and careful planning has taken place, offering a voluntary redundancy package and then seeking willing redundancy volunteers may avoid compulsory redundancies altogether.” Lisa Ayling. (2014). Redundancy Factsheet. Available: http://www.cipd.co.uk/hr-resources/factsheets/redundancy.aspx. Last accessed 15th February 2015.
Following this, we will consult the employees or their representatives to identify if they are willing to retrain for another available position within the company. This will allow them to retain a position within the company at a different post if available and avoid the loss of permanent income. The individuals will be consulted to determine if this is an option that they would consider if there is a suitable position available.
Once the process has concluded and it has been decided which employees will unfortunately be made redundant, there will be an exit interview process which will be available to all the individuals who have chosen voluntary or enforced redundancy however, this process will not be compulsory. It is likely that the employees that will be interviewed in this instance will be unhappy about the situation however, it is of the utmost important for them to have the opportunity to express their feelings about the situation and the organisation. The exit interview process will involve the employees that will be leaving the company with a representative of HR.
If you have any questions regarding the redundancy and wish to have more information on the matter, please do not hesitate to contact me on [email protected] or on 01224 1234567.
This is a difficult time for the organisation and all who will be involved in this process however; it is the only way forward for our company’s financial stability.
I look forward to hearing your reply and input on this matter.
ACAS. (2006). Advisory booklet – Redundancy handling. Available: www.acas.org.uk/media/pdf/a/3/B08_1.pdf. Last accessed 15th February 2015.
Lisa Ayling. (2014). Redundancy Factsheet. Available: http://www.cipd.co.uk/hr-resources/factsheets/redundancy.aspx. Last accessed 15th February 2015.
www.cipd.co.uk 08 – 10 February, 2015
www.gov.uk accessed 08 – 10 February, 2015
www.acas.org.uk accessed 08 – 10 February, 2015
Kathy Daniels, Supporting Good Practice in Managing Employment Relations, Version 8 Malcolm Martin and Fiona Whiting, Human Resource Practice, 6th Edition