How to tell an employee they are being declared redundant

What you should avoid when laying off staff is keeping them in the dark about the reasons as to why they are being laid off.

Photo credit: Shutterstock

Let’s face it—being laid off or having your position declared redundant doesn’t happen in a vacuum. More often than not, there are telltale signs that the organisation is struggling. Additionally, the grapevine within the company often confirms that all is not well.

Be that as it may, there comes a time when these ‘rumours’ are confirmed. If you asked anyone, no one would want to be in such a position, either on the receiving end or the relaying end.

However, some things have to be done. Truth be told, informing an employee that they are being laid off is never easy, especially after hard economic times.

But is it easier when it’s due to poor performance or disciplinary issues? I ask.

Crispin Ochieng, Human Resources (HR) manager at Great Rift Valley Lodge, shares that soft words like, ‘I sympathise with you, this is the position that the organisation had to take because there are no permanent relationships in employment go a long way.’

However, he says the soft words are only appropriate for employees laid off due to economic hardships. The conversation changes when it is a result of disciplinary issues or poor performance. “Unlike redundancy, which happens because of unforeseen circumstances, these other ones are self-inflicted,” he adds.

Key considerations

Nonetheless, Mr Ochieng shares that the key considerations when initiating a layoff process are logistics and compliance.

“In relation to the Employment Act 2007, an employer should give a one-month notice to the Ministry of Labour and severance pay. This can be tailored to meet the company policy.

For logistics, it is all about the physical environment. Who is supposed to be in the meeting? and appropriate time to deliver the news,” he says.

When delivering the news, it is important to ensure it is a quiet room and a private space. “My safety should also be important to consider because, at times, the employee can react aggressively.

“I would recommend, that the employee has direct access to the door whereby they can storm out of when they are emotional.”

While there’s no written rule on how to deliver such news, which often carries a heebie-jeebie connotation, Mr Ochieng says continuous training makes it less daunting.

Additionally, it is prudent to be compassionate and offer support, maybe introduce the employee to your contacts or write a good reference for them.

“It is of utmost importance to be direct, honest and quick. Maybe you can begin with, ‘I have some bad news to deliver to you.’ The reason why you need to be straightforward is because it prepares the employee emotionally.”

However, Mr Ochieng says what you should avoid when laying off staff is keeping them in the dark about the reasons as to why they are being laid off.

“Secondly, do not violate the legal and ethical framework, be insensitive, and be open and honest throughout the process.”

Laying off remote workers

Milka Murigi, managing consultant at Verde Edge Consulting Limited, says that it is prudent to have an in-person meeting with employees working remotely.

However, Ms Murigi cautions that for international organisations with remote workers, a virtual meeting is in order. “It is good to record and have everyone’s video on because the non-verbal communication plays a part,” she emphasises.

While the in-office have the advantage of grapevine to know the extent of the effect on their job positions, Ms Murigi shares those working remotely can be indirectly prepared through emails and virtual meetings.

“Even before the redundancy, you will find that for example, salaries are being delayed, you are paid half the amount, some positions are being merged, there are no more recruitments...there are those signs, but employees tend to hang on till the last day.”

Remaining employees

Since layoffs and redundancies create an unstable environment, Ms Murigi says it is important to stabilise the ship by reassuring the remaining employees, that the company is not closing down.

“If the company has 300 staff, for example, and 100 are being laid off, it is important to meet the remaining staff and explain the way forward.

“Also, do the memos in every department stating what roles will be merged, how much money will be reduced in allowances, renewal of contracts and per how many years. Communicate all the relevant information to the staff, reassuring them,” she explains.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.