Redundancy

A Scary Word Now!

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Taslim Ahammad :
Who wants to hear thefeared wordredundancy! It is a term that has severely negative inferences also redundancy is unquestionably a contemporary issue in these days. Privatization, mergers and acquisitions, outsourcing, and economising are the responses that organisations mainly give to keep up with the world’s economy; however, it is downscaling that is the most frequent of all, often being an element of actions taken in other strategies as well.
The utmost successful businesses sometimes find themselves in situations where they need to rearrange and economise the level of their workforce by making redundancies. There may be a number of not the same reasons for this such as needing to reduce costs to make an organisation sustainable. Administrative redundancy and other business restructuring procedures that consist of redundancy primarily target at easing the negative effects of economic recession, at improving productivity and efficacy, also to ensure the business’s competitiveness, sometimes even mere continued existence. On occasion, HR needs to let go of an employee because their services are no longer required.
Redundancy when the employee is asked to leave or laid off if there is no work. Redundancy is one of the reasons for the removal from job of a person’s employment under fixed-term contract. When someone loses the job and business get someone else in to fill it that is not a redundancy. Conversely, rather than being a fault-based dismissal, redundancy is commonly affected by factors such as economic conditions, business efficiency, or technological advancement.
Redundancies can be controversial, particularly if businesses essentially select who is to be made redundant. On the other hand, there are lots of reasons why you might be made redundant, such as: (i) new technology has made job unnecessary (ii) the job were hired to do no longer exist in the organisation (iii) employer needs to cut costs by reducing staff numbers (iv) the business is closing down or moving (v) recession / economic downturn (vi) the business has been bought by another business organisation.
Despite the fact, it is important not to be blinded by this emotion and not to let it prevent from making the right business decision, making an employee redundant always needs to be done legally, and with the right amount sensitivity and considerate. The employee/s chosen to be made redundant and why should be clearly explained to staff/s with no prejudiced reasons. There should also be an appeals procedure in place in case employee disagree with the decision or think they been unfairly selected. Employer may include qualifications and skills as part of their reasons; however, it should not be based on these alone. Other reasons maybe: (a) attendance record (b) disciplinary record (c) skills or experience (d) standard of work performance (e) successes at work or lack of them.
Redundancy may bring about positive and/or negative reactions from both survivors and the business itself. The persons’ characteristics, the way how redundancy is managed, and the business’s specific features are in the background of the different reactions.
Typically, the unfair redundancy process, job insecurity and negative changes in the work procedures are in the background of negative survivor reactions. The effective conduct of economising and the business’s management are key factors in escaping high level of apparent insecurity and ensuring motivated workforce. Therefore, it is important to remember:(i) staff receive honest, straightforward and detailed information; (ii) workers realise why reducing is unavoidable; (iii) the antecedents of economising are made clear for workers; (iv) staffs are not unclear about their future; (v) staff find the selection criteria fair and reasonable; (vi) redundant receive fair treatment and are given proper redress; (vii) better post redundancy workloads are justly shared; (viii) workers are involved, to a greater or less extent, in the decision making processes; (ix) likewise, survivors receive an appropriate treatment, and the business offers training opportunities and facilitates the acquisition of marketable knowledge; (x) business ensures workers’ self-sufficiency, varied work tasks and opportunities for development in order to rise work motivation.
Business, often and maybe most unfortunately, fail to count upon the negative outcomes that might ensue from reducing, thus, instead of getting into an expected better situation. The immediate of possible outcomes of redundancy could provide a point of reference for managers in planning effective procedures and drawing up action plans, and it could also be helpful after reducing to minimize the negative effects. Prepared with the full knowledge of the possible outcomes, business can get organised for the potential difficulties they maybe face.
If an employee who has worked continuously for an employer for at least two years and staffs are being made redundant, employee/s have the right to redundancy formalities/pay. Employees are also eligible if they have a fixed-term contract of two years or more that expires and is not renewed because of redundancy.
As long as organisations are aware of how to go about such a situation and follow those rules punctiliously, the law allows for the business to consolidate and then rebuild the organisation hopefully in order to create better employment opportunities at a later phase. HR department may advice/ensure that you receive practical guidance and support to ensure that the redundancy procedure is implemented in a fair, consistent and compliant manner.

(Taslim Ahammad, Chairman, Tourism and Hospitality Management, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, Gopalganj)

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