Question

4.1 Advise organisations on good practice in the management of redundancies and retirements that complies with current legislation. Guidance (4.1) You Must cover all the three areas (dismissals, retirements and redundancies) You Must cover deal how to carry good and legal practice, which could include two examples which could include: Keeping up to date with legal updates Following legal process and guidelines Conducting HR practice in an Ethical way, i.e. not discriminating Following and keeping up in house policies up to date This is not an exhausted list – there are more to choose from. Redundancies – discussion must include: Fair reasons for redundancies. (Bullet points are fine) Retirement– discussion must include: No law linked to enforcing the retirement age Relevant legislation such as Equality Act 2010 (discrimination). Dismissal 5 fair reasons for dismissal. (bullets are fine)

Answer 1

Redundancies - These are the workers whose services are no longer needed by the employer. There may be a number of reasons for redundancies, including

(a) Restructuring of the organisation where workload is redesigned and some roles become redundant.

(b) Employee cost eating into the profitability of the business, causing it to scale down the workforce to make it sustainable.

(c) Some roles become redundant owing to the technological innovation or automation of processes.

(d) A merger or takeover of an organisation which may involve a change of guard, and change in employee policies followed by retrenchment.

The redundancies must be reasonable and unavoidable, and should be done only as the last resort to save the organisation from becoming unprofitable. There should be efforts to upgrade the skills and make the existing manpower to fit the bill, as much as possible.

2. Retirement - It is superannuation of the employees who are deemed to be unable to perform their existing duties with the same level of dedication and efficiency owing to the age related issues, such as lack of concentration, lack of physical vigour, decline in the decision making ability and age related deficiencies and ailments. The causes for retirement are

(a) Lack of decision making ability, particularly in tasks where risks are high, such as driving a bus.

(b) Decline in  physical endurance with age, needed for the role, such as in military operations, security duties, sports and like.

(c) Inability to perform the duties satisfactorily owing to poor health and age related issues.

Having said that, it must be kept in mind that there should be a common policy, applicable for all such roles which may be affected by the factors listed above, to fix an age of retirement irrespective to the gender, race and ethnicity of an employee. For the cases which are not fit fro the job due to poor health, there should be a clear policy of accommodation of the employee in alternate employment, and the retirement be used as a last resort, that too with all necessary evidences and documentation in place to comply with law.

Dismissal - It is an act of removal of an employee from his job, owing to a number of reasons such as

(a) Financial irregularities or embezzlement that has caused or capable of causing harm to the organisation.

(b) Act of arson or physical violence at the workplace.

(c) Acts which are against the morality and human values, such as sexual harassment or intimidation of co employees, bribery, mala fide intentions and conduct.

(d) Acts of unlawful nature such as theft, murder, arson, violence, within or outside the organisation.

(e) Disobeying the orders of the superiors and working against general order of the organisation, thus causing gross indiscipline.

The dismissal should be done after the due procedure of thorough investigation of the matter. However, there should be zero tolerance for certain offences like sexual misconduct, immoral acts and unethical behaviour.