Redundancy by email: a failure of HR

16 Feb 2011

It may seem odd to think of soldiers as being like other employees - employees do not usually risk their lives on a daily basis. Yet the 38 warrant officers given notice of redundancy this week by email due to Ministry of Defence (MoD) funding cuts have brought into focus a point that is relevant to all employers.

When the story appeared in the newspapers, it was picked up by BBC radio. The MoD was quick to apologise and to reassure the public (and the media) that, since the email, officers had spoken directly to the soldiers affected and provided "all necessary advice and support".

Why did the MoD do this? The answer is: to protect its reputation as an employer that cares for its employees. Whatever the strict legal rights and wrongs of the situation, no employer wants to appear callous in its treatment of the people who work for it – particularly long-standing workers.

In today’s economic climate, redundancy is the most common reason to dismiss an employee – but having a legally ‘fair’ reason to dismiss is only half the story. How an employer carries out those dismissals is just as important to the overall fairness.

Redundancy dismissals have featured a lot recently in employment tribunal cases, reflecting the economic downturn. The tribunal decisions have emphasised that even a compelling business case for dismissal needs careful handling, notably around advance warning and consultation, including whether there should be any dismissal at all.

This can sit uneasily with commercial imperatives not to unsettle more of the workforce than necessary and to get the job done quickly. But announcing dismissals with little or no advance warning by email or text message – as happened recently to Dundee barmaid Karen Ogilvie – is exactly the sort of treatment the public (and employment tribunals) object to.

The clear message is that redundancy dismissals are not the fault of the people affected and require investment of time and a personal touch. This can be hard to find time for when resource in HR teams is stretched, but the consequences of over-systematising the process are evident and go beyond individual claims for compensation.

After all, anyone considering joining the armed services (when times improve) may think twice if they remember how long-serving soldiers have been treated. It is much harder to quantify the cost of a damaged reputation.

Selwyn Blythe (pictured) is partner at law firm Pinsent Masons

subscribe