Letting GO

SIDEBAR: Take No Risks

An ounce of prevention can prevent a pound of cure

by Brad Swebeck, Swebeck Legal

The best practical advice for managers faced with the possibility of large-scale redundancies is for them to identify the legal and practical risks by following a simple check list of items that must be considered. The following is a guide only and must be tempered to meet the circumstances of each case.

• When is a final decision being made about the number of retrenchments?
• Should voluntary redundancy be offered before any forced redundancies?
• Which trade union has coverage (or potential coverage) of employees?
• What award or industrial agreement applies?
• What do the contracts of employment or letters of appointment state?
• What legal jurisdiction will the dismissals occur in?
• Are there any laws that set out the scale of payments to be made?
• What is the corporate HR policy on retrenchment?
• What is the corporate history on retrenchment?
• Is there different treatment for award and non-award employees (if so, is it discriminatory)?
• What are the alternatives to retrenchment?
• What services will be offered to employees (counselling, outplacement)?
• Are there restraints of trade in place?
• What are all the financial obligations to the employees?
• Is HR involved?
• Is the media office involved?
• What will be the practical, industrial implications of downsizing (industrial dispute, boycotts, union campaign, employee pickets, productivity loss, injunctive relief, award extension and so on)?
• What are all the legal implications?
• What is the communication plan?
• Is there an industrial relations strategy?

SIDEBAR: Safe Exits

By taking a few basic precautions, CIOs can reduce the risk of IT sabotage

• Prepare well beforehand.
• Seek the cooperation of the staff - change passwords, sometimes within minutes of retrenchment.
• Be aware of potential conflicts of interest and loyalty which may arise when managers are retrenched.
• If possible, have IT support staff in meeting while person is being retrenched - ensure there is immediate loss of access to minimise the opportunity for sabotage.
• Networks and firewalls need to be designed so that someone with internal knowledge cannot access the system.
• Ensure managers are alert to disaffected employees and, if necessary, make them responsible for the employees' actions.

SIDEBAR: Brand Awareness

Rules to follow for effective redundancy and minimal damage to the organisation's brand

by Mark Burnicle, Robert Walters

Never inform employees on a Friday or Monday; midweek is preferable to avoid unsettling staff.

Never inform staff prior to a work function.

Inform staff before Christmas and not after to ensure staff do not spend money they are unaware they may not have.

Prepare a checklist for the removal of security identification, office property and items such as a company car.

Set a time and date for the person to leave.

Arrange in advance all severance pay and entitlements and ensure they are accurate.

Prepare a script and agenda for the discussion.

Check union award requirements and ensure you check with your IR legal team.

Keep to the scripted announcement details.

If possible, ensure outplacement support is on site throughout the process.

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