Getting this wrong could be costly. An unfair dismissal award can cost up to £90,000, whilst there is no limit for discrimination awards.
There are strict rules to follow on issues like:
- consultation process
- selection process
- notice period
- payments due to staff
One option might be to subscribe to a human resources (HR) support service, which will both provide guidance and indemnify you against legal action, at a substantial annual cost (i.e. measured in thousands rather than hundreds of pounds).
However, before you do this you should check what your employer’s liability insurance covers. In particular, check with your insurer whether there is a free legal advice helpline that comes with your policy. This is not always well publicised, and you may have access to this option without realising it.
If you do use a telephone help-line, try to establish email contact with your advisor. Even if they won’t provide written advice, you can use one-way emails to (a) frame your questions and (b) create a memo of what you have understood from the telephone conversation. It may place the onus on your advisor to correct any misunderstandings.
We would always recommend seeking professional HR expertise. However, if you cannot afford a full HR support contract (with indemnity), then at least one of your Committee members should make it their business to learn the rules around redundancy. (If you are already a subscriber, it might be unwise to seek savings in the face of a funding crisis by terminating your subscription!)
If you have some knowledge already of HR, then the free sources of advice listed below are available to support your approach. The Voluntary Sector Legal Handbook (cost of around £60), can provide wider contextual knowledge as well as a ready reference for queries.
For further guidance, see: