The recent announcement by NHS England and the department of health and social care that around 18,000 administrative and managerial roles are to be cut, has sent shock waves through the health sector and beyond.
The Government has approved a £1bn one-off fund to cover redundancy costs and has permitted the NHS to overspend this year in order to pay for the termination of several employment relationships. While the stated aim is to ‘cut unnecessary bureaucracy’ and re-deploy money into front line services, this kind of large-scale redundancy programme poses major employment law risks for any organisation.
The departments position is that taxpayers must be assured that “every penny” is spent wisely, hence these cuts to back-office roles. For organisations (within or outside the NHS), the lesson is clear; large headcount reductions must be backed by a strong business case, clear rationale, and a legally sound process.
Legal duties for employers
When large scale redundancies (20 or more staff members within 90 days) are in place, employers must actively:
Consult collectively with recognised trade unions or elected employee representatives
Notify the secretary of state using the HR1 from
Conduct fair selection processes based on an objective, non- discriminatory criteria
Explore alternatives such as redeployment, retraining or voluntary redundancy.
Provide proper notice and redundancy pay in line with statutory rights.
Failure to comply with such requirements can expose the NHS, or any organisation for that matter, to claims for unfair dismissal.
Practical routes forward
In such situations, early planning is key. Employers should begin by mapping business justification, workforce impacts, potential alternative roles, and consultation protocol as early as possible. Documentation of the rationale, selection criteria, consultation minutes, responses, alternative options considered, employee suggestions are just a few of the key records to be kept should later challenge occur.
Large scale redundancy programmes inherently permit anxiety for both an employee and employer and therefore clear communications, involvement of employee reps/ trade unions and genuine discussions help alleviate risks of claims, feelings of uncertainty and reputational damage. In saying this, an employee is never just a number, the commitment, hard work, and dedication is to never be ignored and therefore in offering alternative roles or providing career transition services, redeployment support, or training, reminds an employee of an employer’s willingness and appreciation.
Ultimately, the NHS redundancy announcement is a high-profile example of a large-scale workforce reduction undertaken in response to cost, efficient and transformation imperatives. However, in any redundancy we radiate the importance of applying a rigorous legal and procedural framework when advising on redundancies. The key principles of redundancy being it must be genuine, fair, consist of meaningful consultation, have an objective selection, and explore alternative options are pivotal to deter from tribunal claims. It is more important, now than ever, as the legal environment shifts, to consider the necessary criteria in large scale redundancies.
If you are an employee being made redundant, or an employee considering large scale redundancies, or small, Contact Us now.
