Collective redundancies. Communication of redundancies.

The provisions of the Act on Group Redundancies regulate the procedure to be followed by employers when dismissing large numbers of employees. This procedure requires employers to inform employees and consult with them on the terms of dismissal. However, the statutory obligation is limited solely to employee representative bodies – trade unions or representatives elected for this purpose if there are no trade unions in the company. The Act is silent on how to communicate redundancies to individual employees.

It is worth remembering, however, that regardless of the need to carry out collective redundancies in accordance with the law, the success of the entire undertaking may depend on how it is communicated to employees. For many of them, especially those who have been with the company for many years, the need to look for new employment will be a stressful experience. Therefore, the way in which the company addresses the related doubts and emotions may determine its future image as an employer and its attractiveness on the labour market when the economic situation changes.

In practice, collective redundancies are a difficult process not only for the employees being made redundant, but also for the employer who has to carry out and communicate the redundancies. That is why it is so important to be well prepared for the meeting with employees (or their representatives).

So what should you keep in mind?

Group communication

The method and form of communication should always be tailored to the recipients of the message. Those responsible for communication should also be prepared to answer difficult questions asked by employees, e.g. about the course and timeframe of the process and the benefits provided to employees. If such answers are not available, it is sometimes better to postpone the meeting with employees than to give them the impression that it did not provide answers to their most pressing questions about their future.

On the other hand, prolonging the state of uncertainty is also not recommended. Usually, news of planned redundancies spreads through the workplace like wildfire – sooner than the employer would like. This obviously has a negative impact on work performance and team commitment.

Often, a single communication meeting with employees proves insufficient. This is especially true if employees are surprised by the employer's decision to reduce the workforce. As a result, they may not ask all the questions they have about the process. These usually only arise after some time has passed. Employer representatives should therefore be available to employees to answer these questions. This may allow the employer to manage negative sentiments within the company. It is therefore worth planning question and answer sessions in smaller groups or providing employees with a dedicated e-mail address or telephone number to which they can direct their questions. However, it should be remembered that this may place an additional burden on the HR department. This is where most questions about the redundancies will be directed.

When preparing to communicate with employees, it is important to explain the reasons why the company has decided to take such drastic measures from the perspective of individual employees. It is also worth having a detailed response prepared regarding the measures taken by the company to prevent redundancies. It is important to be prepared for a negative reaction to a situation in which the employer passes on the full impact of the difficult economic situation to employees in order to maintain the results forecast in the budget for the year.

Employees should also be informed about the criteria used to select those who will be made redundant. Clear criteria in this regard can help to manage employees' expectations about their future. The situation seems straightforward when an employer (e.g. for technological reasons) decides to close a particular department and make all or most of the employees assigned to it redundant. However, where only a reduction in the number of positions is involved and it is necessary to select employees for redundancy, emotional reactions and often a lack of understanding of the employer's decision must be expected.

It is also necessary to describe the entire redundancy process, in particular the planned time frame, so that employees can prepare themselves and look for new employment. If the redundancy process is spread out over time, e.g. several rounds of redundancies are planned, depending on how the situation develops, it is also worth informing employees about this so that they are not surprised in the future.

It is also important to remember to present the terms of the financial package offered to the employees being made redundant. From the perspective of the employees being made redundant, this will be one of the most important, if not the most important, pieces of information in this situation.

If the company is taking any extra steps to help employees find new jobs or start their own businesses, or even increasing severance pay, it is worth making this clear in your communication. These kinds of actions will affect the employer's subsequent reputation and attractiveness on the labour market.

Individual meetings

The next step will be to talk to individual employees. Documents informing the employee about their dismissal should never be handed out in a group setting. This would violate the employee's privacy.

The conversation should generally follow the same procedure as when parting ways with an employee for reasons attributable to them (e.g. improper performance of duties); with the difference that, in addition to the employer's intention to terminate the employment contract and the reasons behind it, the employee should also be explained the circumstances behind his/her selection for redundancy.

Similarly, individual interviews conducted as part of a collective redundancy do not have to be attended by a trade union representative or other employee representative. However, it should be remembered that in some countries, the ‘assistance’ of such a representative or proxy is required during the meeting at which the employee is given notice. When coordinating a redundancy process in several countries, it is always worth checking the local differences in this regard.

It is also advisable for the employer to have at least two people who can testify to the course of events in case of any unforeseen circumstances.

Remaining employees

Finally, it is also important to manage the mood of the employees who remain in the company after the redundancy process is complete. For these people, collective redundancies can also be a difficult experience due to their relationships with the employees who have been made redundant. The future of the company will depend on the work and commitment of those who remain. It is therefore worth providing them with information about future plans so that they can focus on achieving the company's goals and development.