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Case Study

Review of redundancy procedures within a plc consultancy organisation - UK wide


The Situation

A new 'Centre' within the plc was established by bringing together the 'best' consultants from around the company. Without any consultation, an unrealistic income target was set by managers for the new 'Centre'. Within three months managers decided that progress towards the target was too slow, and decided to make two consultants redundant. The approach to redundancy broke most of the required procedures, the process was seen to be unfair, and the two consultants decided to take legal action. OrganisationHealth was instructed to review the procedures and the cases for redundancy and to advise on an appropriate course of action by the plc.

The Action

OrganisationHealth advised the plc to enter into Compromise Agreements with the two consultants on the basis that there was a case to answer and that lawyers would take the cases to Tribunal. In addition, it was advised that the processes adopted in cases where the company wished to change the contractual arrangements of employees should be revised, with a view to ensuring that all consultants remained committed to the organisation even through there may be economic challenges to be confronted.

The Outcome

There was a reduction in the anger towards the organisation by those consultants remaining in the company and the development of a culture within the 'Centre' which recognised the contribution that the 'best' consultants were making to the company. A Tribunal was avoided together with adverse media publicity, but the redundant consultants continue to believe they were badly treated.

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