Marketing software provider
To undertake a redundancy exercise with minimal disruption and risk to an employer and to maintain the morale of the remaining employees
Situation And Challenge
The employer had launched a software product which failed to generate the income it anticipated. As a result, there was a reduced requirement for employees in the product section and the business needed to make significant cuts in order to keep the company afloat.
Many of the employees had been there when the business first started and the company was concerned not to destroy morale and loyalty amongst those who would not be selected for redundancy. This was important for the stability and ongoing survival of the company; it needed to retain its best staff as it could not afford to replace such key members of the team.
In order to ensure a fair redundancy procedure was followed, we assisted the HR team and the Operations Director with identifying the correct pools of employees. There were different roles performed at different levels within the product section, for example, junior and senior software developers, sales people and administrative staff. We needed to take such distinctions into account when considering the correct pool for redundancy purposes.
We provided the employer with a guidance note to support them, step by step, through the redundancy process (including a script for a without prejudice/protected conversation as the company was contemplating offering an enhanced redundancy package), and drafted letters to invite the employees to consultation meetings as well as notices of termination.
We advised our client on how to carry out the redundancy procedure so as to minimise the risk of claims but also on how to do so to minimise the negative impact of staff morale.
Our client successfully conducted the consultation meetings; fully explaining why it chose to select those employees first. The employees appreciated the transparency with which the business had conducted the process and the degree of explanation provided in respect of the redundancy situation.
Our client managed to retain all remaining staff with good morale and is still trading.
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