Body Shop Redundancies: The Redundancy Process

The recent redundancies at The Body Shop have put the spotlight back on the issue of redundancy in the workplace. Administrators for The Body Shop have been accused of making 270 workers redundant over Microsoft Teams after the firm announced it had gone into administration. This included at least 15 women on maternity leave, or women soon to have their baby, who were not provided with a redundancy package, as reported by the Independent.

The Body Shop is not the only company to have faced criticism for conducting mass sackings over a video call, with P&O Ferries having fired 800 workers over Zoom. Employees at the cosmetics and skincare company were instructed to go to the Redundancy Payments Service to claim unpaid wages and holiday pay.

The Redundancy Process:

Under employment law, employers and administrators have obligations to employees when faced with the need to take cost-cutting measures. It is important that a correct redundancy process is followed, including informing and consulting with employees and carrying out a fair redundancy process. However, notifying workers of financial concerns can present its own challenges for a company in financial difficulty, it could for example lead to employees leaving, which in turn can damage the chances of a sale of the business and potentially worsen the employees’ position. In a sense the law is in conflict, on one had there is a duty to consult in good time in the event of potential redundancies, on the other an administrator has a duty to protect the value of the business.

When making employees redundant, it is crucial for employers to handle the redundancy process with sensitivity and care in order to minimise the impact on the affected employees.  The following steps should be taken by employers to ensure that redundancies are carried out in a fair and respectful manner (there are additional duties for large scale redundancies, defined as 20 or more staff at one site – this is outside the scope of this article):

• Evaluate business needs and explore alternatives to avoid redundancies, such as reducing hours or offering voluntary redundancies.
• Consult with affected employees in good time, discuss the reasons for redundancies and seek input from employees.
• Establish a clear and objective criteria for selection of employees for redundancy, applying the criteria consistently and fairly. Avoid any criteria that could be discriminatory.
• Notify affected employees in a face-to-face meeting, providing written confirmation of the redundancy and details of notice period and entitlements.
• Provide support and assistance to employees being made redundant, including outplacement services and access to counselling.
• Communicate openly and honestly with all employees throughout the redundancy process, addressing concerns and providing updates.

Employers can help to minimise the impact of redundancies by following these steps and ensuring that the redundancy process is handled with care and consideration for the affected employees. By consulting with employees, applying fair selection criteria, providing support, and communicating openly, employers can maintain positive relationships with their remaining staff and navigate the challenging process of making employees redundant in a respectful and lawful manner.

How can Taylor Bracewell’s Employment Law team can assist you in following the correct redundancy process?