Question

DIPLOMA Assignment
January-June LR 112 - Labour Relations
© BOU 2020 Page 2 of 3
SECTION A [25 MARKS]
Answer ALL questions in this section
Read the following and answer the questions that follow
REDUNDANCY
Redundancy is when an employee is no longer required to work, through no fault of their own.
Redundancies occur when employees are dismissed because their job no longer exists. Usually
this happens when the employer no longer requires that job to be done by anyone and hence that
job becomes redundant. Redundancy is caused by a mix of factors such as decline in level of
economic activity in the organization, technological changes, cost reduction initiatives,
downsizing, merging with another company, economic recession, and business relocation among
other many factors. The right to be collectively consulted applies when an employer proposes to
make 20 or more employees redundant at one establishment over a period of 90 days or less.
Employers should also consult individual employees. Case law has shown that dismissals have
been found to be unfair where a union has been consulted but not the individual. In the UK,
employees who are selected for redundancy must be given a notice period before their
employment ends. The statutory notice periods are:
 At least one week's notice if the employee has been employed between one month and
two years
 One weeks notice for each year of employment between two years and 12 years
 12 weeks notice for someone who has been employed for 12 or more years.
Fortunately, employers have a free hand in setting the selection criteria they want to use. As long
as the criteria are measurable and applied fairly, then a tribunal is unlikely to interfere. TEBOGO
INTERNATIONAL Botswana, a mining giant, for some of these reasons, is deciding to lay
redundant some of its employees. The company however is not aware of important factors for its
redundancy selection process.
Required:
Advise, with practical justifications, the most important factors that Tebogo International Pty Ltd
has to consider to ensure its redundancy selection criteria are objective and fair.

Answer 1

Redundancy selection is the trickiest process for HRM of the Company. The company must follow the basic criteria such as non-discriminatory selection process, clear selection criteria consideration of proper evidences to support employee score, consistency, etc.

First of all Tebco International Pvt. Ltd. must select the group of employees which will be called as redundancy pool. From this redundancy pool the company must select the employees which are to be layed redundant. This redundancy pool must be selected very carefully so as to avoid any legal discrimination.

From the redundancy pool, the score board or selection sheet should be prepared for the employees who are selected in the redundancy pool.The score board or selection sheet must be prepared on the basis of skills, attendence, qualifications, performance, etc of the employees so selected in the redundancy pool.

The company to b fair and non-discriminatory in its redundancy selection criteria must follow following steps:-

The criteria for selecting the employees in redundancy pool must be fair and objective. The reliable information must be used to prepare the score board of employees. The company can also follow LIFO ( last in first out) method for redundancy.

The company can also go for self redundancy or voluntary redundancy process. In this process, the employees opt for self redundancy. This process is most hazzle free and tension free process for the company to follow.

The company should have proper reason for redundancy, such as the closure of business or th company is genuinely in the need to decrease its employees.

The company must communicate with the employees about such redundancy. The employees must be communicated about the situtaion the company is facing which led to redundancy. Employees must be interviewed so as to test their knowledge and skills.

The company must also consider alternative methods for redundancy. These methods may include methods like, decreasing the overtime of the employees, no further recruitment, etc.

The company must give proper notice of dismisal to the employees so selected for redundancy. The notice period must be based upon the employment period of the employees in the company.

The company must be pay redundancy pay to the employees layed off in resundancy process.

The company must consult employee union or representatives of the employees before preparing the score board or selection sheet for the employees selected in redundancy pool.The company must also look into appraisal records of the employees for redundancy, which is also a very positive approach.

Redundancy is a very challenging process and stressful for both company as well as employees. Thus, the company must follow above mentioned criteria to be fair and objective in their redundancy process.