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Handling redundancies amongst employees is undoubtedly one of the most stressful and complex challenges that HR departments encounter. In addition to the emotional stress this process causes for all parties involved, significant logistical and legal implications also come into play. Furthermore, it is crucial to ensure that the employee receives adequate support during the leaving process—not only for their well-being but also to protect the organisation’s reputation.
To effectively manage redundancies, HR departments should develop a clear communication strategy. Open communication can help ease the emotional burden on affected employees, allowing them to understand the reasons behind the redundancy and the processes involved. Additionally, providing resources such as counseling services or job placement assistance can significantly support employees during this difficult transition.
Moreover, HR should focus on maintaining morale among remaining staff. When redundancies occur, the morale of the remaining employees can suffer due to uncertainty about their own job security. To address this, HR departments can organize team-building activities or provide reassurance about the organisation’s stability and future direction. By taking proactive steps, HR can not only mitigate the impact of redundancies but also foster a positive workplace culture in challenging times.
Redundancy refers to an employee’s dismissal due to a reduction in the business’s need for their services. According to the UAE Labour Law, redundancy regulations are outlined under Ministerial Resolution 279 of 2020. In such cases, employers are required to provide their employees with sufficient notice, typically 30 days, along with notice pay if the employee has completed their probation. Furthermore, employees are entitled to receive end-of-service payments, assuming they have completed one year of service. Additionally, employees have the right to compensation for accrued and untaken annual leave, repatriation flights, and any other elements stipulated in their contract.
However, the actual rights of employees in each case depend on the specific rules outlined in their employment contract. Under the Resolution, employers are also required to consider placing an employee on unpaid leave, provided both parties agree to this arrangement. If an employee is made redundant, employers must continue to provide certain benefits, such as housing, transport, and medical insurance, until the employee either leaves the UAE or secures alternative employment. Importantly, salary is excluded from these ongoing benefits.
This article provides you with five tips you can follow to help you manage the process effectively.
It is essential to dedicate time to carefully selecting which groups of employees to make redundant. There are several ways to group employees depending on the reason for the redundancy, such as:
♦ Employees in similar roles;
♦ Employees in specific departments or sections;
♦ Employees based in a particular location;
♦ Employees whose work has either stopped, been reduced, or is likely to stop soon.
Some of these options are easier to implement than others. For instance, when an entire department or physical location closes, everyone involved faces redundancy. However, when employees in different departments or teams perform similar roles, it becomes more challenging to identify who should be selected. This makes the decision-making process more complex.
Offering voluntary redundancy rather than making central selections can simplify the process. This approach depends on the specific circumstances, but it allows employees to feel more in control and perceive greater fairness during uncertain times. Voluntary redundancies often address the company’s needs. However, when participation is too high or too low, management may need to step in and make selections. Employees who choose redundancy still receive the same legal rights as those under compulsory redundancy.
Meeting with employees to explain the redundancy, outline the process, and address individual concerns plays a crucial role in handling redundancies effectively. However, managing the emotions involved makes it one of the most challenging aspects. The pandemic has made this process even harder, as face-to-face meetings have been restricted. Despite this, online meetings should still be included in the process.
For these meetings to work, the HR representative needs to prepare thoroughly with facts and handle employees with empathy, especially when they feel angry, hurt, or upset. Multiple meetings will likely occur as the employee approaches their departure. In organisations with a large expatriate workforce, frequent meetings are common, especially when dealing with end-of-service benefits, visa cancellations, repatriation, and the impact on family sponsorship.
If there is any chance to reallocate the employee to another position within the organisation, management should explore this option. Finding roles with similar grades and benefits packages can pose challenges, but most organisations expand the search to a lower grade if feasible to provide the best opportunity. In an expatriate labor market, benefits packages can often be deal-breakers for internal transfers, especially when elements like education allowances make reduced packages unworkable.
Additionally, organisations should actively support employees in finding work in the broader external marketplace. This support can include helping with CV structuring, offering training allowances for skill development, providing paid time off for job searches and interviews, posting CVs on job boards, and using contacts in other organisations.
No matter how well the process is planned and executed, the final few days before an employee leaves are filled with emotions. They are not only losing tangible benefits like their income but also their colleagues and the sense of belonging to the organisation. These feelings can intensify, especially after a long period of service. It is crucial to show empathy and provide support in a way that makes the employee feel most comfortable. For instance, some may want a farewell gathering with colleagues, while others may prefer to leave quietly without public acknowledgment.
As an organisation, the more support you offer during this stage, the greater the chance that the employee leaves with a positive experience and can adjust at their own pace to the new reality, particularly if they face unemployment. Additionally, it is important not to overlook the employees who remain, as they may fear being next or feel a sense of loss, both of which can diminish their motivation and engagement.
Redundancy creates a challenging time for HR and employees alike, so any efforts to make the process fair, empathetic, and respectful will significantly benefit everyone involved. By taking the time to plan and execute each step correctly, you demonstrate respect for your employees and help protect your reputation as an employer.
Fairness in the redundancy process is crucial. When employees perceive that the process is equitable, they are more likely to accept the decisions made, even if they find themselves on the receiving end. Therefore, it is essential to establish clear criteria for selecting employees for redundancy. Additionally, documenting the rationale behind these decisions can help reinforce transparency and accountability.
Empathy plays a vital role during such challenging times. Acknowledging the emotional impact of redundancy can foster a supportive environment. For instance, offering one-on-one meetings with affected employees provides an opportunity for them to express their feelings and concerns. Moreover, ensuring that managers receive training on how to handle these discussions with sensitivity can enhance the overall experience for everyone involved.
Moreover, it is important to respect the contributions of employees throughout their tenure. Hosting a farewell gathering or sending a personalized message can go a long way in recognizing their hard work and dedication. By doing so, you not only honor their efforts but also leave a lasting positive impression that reflects well on your organization.
Ultimately, by implementing these strategies, HR can navigate the redundancy process more effectively. This approach not only minimizes disruption but also preserves the dignity of all employees, fostering a culture of respect and understanding within the organization.
Contact us at HRBluSky today to explore how we can support you in managing your workforce.
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