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GKN MELROSE: POLITICAL REACTION TO HOSTILE TAKEOVER

GKN MELROSE: POLITICAL REACTION TO HOSTILE TAKEOVER

Melrose Industries has narrowly won its hostile takeover bid for GKN.

Following a ten-week battle that saw a war of words from GKN management as well as a number of alternative deals on the table, including a proposal from car parts maker Dana, the shareholders decided by a margin of 52 percent to sell to Melrose.

Despite assurances from Melrose, fears that the new buyer will simply wage a campaign of asset stripping as the takeover promises £8bn to be returned to shareholders, which will inevitably involve selling off parts of the business. Apart from car parts, GKN produces aviation components and has a number of defence contracts, leading to some speculation in the mainstream press that the deal might be stopped on national security grounds.

Business Secretary Greg Clark sought assurances from Melrose, saying that no company was ‘immune’ from takeover. Critics were keen to point out that such ‘assurances’ mean little in law, as was demonstrated when Kraft went back on promises made to Cadbury in 2009.

However, Defence Secretary Gavin Williams appears not to share Clark’s lasse-fare opinion, as he is reported as having ‘serious concerns’ about such a deal.

Former Defence Secretary [and owner of Haymarket Group] Lord Heseltine is quoted in the FT as saying that ‘no other country of our sort’ would allow the deal to go through.

Labour’s Jeremy Corbyn has said that the deal ‘must be stopped’ and that it does not make any sense ‘to put the interests of city speculators over the national interest’.

On completion of the deal, the Head Office in Reddich is tipped to be the first part of the operation to close.

 

 

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PUTTING A CAP ON EMISSIONS

PUTTING A CAP ON EMISSIONS

There are plenty of filters out there, but how are suppliers helping garages with their selection?

TPS anti allegen dust and pollen filter

It’s hardly news that emissions are hot on the VMs’ agenda, notably with the ongoing initiatives encouraging customers to swap out their older diesel vehicles for cash to put towards a newer model. Whilst scrappage schemes have been widely adopted by the former, suppliers are also playing their part in filtering out contaminants that would otherwise cause engine damage and discomfort for motorists if left unattended.

AIR/CABIN AIR FILTERS
Jonathan Walker, Managing Director of manufacturer Mahle Aftermarket UK, says that as a general rule of thumb, technicians should be replacing cabin air filters at regular service intervals as a clogged filter is still a major contributing factor for under performance of the A/C system and losses in engine power. He also mentions that the installation procedure is not always plain sailing: “Fitting cabin filters is increasingly complex and garages spend a lot of time locating and removing other components to ensure a correct fit”, he replied, “Fixed price service has arguably had a negative impact as the time spent on replacing cabin filters becomes more pressurised. It all equates to the biggest contributor of failure, which is a clogged cabin filter.”

To assist workshops with these practices, Walker highlights that Mahle’s CareMetix cabin filters have played a crucial role in communicating these messages whilst offering improved health and wellbeing benefits for end- users. He elaborated: “Our Caremetix range comprises of a five-layer cabin filter specially designed to improve passenger health and wellbeing by removing nasty odours and harmful contaminants from vehicle cabins.” He continued. “Garages can offer customers a tangible difference as the innovative range provides five- layer protection against allergens, brake dust, diesel soot, fine particulates and tyre debris that is proven to enter a car from exhaust fumes.”

Attempting to achieve a similar goal is Hella Hengst, a distribution partnership between Hella and filtration brand Hengst which launched last year. “The focus is to support workshops with point of sale material and marketing strategies that help inform the end user of products being fitted”, said Mark Adams, Product Manager at the firm. “The company also takes extra steps to include fitting instructions/ location guides for its cabin filters, which reduces time and allows workshops to maximise profit.” Adding that the supplied content points out the ‘benefits of premium quality products against the dangers of using those of an inferior design’.

ENVIRONMENT
Michelle Smith, Marketing Manager at TPS, explains that the organisation is economising through its Genuine Parts Range, with new pleated technologies. “In terms of materials, the filter media contains cellulose fibers which protects it against moisture, oil and fuel vapours. Depending on the application, fully synthetic filter media with a multilayer structure or with an additional nanofiber coating are used”. Smith noted, “Our Genuine Air Filters incorporate the latest materials and pleat technology to ensure that both performance and fuel economy are maintained throughout service life. In addition, our pleat technology has the ability to absorb dirt and dust particles whilst maintaining the optimum air f low into the engine for efficient combustion”.

HELLA Hengst portfolio

Sogefi’s Sales Manager, Jonathan Brooke said “Car drivers are not enough aware of the benefits of changing the cabin filters for their well-being. “The garages should more systematically inform their customers of these benefits. One good reason for doing it is that the end users can really feel the improvement: less dust and odours, better ventilation and defogging. These are strong selling points, that the customer will appreciate. In many cases the fact of showing the used filter – full of dirt and pollution- is the best selling argument.

THE FUTURE OF FILTERS
Touching back on the diesel market, UFI Filters Sales Manager Karl Ridings says the firm is armed and ready to service the next generation of vehicles complying with Euro Six and Seven standards. Speaking about this in more depth, he
said: “Thanks to the investments in R&D we supply filters like the Gen2Plus diesel filter”. He added: “Based on the availability of these technologies, UFI looks very confident in the future of diesel filter sales”.

Miten Parikh, General Manager at Comline, concurs and builds on Ridings statement, outlining that this ecological- type filter is becoming a more desirable choice among VMs particularly for their air modules. “As vehicle manufacturers become ever- more environmentally conscious the ecological-type filter is becoming more prevalent”, he continued. “Manufactured entirely from recyclable materials, many modern applications use this type of air filter and this trend seems likely to continue. Comline has in its range a number of fuel filter references with built-in water separators and sensors”.

With the multiple filter options available, workshops will certainly not be left starved of products that will result in repeat business and happy customers bearing in mind they follow the procedures outlined in this article.

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GDPR: WHAT’S THE FUSS?

GDPR: WHAT’S THE FUSS?

Time is running out to get your ship in order for new data regulations

The act of putting one product in the carton of another is something that we all know happens throughout the aftermarket at all levels.

There’s one product in particular that we know is packed in the UK in a dozen or more brand images – and no doubt there are others.

There has been little in the news about the new General Data Protection Regulation (GDPR), which comes into effect on 25 May, so it is hardly surprising that there are many people that either have no idea about it or assume that it has anything to do with them. Put simply, GDPR will give teeth to existing legislation, the Data Protection Act (DPA) and according to consumer polls, over a third of Britons are already anticipating to exercise their rights in accordance with this legislation.

But what does it all mean and more importantly what does it have to do with fixing cars? It is easy to brush off this kind of change, assuming that it only applies to big companies like chain fast-fits and dealerships that obviously have some sort of ivory tower that churns out policies and small print in a factory like manner. They are used to being sued right? They have all the means to support all this bureaucratic nonsense and the small company that only employs a couple of people won’t have to worry about this kind of EU nonsense, plus Brexit and everything else…

Unfortunately this is not the case, this change has happened and it is coming in the next couple of months. On that day and every day after this new responsibility will be handed over to you regardless of your preparedness. A bit like becoming a parent really, only without the panting and sweating that you get to herald this kind of immediate change. So what exactly is it?

THE ACT
To break it down, The Data Protection Act (DPA) was introduced in 1998 to protect the rights of the individual with regards to their personal data and how it is processed. A lot has changed since then, particularly the quantity of data that is collected and the complexity of locations of where it is stored have changed dramatically.

Most of the legislation from DPA will remain the same, GPDR will enforce certain elements of it and although GDPR is an EU directive it will be incorporated into British law post Brexit.

Louder for the people at the back, whether we are in or out we are keeping this.

Before moving on, it is worth clearly defining what we mean when talking about processing data, especially in the context of General Data Protection Regulation.

At its most basic definition this refers to any operation performed using personal data, it does not matter if this is automated, handwritten or typed into a spreadsheet. This includes and is not restricted to collecting it, organising it, structuring it, storing it, retrieving it, sharing it and a whole lot else. The official definition can be found on the Information Commissioner’s Office website.

In short, it will now be considered a breach of data if information that is protected by this legislation is not securely stored. This is so serious that even if a breach of data has not occurred, poor management of this data will be treated in the same manner as if the breach has occurred. Dumb luck is not rewarded. If an organisation has been targeted for data theft or even if a suspicion that data has been potentially put at risk there is guidance on the ICO website on how to manage and report such an incidence, and the ICO are keen to push the ‘tell us everything and tell us quickly’ message in the same way you would speak to your insurance company and the police if someone had broke into your premises.

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RING LAUNCHES EUROPEAN OFFICES

RING LAUNCHES EUROPEAN OFFICES

Lighting and accessories brand Ring Automotive has invested £200,000 in a Paris office which is now open for business.

The expansion is part of the firm’s product development plans, that has led to some new appointments within its international team.

Carlos Carrido, Stephan Schneider and Sebastien Richir have been appointed as Sales Managers to improve exports to customers in countries including Spain, Portugal as well as Germany, Austria and Switzerland. Richier will join Ring’s International Business Director Gonzalo Vargas-Zuniga Cruz at the EU office in Le Dome, part of the Roissypole complex of buildings at Roissy Charles de Gaulle International Airport, while the other recruits will work across the continent and have access to the HQ as and when required.

“Approximately a quarter of our sales can be attributed to exports giving some indication of the opportunity that extending our presence across Europe represents,” said Cruz. He concluded. “We know that our sales channels and performance across these markets has significantly improved over recent years and this investment will further reinforce our commitment as we build our portfolio of customers.”

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TPS OPENS NEW CENTRES

TPS OPENS NEW CENTRES

TPS Bolton branch

Volkswagen Group Genuine Parts supplier TPS has expanded its network with the addition of a new distribution hub in Bolton and Watford.

The move comes as part of the firm’s growth strategy to reach more customers within these respective regions.

The Bolton branch comprises of a 5,400 sq ft facility, housing eight staff, two vans with four drivers delivering within a 25 minute radius of the centre.

Matthew Sheldon, Bolton TPS Centre Manager, said: “The new Bolton centre has made a huge difference as we can now reach a lot more customers than before and that gives us a great opportunity to grow the business. “He added: “In previously servicing the region from our Oldham site we would experience difficulties getting across the M60 but the new location overcomes that obstacle and enables us to provide a much faster and on demand service.”

Meanwhile, the Watford premises contains a  5,000 sq ft warehouse, consisting of 5,000 product lines of stock and 18 employees headed by its TPS Centre Manager Sean Willis.

Speaking of the new site, Willis said: “We have only been open since January but we have already got off to a really strong start and are currently servicing around a 165 strong customer base.

“We have been able to create a good territory, right in the middle of the area we service with a lot of improvements including increased stock holding capacity and better speed of delivery. It’s been a positive start but the proof in the pudding will be in the eating as we look to grow our customer base and take the business forward.”

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COMPANY DIRECTORS UNDER THREAT

COMPANY DIRECTORS UNDER THREAT

Creditors must be taken care of as well as the business itself

Running a company and holding a directorship involves a number of duties and obligations. The law is very prescriptive about this, and for good reason. In exchange for limited liability and general immunity for company debts, directors must care for the success of the business and also, should insolvency loom, protect the position of creditors.

The authorities take a dim view of those that breach the law. Take the November 2017 case of Kieran Jon Fox, the sole director of Doncaster Auto Parts Limited. He was disqualified from being a company director for three years and six months for trading “to the detriment of HM Revenue and Customs” by failing to pay £94,999 in respect of PAYE, National Insurance and VAT – monies owed at the time of liquidation. HMRC’s analysis of Doncaster’s bank account showed that at least £505,877 was spent from the account between 7 June 2015 and 9 June 2016. Over the same period at least £95,687 was paid to him in respect of loans, wages and dividends and at least £373,537 was paid to other parties. Total liabilities to creditors at liquidation were £358,237.

DIRECTOR’S DUTIES
According to Peter Windatt, an accountant and licensed insolvency practitioner with BRI Business Recovery and
Insolvency, companies must have at least one director who is legally responsible for running the company and making sure its accounts and reports are properly prepared.

Directors must be at least 16 and not disqualified; while most have a director’s title, the law recognises what is termed a shadow director. “An individual in this situation,” says Windatt, “is without title but nevertheless acts as if they are a director. Consequently, the law assigns them the duties and obligations of a formally titled director. Avoiding the term ‘director’ doesn’t remove the duties and liabilities from an individual.”

There are a number of general statutory duties placed on directors by the law which Windatt outlines.

“Firstly,” he says, “directors must act within their powers – that is, comply with the company’s constitution and exercise powers only for the reasons they were given.” Windatt explains that directors must critically act in a way they consider is most likely to promote the success of the company for the benefit of its members: “To do this they must have regard to all relevant matters, which the law specifically says involves ‘considering the likely consequences of any decision in the long term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others, as well as the impact of the company’s operations on the community and the environment; and the desirability of the company maintaining a reputation for high standard business conduct; and the need to act fairly as between members of the company.’”

But there are other obligations to note: Directors must exercise independent judgment, that is, not be swayed by others, and must also exercise reasonable care, skill and diligence. This is key for Windatt – he says directors must be diligent, careful and well informed about the company’s affairs: “If a director has particular knowledge, skill or experience relevant to his function (for instance, they are a qualified accountant and act as a finance director), they will be judged accordingly.”

Another duty to note is the need to avoid conflicts between director’s interests and those of the company. This means not accepting benefits from third parties unless the company authorises acceptance, while declaring any interest in a proposed transaction or arrangement before it is entered into.

A final duty is close to Windatt’s own professional interests. Directors should consider or act in the interests of creditors (particularly if insolvency is a possibility) while maintaining confidentiality of the company’s affairs.

WHEN THINGS GO WRONG – DISQUALIFICATION

Of course, many businesses are well run and outlive their founders. However, when a business fails “the Insolvency Service will,” says Windatt, “examine the failure and if the director and his actions have been found wanting, can seek the disqualification of the director(s).”

He offers a note of advice to directors: “To protect their position and to comply with the law, directors should ensure their companies maintain and preserve proper accounting records and should submit them to the relevant authorities upon insolvency.” He frequently sees directors investigated by the Insolvency Service with a view to taking action against them, and says: “Any director that’s been disqualified will no longer be able to act as a director of a company; take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership; or receive company’s property. For most, this is likely to have a significant impact on their future earnings, especially as they may be disqualified for up to 15 years.”

PENALTIES FOR BREACHING DISQUALIFICATION ORDERS
There will always be some who consider that they can ignore a disqualification order, but they risk severe punishment. In these circumstances, they face imprisonment for up to two years and/or a fine on conviction following indictment; or imprisonment for up to six months and/or a fine on summary conviction. And the threat isn’t idle – there have been convictions.

Interestingly, but not unsurprisingly, Windatt’s seen some directors who are disqualified, either under the CDDA or by virtue of being made bankrupt, have their spouse/partner or other close friend/relative “front” a business while they carry on running it from “behind the scenes”: “This frequent scenario unravels when the business fails. At this point the stooge quickly reveals what they were and who the real controller was.”

To conclude, companies can and do fail for any one of a number of reasons, most of which are unfortunate but not deliberate. But where a director has not acted in good faith or in accordance with their duties, they can expect their activities punished and their ability to earn a living curtailed.

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MESSE FRANKFURT ACQUIRES FOREST EXHIBITIONS

MESSE FRANKFURT ACQUIRES FOREST EXHIBITIONS

Event organiser Messe Frankfurt has acquired Forest Exhibitions to create Messe Frankfurt UK. Terms of the deal have not been disclosed.

Sherwood was the licence holder for Automechanika Birmingham, while Messe Frankfurt is the parent company.

Simon Albert, Event Director of Automechanika Birmingham will take the role of Managing Director of the new UK subsidiary replacing Rob Sherwood.

A note from Olivia Brockwell, Operations Executive at Messe Frankfurt UK, to exhibitors at the show read: “There will be no operational, commercial or legal impact on your relationship with Forest Exhibitions”.

“The event team remain unchanged, and we are full steam ahead with this year’s event”.

The show organiser will remain in the same

 

 

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FILLING GAPS IN THE MARKET

FILLING GAPS IN THE MARKET

Sean (L) and son Daniel (R)

Sean Brown shows CAT around Brown & Geeson in Wickford, Essex

Today we are Essex-bound visiting Brown & Geeson – a parts supplier and manufacturer that’s had a strong presence in the motorsport sector since its inception over 50 years ago.

BACKSTORY
In fact, the company first started out as an accessory shop in Chadwell Heath, set up by father and son duo Ray Brown and Arthur Geeson, which saw the integration of B-G aftermarket accessories in the form of fuel pumps, seat covers and wheel trims among various other components. However, the turning point in business came when Ray discovered the importance of self-branding, as his son Sean explained: “At the time, my father realised that by buying something in, putting his name on it and in his own packaging, he could sell his products worldwide and that’s how the business started to grow”.

Following expansion plans, the business partners relocated to larger sites in Plaistow East London and Dagenham, Essex respectively, where bespoke production facilities were introduced for serving VMs, importers and parts manufacturers across the country and abroad. This eventually led to another desirable location in Wickford in the mid 90’s, however, there were plenty of major changes ahead: “The UK manufacturing industry back then was quite tough, so myself and my father Ray made a decision to sell all contracts, machinery, shutdown the company and start what was ‘Brown & Geeson Distribution’.” said Sean. “The decision was taken to come out of manufacturing and concentrate on buying and selling from where Brown & Geeson originally started” adding that the firm eventually reclaimed its original name and returned to manufacturing, that’s now outsourced overseas.

BRANDING
As it stands, Sean and son Daniel head-up the operation of whom have extensive experience in motosport both on and off track. They greeted and took us through to an office space displaying styling products such as the infamous Momo steering wheel and numerous accessories behind shiny glass cabinets, along with mannequins dressed head to toe in Team GB race wear.

Display bits and pieces aside, Sean was keen to get down to business and discuss the B-G Racing brand that is now in its sixth year. Speaking of how it came about, he said: “What we needed to do with Brown & Geeson was go back to the old days where we sold boxes with BG logos on it. I believe there are products not only for pit equipment but also for setup equipment.” He continued: “On travels around the world, I have visited paddocks in Europe and noticed gaps in the market for premium products. I thought I could create something similar and bring it to the masses, not only to ‘educate’ but give the top teams a quality product for an affordable price.” He adds that the BG platform has been well received so far as the organisation’s distribution base now stretches globally.

Barcoding system has proved effective

Daniel agrees and expands on his father’s sentiment: “The B-G Racing brand is growing steadily everyday. We target distributors in different countries so instead of selling directly to the public, we target trade and retail shops in France, Germany and many more countries. We try and offer them a whole catalogue solution so they can source all their necessary parts from one place to simplify the purchasing process”.

Sean notes that the team have recently released their Seventh Edition catalogue packed with vehicle, setup and pit equipment for motorsport and aftermarket companies. Some of the popular sells he notes include: lift jacks, work mats and hub stands, plus camber/ caster gauges and levelling trays for technicians whether they’re working in a garage or pit lane. In addition, the brand is a supplier of car components from Australian firm Aeroflow Performance and Mittler Bros Machine & Tool.

After a business insight, Daniel and Sean provided us with a tour of the facility. During our tour, the shop floor seemed well organised with Momo and B-G Racing wares stacked along the aisles in an orderly fashion as they await distribution. The top floor comprised of more styling accessories and an in-house studio where new products are photographed before being uploaded to the firm’s website. To speed up productivity, Daniel told CAT that a new barcoding system has recently been implemented to get the product logged, onto the shelves and out the door to reduce stock discrepancies with customer orders.
Of course, with any queries that may arise, the sales and admin department are on-hand and who were very busy on our arrival dealing with customer calls and queries both nationally and internationally.

Although the duo have acquired some new OEM and workshop projects, everything is being kept top secret until completion later this year.

But for now, Daniel and Sean’s main objective is spreading the BG footprint while continuing to produce products to help bridge gaps in the market. We look forward to catching up with the team very soon.

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NEW MACHINERY FORMS PART OF £1m KLARIUS PLANT UPGRADE

NEW MACHINERY FORMS PART OF £1m KLARIUS PLANT UPGRADE

Bill Cash switches Vector Pipe line on for service

Emissions parts manufacturer Klarius Products has invested in a second Vector Pipe Line machine at its facility in Cheadle.

The machine is part of a £1m investment in the plant. Standing at least as tall as a double decker bus, it turns aluminised steel strip into corrosion resistant pipe used in the manufacture of exhaust systems.

Local MP Sir Bill Cash came to cut the ribbon and press the button to start it up. Paul Hannah, Business Development Director said: “It was a great opportunity to thank everyone in the Klarius team, all three hundred of them for their hard work and underline why it is so important to our business. Also, by investing in our own machine tool manufacture and refurbishment business we are not only improving Klarius production machinery, but also developing skills and growth within the UK economy”.

Other recent investments for the firm include a new van fleet and a new manufacturing line producing automotive service aerosols and fluids.

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MAKING FAIR DISMISSALS

MAKING FAIR DISMISSALS

Deciding who makes the cut and telling those who haven’t is never easy. Here are a few tips to smooth the process

No employer likes to make employees redundant. Unfortunately, as the recent decision for 100 planned redundancies at the AA illustrates, and the announced Andrew Page branch closures might mean, sometimes difficult decisions do need to be made.

For the process to work properly, it is important that redundancy dismissals are handled sensitively and in accordance with the law. Any employer that fails to comply with its legal obligations during a redundancy situation could face complaints from employees and claims for compensation for unfair dismissal as a result.

WHAT IS A REDUNDANCY SITUATION?
In an employment law context, redundancy has a very specific meaning. To summarise, the statutory definition of redundancy identifies three sets of circumstances that amount to redundancy situations – a business closure; workplace closure; or reduced requirements of the business for employees to do work of a particular kind.

There is no mandatory procedure laid down by legislation in England and Wales for fairly dismissing an employee for redundancy reasons. Instead, employers must follow a fair procedure involving individual consultation. Dismissal decisions must be fair and reasonable. Case law has determined various principles of fairness that an employer should follow in order to reduce the risk of employees pursuing claims for unfair dismissal.

Generally, these principles require an employer to give employees early warning of the risk of dismissal; consult with employees (and the union if required); identify an appropriate “at risk” pool for redundancy; draw up and apply fair selection criteria; and give consideration to alternative employment.

CONSULTATIONS

First, an employer looking to make a number of employees redundant must check whether the obligation to engage in collective consultation exists. Where there is a proposal to make 20 or more employees at one site redundant within a 90-day period, the employer must engage in collective consultation with a trade union. If no trade union is recognised for that particular employer, then an employee representative will need to be elected, with whom the employer will need to consult. The employer will also need to notify the secretary of state of the number of planned redundancies.

Employers should seek specific advice in circumstances where multiple redundancies are planned as there are a number of obligations.

Even where a collective redundancy situation does not arise, consulting with the employee(s) at risk of redundancy is absolutely vital and will be central to the fairness (or otherwise) of the decision to dismiss. Consultation should be genuine and take place at a time when the employer can properly consider the employees views and suggestions – that is, before the final decision is made.

THE “AT RISK” POOL
Before selecting an employee or employees for redundancy, an employer must consider what the appropriate pool of employees for redundancy selection should be. Otherwise the dismissal is likely to be unfair.

There are no fixed rules about how the pool should be defined and, unless there is a collectively agreed or customary selection pool, an employer has a wide measure of flexibility here.

The question of how the pool should be defined is primarily a matter for the employer to determine and, provided an employer genuinely applies its mind to the choice of a pool, it will be difficult for an employee (or a tribunal) to challenge the choice.

Factors that are likely to be relevant to identifying a pool are the type of work is ceasing or diminishing; the extent to which employees are doing similar work (possibly even those at other locations); and the extent to which employees’ jobs are interchangeable within the workforce.

SELECTION CRITERIA AND SCORING
Once an employer has identified the employees in the at risk pool, it will need to apply selection criteria to determine those at risk of redundancy. To do this, employers will need to develop appropriate selection criteria. The criteria, which of course must be objective and fair, might want to look at things like disciplinary record, length of service and performance. Criteria which relate to protected characteristics such as age, disability, religion or sex must be ignored.

The employer will need to mark each of the potentially redundant employees according to the finalised selection criteria.

Different weighting can be given to different criteria. It can also be useful to ask different managers to independently score employees in the at risk pool in order to ensure objectivity.

ALTERNATIVES TO REDUNDANCY
In many cases, consultation between employer and an employee who is at risk of redundancy will be focused on finding an alternative to dismissal on redundancy grounds. Employers should be prepared to discuss the steps that it has taken, or has considered taking, to reduce the risk of (or number of) redundancies. This might include things like a recruitment freeze and terminating the engagements of agency workers before embarking on the redundancy process.

Equally, employers should provide details of any vacancies to employees who are at risk of redundancy in order to minimise the number of dismissals that might need to be made.

STATUTORY PAY
Lastly, when making redundancies, employers should bear in mind that employees are entitled to an SRP payment where they are dismissed by reason of redundancy and have at least two years continuous employment at the date of the dismissal. The calculation for this can found at: gov.uk/calculate-your-redundancy-pay

Managing a redundancy process to ensure fairness can be difficult. It is crucial that an employer carefully plans the process at its beginning and critically before consultation with employees begins. Getting it wrong can have a big impact – in addition to potentially facing unfair dismissal claims, a poorly planned redundancy process may end up alienating the workforce at a time when the employer requires everyone to be particularly focused on the job at hand and morale is low.

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