In some respects, a whole section of your business closing down is sometimes easier to deal with, as it means all employees are made redundant, and you don’t have to go through the lengthy, difficult, and sometimes controversial process of choosing who gets to stay and who has to go.

Though it is sometimes tough, as the employer, you are expected to look at the situation and assess objectively how many people have to go, and who those are going to be. These people may come from any area of your business, or they may have to come from one specific area.

This is especially difficult in small businesses, where the general rule is that everyone knows everyone else. Procedures like this often make employers nervous or embarrassed, and this is when mistakes are made.

Trying to rush the procedure is also a bad idea because it often leads to not going through the correct process, which could cause you more problems in the future.

How Exactly Does The Process Work?

Your choice of who to lose has to be completely objective, and measurable in a way that can be proved. You should also be primarily aiming to keep your best employees in order to keep your business above water, and keep your business going through the economic crisis.

Step by Step:

1) Identify the number of redundancies necessary, and any particular areas

2) Note the names of all those that fall within this category – the pool

3) Record clear and objective criteria that you are going to use to decide which employees will be made redundant from this pool.

Some examples of criteria you could include are:

• How long employees have been working for your company

• Key abilities, skills

•  and qualifications that must be kept within your company to keep it going

• Any poor conduct or bad attendance (where there is no legitimate reason for these)

• Performance records

However, bear in mind that more problems could be caused if there is reason to suspect that you have unfairly dismissed employees based on any of the following criteria:

• Age, sex, race, disability

• Female employee is pregnant

• Employee is not a member of a trade union.

If it is suspected that you have dismissed staff based on any of these, you could be facing even more problems in the future in the form of unfair dismissal court cases, so make sure there is no reason to suspect that your employees have been treated unjustly.


What Do You Think?

Are there specific criteria you would add to the list as important to retain within your company? Do you have any advice for those planning on letting some employees go? Leave your comments here.

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