Redundancy checklist

Preparing for redundancy

Redundancies can be a stressful process to prepare for as an employer, not only emotionally. We are dealing with people and our actions directly affect their lives, but we also want to make sure it is handled professionally.

It is important that all appropriate steps are considered and executed smoothly. Based on our involvement in large scale and individual redundancies, we have compiled a checklist of steps to assist you in your planning and possible execution of a redundancy program.

Most of the time is spent in the preparation phase. We have found that solid preparation is the foundation for a successful implementation of a redundancy.

Redundancy checklist

Redundancy checklist

Preparation

  • Discuss redundancy considerations with appropriate stakeholders
  • Obtain legal advice if required
  • Redundancy confirmed to go ahead
  • Engage outplacement company
  • Calculate redundancy entitlement
  • Calculate leave and notice entitlements
  • Organise for payment of pay and entitlements
  • Obtain from outplacement company – Welcome onboard letter
  • Prepare redundancy conversations with other employees and uninformed stakeholders
  • Decide if the employee(s) is / are to work out any notice period 
  • Prepare for the meeting (format and attendees)
  • Prepare how to handle referees for the employee (who can provide references and format)
  • Create an implementation list with a timeframe for execution – including what takes place during the meeting
  • Return of company property including office keys, laptop, mobile phone, vehicle, uniform, tools, etc.
  • Cancellation of employee access to computer systems
  • Remote server access
  • Cloud-based software
  • Mailbox (emails forwarding)
  • Mobile phone voicemail / diversion
  • Phone extension diversion
  • Mitigate the risk of harm to the company from the employee
  • Job duties handover
  • Cancellation of subscription payments
  • Handover of company credit card
  • Handover of company car / fuel card
  • Prepare a checklist of what actions need to be taken post-implementation
  • Prepare communication strategy for employees and other stakeholders
  • Timing (when)
  • Format (individual or group)
  • Media (verbal, email or video)
  • Internal stakeholders - for example:
  • Managers
  • Employees
  • Payroll
  • Externally - for example:
  • Union
  • Workers' comp insurer
  • Superannuation fund
  • Centrelink
  • Clients
  • Suppliers
  • Read through the employment contract to ensure:
  • You as an employer comply with your obligations
  • The employee can be made aware of their obligations
  • Decide by whom and how these obligations should be communicated to - for example:
  • The employee
  • Internal staff
  • External stakeholders
  • Decide on:
  • When to make the redundancy
  • When to send the meeting invitation
  • Location of the meeting
  • Prepare the paperwork
  • What happens after the meeting

Implementation

  • Initiate the redundancy process
  • Communicated redundancy to employee
  • Provide the employee with:
  • Written notification of redundancy including contractual obligations
  • Redundancy entitlement letter including outstanding entitlements
  • Welcome onboard letter from outplacement firm
  • Notify the employee whether a notice period is to be served, or payment in lieu of notice
  • Provide the outplacement firm with the employee's contact details and confirm the redundancy
  • Pay employee final pay on the day of the redundancy
  • Make sure all items on the implementation checklist are covered before the meeting is concluded

Post-implementation

  • Complete the implementation checklist
Considering outplacement?

Considering outplacement?

Now that you have explored our redundancy checklist, you should take a moment to check out our outplacement services.

Our experience in recruitment means we know the ins and outs of the job market and can provide candidates with solid career advice.

So, if you're considering making staff redundant and would like to provide them with personal and professional support, click the button below to learn more about our services.

 Outplacement services →
Christian Madsen

What are your thoughts?

I'd love to have a conversation with you about this topic - please leave a comment below if you have any thoughts or opinions 🙂

Christian Madsen

Managing Director of 11 Recruitment

Connect with me on LinkedIn →

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