Employers facing a potential or actual Redundancy or TUPE (Transfer of Undertakings (Protection of Employment) Regulations) situation need to ensure HR and Senior Leaders understand the process, rules and regulations thoroughly. There are significant legal, financial, and reputational risks associated with getting these processes wrong. Our courses for HR and Senior Leaders provide this essential knowledge.
- Mitigating Massive Legal & Financial Risk
Both redundancy and TUPE are governed by strict, complex employment law. A failure to follow the correct statutory procedures can lead to expensive and damaging claims in the event of a related Employment Tribunal.
- Unfair Dismissal Claims:
- Redundancy: If the process is unfair (e.g., selection criteria is biased, consultation is inadequate, or no genuine redundancy situation exists), dismissed employees can claim unfair dismissal. This can result in large compensation payouts.
- TUPE: Dismissing an employee because of a TUPE transfer is automatically unfair dismissal, irrespective of the employee’s length of service, which carries significant risk.
- Protective Awards (TUPE/Collective Redundancy):
- Failing to properly inform and consult with employees or their representatives can result in a Protective Award of up to 8 week’s gross pay for every affected employee. This liability can be massive.
- Failing to properly inform and consult with employees or their representatives can result in a Protective Award of up to 8 week’s gross pay for every affected employee. This liability can be massive.
- Breach of Contract (TUPE):
- TUPE automatically transfers employees’ existing terms and conditions to the new employer. Unlawfully changing these terms due to the transfer is a breach of contract and can void the changes, leaving the new employer with unexpected liabilities.
- TUPE automatically transfers employees’ existing terms and conditions to the new employer. Unlawfully changing these terms due to the transfer is a breach of contract and can void the changes, leaving the new employer with unexpected liabilities.
- Ensuring Compliance and Protecting Reputation
Proper training ensures that managers and HR staff know exactly what to do and when to do it, helping to ensure legal compliance and professional integrity throughout.
- The Right Process: Training teaches the non-negotiable steps: identifying a genuine redundancy situation, conducting fair selection, and executing meaningful consultation.
- Avoiding Reputational Damage: Poorly handled job losses or business transfers can lead to negative press, low morale among remaining staff, and difficulty recruiting top talent in the future. Following a fair, empathetic, and transparent process protects your company’s brand.
- Effective Due Diligence (TUPE): Training helps the acquiring and disposing businesses understand their Employee Liability Information (ELI) obligations and commercial risks before the transfer, preventing costly surprises post-acquisition.
- Maintaining Employee Morale and Stability
Redundancy and TUPE transfers are periods of high anxiety and uncertainty for the workforce. Trained managers can navigate this sensitivity more effectively.
- Transparency and Trust: Knowing the rules allows management to communicate clearly and honestly, which helps maintain trust, reduce anxiety, and keep the workforce productive during the transition.
- Retention of Key Staff: A professional, well-managed process signals that the company values its employees, which is crucial for retaining critical personnel who are not being made redundant or transferred.
- Preventing Disputes: Handling the process fairly and compassionately significantly reduces the likelihood of grievances, internal disputes, and ultimately, external legal claims.
- Training for Employee Representatives
Employee consultation is demanded by law. Our training for employee representatives enables them to understand the legal process, carry out their duties more effectively and in turn enable them to provide greater support to the employer and their colleagues alike. We focus on more than just the legal process. We explore how to cascade difficult messages, reinforce the understanding that their role is consultative not negotiative and demonstrate a range of skills and techniques to help them perform better in meetings, support people with different needs and help ensure the process is implemented smoothly.
Summary
In short, redundancy and TUPE training is not just a nice-to-have; it’s a critical defensive measure that saves the company money and time, protects its reputation, and enables smooth, lawful business transitions.
