How to Deal with Employment Redundancy - Research Proposal Example

A Research Proposal on how to Deal with Employment Redundancy Name Tutor Institution Date Table of Contents Introduction 2 Objectives and Rationale 3 Objectives 3 Rationale 3 Literature Review 4 Methodology 7 Ethical Issues 8 References 9 Introduction Redundancy is a term used to refer to a situation where an employer dismisses their employee(s) in an organization due lack of need of the post held by the employee(s). The employer is charged with the responsibility of ensuring that the dismissal is purely fair and work-related. The redundancy has got to do with the post held by the employee, not issues relating to the personal attributes of the employee, as the delivery of the employee of an employee is a performance concern not a legal provision for dismissal. Objectives and Rationale Objectives The objectives of this research are basically three. The paper will highlight on the reasons for redundancy, the basic details that the employer needs to have in his redundancy checklist as well as the practicality of redundancy This research project looks at the reasons and argument behind redundancy of employees and the necessity of the process will be evaluated from an employer’s point of view. The paper seeks to find the basic details of checklist of redundancy, since it is significant that the employer does ensure that before an employee redundant, given actions are duly completed to avoid inconveniences due to feelings of unfair dismissal by the employee, which could lead to the employer facing charges. There is also need to investigate whether the dismissal realizes its intended goals, by looking at its viability, since redundancy needs to be practical. Most firms opt to make their employees redundant as a strategy of cutting down costs. Since redundancies are on the rise, the employer needs to be well versed with the practicality of the redundancy, as it might be costly to execute in comparison to letting the employee stay. Rationale There are legal provisions for the employer to share with his employee situations that may prompt their redundancy and give free room for the employee to give their views and even be involved the decision making process. Though, other changes in the organization might present situations where just a single employee has to be dismissed, yet there are many employees holding the same position in the firm. In this case, reference to the terms of the employment contract has to be done. In such cases, a general strategy of dismissing the latest employee is commonly applied, otherwise holding consultations is critical. Redundancy arises from actual commercial situations. The employer has got no right of making an employee redundant as a result of negative factors relating to the way in which the employee responds to their responsibilities at work. Redundancy should also not result from the feeling that the employee does not meet the standards of the job description or lack of given personal traits. There exists a clear distinction between terms of service delivery and redundancy provisions. An employer is only supposed to dismiss the employee in cases of factual commercial reasons. Redundancy is provided for if an employer has been pronounced bankrupt. Bankruptcy allows for dismissal of employees, since the employer is not likely able to meet the costs of running his organization, and meet such necessities as paying the salaries of his employees according to the employment terms and payment of taxes. This will force the employer to dismiss his staff. Literature Review Redundancy of employees comes with dissolution of an organization, in case this is provided for in the employment contract (WALKER (2013) and LEECE (1990)). The organization, closing down as a result of meeting its objectives, a legal directive or the owner’s wish, has to forcefully terminate the employment of its workers. HYAMS (2006) and KIELY (2008) observe that termination of the employment of a worker can result from the decisions of a firm to no longer need the services of an employee. In this form of redundancy, the firm decides hat workers offering given services are not relevant in terms of objectives of the firm. Here, a whole department may prove unnecessary in a firm leading to the dismissal of all workers of that department. Dismissal of an employee is necessary in cases of replacement due to adoption of new technology (UPEX & CATTERALL, 1986). This replacement might take the form of replacement by a machine, which can perform tasks efficiently, or replacement by other candidates who have the necessary technical skills in operation of the new technological equipment. An employee is likely to be dismissed if the business is running on loses. Loses are a result of reduced sales or low production. This makes it difficult for the business to retain its entire workforce. Dismissal then becomes inevitable. Relocation of a business can lead to redundancy (HAMPSON (1980) and WHITE (1983)). The employee might be forced to withhold their services as they might not be comfortable to relocate with the business as a result of not wanting to break family ties and moving away. Other employees might not relocate if the new location will present in increase of expenditure, while others will lack an apparent reason of relocating with the business, it is human nature to resist change. Dismissal of employees is caused by a firm forming a merger with another firm, or a total takeover by a different firm altogether (KRUUSVALL, 1994). If a merger or takeover takes place, it is common knowledge that the new business will definitely change a number of things, its workers included. Even the need to renew employment agreements sees the workers’ services being terminated. BOURN (1984), proposes that the organization and restructuring of a business firm leads to dismissal of employees. This process means a firm changing in its operations, ranging from revision of the objectives of the firm to its operations. Changes in the production patterns, for instance, are likely to see the redundancy of a large number of employees in the firm, as there is need to revise the skills of the employees with reference to the new tasks of the organization. In view of these reasons for redundancy of employees, the employer must also meet certain criteria before dismissing his employees. The employer has to prove beyond doubt that a genuine need for dismissal of workers exists. The act of dismissal must comply with the definitions of the five regulations of the Real Property Acts (MCMULLEN (2010) and PAINTER et. al. 2004)). The employer also has to convince the employee that all potential alternatives were looked at and given consideration, that the conduct of redundancy was highly reasonable and that the selection of who to be dismissed was wholly just. It is a common practice that before job termination, the employer has to take into account all the feasible options. Such possibilities as redeployment (appointment to a different post) are considered, though as an employer, one is not under the pressure of deploying a worker, not unless it is stated in the agreement of employment. It is an act of good faith to deploy an employee in case there is a vacant position that the employee could fill easily, with reference to cost or technicality. The retrenchment compensation of the employee, awards and entitlements of annual leaves and other leaves in progress must be met. This could be costly in cases of collective redundancy, where multiple employees are dismissed. The employer should consider the cost of dismissal and that of retaining workers, if reduction of costs is a reason to go by (PEETZ, 2005). Any redundancy decision is compulsorily preceded by a notice to the employee, and extra entitlements subject to provision such compensation due to redundancy are granted. It is the responsibility of the employer to give compensation when it is guaranteed by the agreement (INCOMES DATA SERVICES 2008). Otherwise, it is optional, though the employer can still grant it, in addition to the annual leave entitlements in the final payment. The employee is as well entitled to a given duration of time so that they can find another job opportunity. Other forms of social support given to the employee include recommendation letters and counseling, which at times are provided for by the employment policy. It is in order that the employer does critically consider the reasons for termination of employment. Some rights of the workers should not lead to their dismissal. Employers have the right to apply and go for such leaves as the parental or maternity leaves. Selection for dismissal due to employee’s age, marital status, sex or physical disability amounts to unjustifiable redundancy (GREAT BRITAIN, 2007). However, with valid reasons, dismissal of employees can legally take place even when they are on such leaves. In instances where the employee feels that the dismissal was not legitimate, they can present their complaints to the employer, and if the employee is not satisfied, the case can be settled in court of law, which will look at the legitimacy of the redundancy. It follows that redundancy is a situation that genuinely exists, if only genuinely executed. The employer should be in a position to grant any form of help, not necessarily as stated in the employment policy. This is an act of good will and shows appreciation to the employee for having made the decision to offer services in your firm. According to PALCA & TAYLOR (2009), the checklist for redundancy contains the basics of finalizing a dismissal. The employer must ensure that he settles all the financial requirements between him and the employee. The final pay should clearly be supported by explanations relating to the employment policy provisions and awards, the date and channels of payment of the final pay. The employer must provide a certificate Employment Separation. The certificate validates the termination of the employment, providing the reason for dismissal and the dates of the termination. The employer also must provide a written affirmation of service, which is accurate, in case requested by the employee. The employer has to guarantee time to the employer according to the step they wish to take, be it searching for a new job, training to upgrade their qualifications or counseling to come to terms with their dismissal (PAINTER et. al. 2004). The program for support in business transition is invaluable to the needs of the employee at this time. In view of GORDON and GORDON (1998), the employer should not retain the employee for long after the decision to make them redundant. The employer should provide the employee with the option of ending their employment by accepting payments immediately in lieu of the short notice given, so long as it is convenient for both parties. . Methodology Given the need for analysis and comprehension of facts related to the topic of this paper, this research will provide well researched qualitative information obtained from in depth research on secondary materials that relate to redundancy. The research highlights on the rationale and reasons of redundancy from an employer’s perspective. Research information and data was obtained through review of scholarly materials on redundancy. The information has been analyzed and from it the reasons for redundancy and the general concepts of redundancy are generated. The information gives an insight into the need for redundancy from a financial perspective. Where the financial value of a dismissal is compared to the cost of opting to redeploy or maintain an employee all the same. Other factors as time to be lost in the processing of separation of employment are considered. The methodology seeks to enhance comprehension of the ethical related to the research. The ethical issues will look at the major social effects of the choice of the methodology applied. Ethical Issues Obtaining information from secondary sources that contain relevant details in relation to redundancy may raise negative social notions regarding the credibility of the information presented. These problems however do not arise from the methodology itself, but the persons who carry out the research. The problems are manifest in different ways. First, the act of plagiarism is an academic ethical issue. Researchers can decide to use information from a resource material or from the internet, but never recognize the source of such information through proper referencing. Information that has not been referenced is assumed to belong to the researcher yet that may not be the case. Another form of the ethical issue that undermines is improper handling of information. Researchers may deliberately or unknowingly present wrong information. 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EMPLOYMENT - Peter Walker warns of the traps employers can fall into if redundancy is handled insensitively. The Solicitors' Journal. 139, 851 WALKER, T. (2013). Employment Is it becoming easier to use business needs & employees' performance for a focused redundancy exercise? The New Law Journal. 163, 10-12. WHITE, P. J. (1983). The management of redundancy. Industrial Relations Journal. 14, 32-40. Read More