Question of the Month: How can we make an employee redundant?
Should we make an employee redundant using a settlement agreement for an underperforming employee?
We have been asked this several times in the last month so we thought it was an important one to explain further.
There are five fair reasons to terminate someone’s employment and when you are looking to end someone’s contract it’s important to be clear for the reasons why.
- Conduct / Misconduct
- Capability / Performance
- Statutory illegality or breach of a statutory restriction
- Some Other Substantial Reason (SOSR)
With the question above, it would be key to fully understand whether the role is redundant, whether the employee is underperforming or whether both things are happening at the same time. From the situations we have discussed with many clients, usually the employee is not performing to the expected standard and the company think it’s easier to terminate on the grounds of redundancy.
However, redundancies can be complex, time consuming and ultimately costly if they are carried out incorrectly. Before moving forward, it would be key to talk the whole situation through with a Legal Advisor before embarking on any process.