If your organisation proposes to dismiss their redundant 20 employees/workers or more, they must notify the Secretary of State for Business, Energy & Industrial Strategy of the dismissal. The Redundancy Payments Service (RPS) works on behalf of the Secretary of State; therefore, RPS will look after all the matters of employee redundancy on behalf of the Secretary of State.
After collecting the data and information from various government organisations, it will then distribute to concerned departments run by the government that offers job brokering services or training services.
This advance redundancy notification is done through the HR1 Form. If your organisation fails to notify them about the workers’ redundancy to the Secretary of State, that too without explanation and justification will result in either a fine to the company or the claim will go to the employment tribunal. Both results will not be in your favour. Therefore, it is better to inform the competent authorities timely.
However, when dismissing fewer than twenty employees at your single workplace, there is no need to notify RPS. Although, other legal requirements are required to be done during the process of redundancy.
Also, if your company has multiple workplaces, you will count the dismissal separately from each site. This means if you dismiss twenty-three employees from one site and twelve employees from the other, you will have to notify the authorities from both of your workplaces.
What is the HR1 form?
The HR1 form is a form of advance notification to the secretary of state for redundancies of twenty or more employees. It intimates RPS – working on behalf of the Secretary of State- that you will dismiss twenty or more employees for some reason. If you don’t inform RPS regarding this redundancy, you will have to face serious consensus.
You can either be charged a heavy fine, or you will end up going to the employment tribunal. Therefore, you must state your redundancy to the competent authority before getting into any lawsuit.
However, in the case of terminating fewer than twenty employees at a single workplace, there is no need to notify RPS. However, other legal requirements are required to be done during the process of redundancy. This means there is no need for any form of HR1.
In 2015, City Link Enterprises faced heavy fines for criminal offences when almost 3000 employees lost their jobs due to the bankruptcy of their company. Similarly, in the same year, charges were brought against the then Chief Executive Officer of Sports Direct when the business collapsed, and CEO Dave Forsey failed to notify RPS when he terminated his 200 warehouse staff.
How to complete the HR1 Form?
Completing the HR1 form is relatively easy as it looks. You just have to fill in all the sections and required information from your end; missing or leaving any blank section will result in the rejection of the form.
If you look at the form carefully, it indicates the required information, and if you clearly understand the instructions, you will fill out this form. Do look at the below instructions for the completion of the HR1 Form.
Typically, the form includes the name and address of the employer and contact details like telephone or email. Other requirements include the workplace location where redundancies are taking place. This detail also comprises the timing of the dismissals (the proposed date of the first and last dismissal). It includes the reasons for not submitting the legal requirements to the RPS.
In this form, you must also select the type of designations for redundancy selection.
This occupational group includes:
- Clerical
- Managerial
- Manual
- Trainees
- Technicals’
- Professionals
After selecting the type of designation, you must give the total number of possible redundant within a specific job occupational group. To better understand, if you have twenty-two clerical employees, only four of them are at risk. I hope you understand this above-quoted example.
After giving the details of types of occupational jobs, there comes the SIC code. You are required to provide the code of SIC; it stands for Standard Industrial Classification of Economic Activities. The SIC gives every entitled company particular code(s) for the nature of business for Companies House. In the case of HR1, you must provide them with the exact nature of the business.
Confirmation of Business Closure and Employee Dismissal Options in Form
You will then be asked in the form to confirm whether or not you are closing your business or company intention. There will be options for the closure of the organisation, for example, due to insolvency or other reason. If you are not shutting down your business, tick the no option. Moreover, you will be given several other options for dismissing many employees, such as:
- Lower demand for the product
- Surplus employee(s) against whom no vacancy is authorised
- Insolvency
- Others
As of now, if you have consulted with the representatives of the redundant employees or with their union, you will have to provide their name(s), a description of the employees they represent, and their organisation.
If you do not know trade unions for redundant employees, then you must inform the authority against their row(s) in the form. Moreover, before filling out the form, you must ensure that you have individually given the notice of termination to the employee.
At last, there is a declaration at the end of the hr1 certificate that the information in the above form is complete and accurate, as you know.
Once you complete all the form and submit it to the given email, you will be issued a receipt for your changes in the online form.
Your organisation must inform the Redundancy Payments Service, commonly known as RPS, at least 30 – 45 days before the duration of the first dismissal date of the employee and then issue a notice of dismissal to the particular employee(s). You should always remember that the date RPS received your email is the actual notification date.
Checklist of HR1 Form:
After completing all the form HR1, employers must submit their forms to [email protected]
However, there should be some errors or discrepancies related to information. Therefore, it is necessary to check again. We have mentioned below some checklists that will ensure there aren’t any mistakes in the form.
There is an online availability of this form. You must download an MS Word version of the form and return it to [email protected]. Check your answers in the provided space and also recheck your answers.
- Tick the relevant boxes where appropriate.
- Provide your valid email address.
- Check the postal address of your site(s) where redundancies are possible.
- Provide a complete copy of this form to the employees’ representatives and consultations.
- Ensure you carefully see the “Save and Print” option to have the softcopy of HR1.
- If there are any amendments in the form, you must inform NISRA as soon as possible.
Collective Consultation
Once you have decided to start the redundancy process of dismissing employees, before submitting or filling the HR1, you should consult with the representatives and any trade Union of the employees.
The details of the employees, along with their reasons for dismissal, must be shared timely with the representatives and trade unions of the workers for their consideration and proper reply. However, if there are no unions or representatives of some employees, you should directly share this advance notice with them, giving them proper time for their new job or making up their minds.
After consultation and other considerations, you should now give termination letters to these affected employees. These termination notices should have an agreed date for leaving your company, which must be after the expiration of 30 to 45 days notice period. Last but not least; the employer must also include employees’ notice periods as mentioned within their employment contract.
Hence, you should give the notice period to the affected employees, which is
- For the one-week notice for one-month continuous service, this is almost two years.
- And for one week’s notice for every year of continuous employment for two years or more, this makes up to 12 weeks.
Once you have completed the consultation, you can then issue the redundancy/termination notices to the affected employees. In case you do not submit within 30 – 40 days of the notice period, then you should provide the reasons for failure to RPS, if any. Apropos, if you or other officers cannot provide and notify RPS, you can be charged heavily.
Redundancy consultation
The minimum time when you notify the authorities regarding redundancy is the same as for the collective consultation. Before giving notices to affected employees and dismissing their contract of employment in respect of any sort of termination within 90 days is mentioned below:
- If 20 to 99 redundancies of the employees occur at one workplace, then you must give advance notification at least 30 days before the date of first dismissal.
- However, If 100 or more redundancies of the employees occur at one workplace, site, and establishment, then you must notify the RPS at least 90 days before the date of the first dismissal.
Tip – The Redundancy Payments Service (RPS) will consider the date of notification on which they receive your completed form of hr1.
Once the consultation is completed from both parties, the employer should provide representatives of employees, union trades:
Employees written details of the following
- What are the reasons for terminating the employees?
- Occupational groups of employees and the tentative number of employees at risk of redundancy.
- Give the details of the selection procedures and related data of employees.
- What procedures will the company carry out for employees at risk of redundancy?
- What calculation can be carried out for redundancy payments, as most employees have experience of two years and are entitled to a redundancy payment?
In any consultation process, the requirement for the process is to be ‘meaningful’. The employer should share all necessary data to support the progress of the consultation between the organisation and the employees’ representatives.
However, from the legal point of view, the law needs to state how long consultation should last. The consultation length will vary depending on the business’s nature and circumstances. Hence, there is also no set time for the end of the consultation, and it can process the prescribed limit.
Why Filing the HR1 Form for Redundancy Notification is Crucial?
If you are an employer looking to make redundancies, it is essential to properly handle the matter and provide legal notice to the authorities and the employees. This is where the HR1 form comes into play.
A company proposing to dismiss 20 or more employees must file the HR1 form with the Redundancy Payments Service (RPS) as it is mandatory.
Let’s take a closer look at the HR1 form and understand why filing it is crucial.
Avoid Legal Penalties
The HR1 form is a legal requirement, as mentioned earlier. As an employer, you have no option but to comply with the statutory obligation of notifying the government of your intention to make redundancies.
Furthermore, failure to complete the HR1 form adequately could result in severe financial penalties or legal action being taken. Therefore, you must ensure you correctly complete the HR1 form to avoid potential legal issues.
It Helps Understand the Legal Requirements
Providing your employees with a copy of the HR1 form is legally required. It is your responsibility as an employer to provide your employees with relevant information about their redundancy situation, which includes details of the HR1 form. This information will help employees understand the legal requirements and process of making redundancies, making the transition smoother and less stressful.
Help in Gathering Relevant Data
The HR1 form helps the Redundancy Payments Service (RPS) facilitate redundancy payments. By filing the HR1 form, you ensure that employees know their redundancy rights and have access to the necessary information required for redundancy payments.
The RPS uses the HR1 form to gather relevant data and develop an efficient system to handle redundancy payments efficiently.
Quality Assurance
The HR1 form also ensures that you follow the correct procedure for redundancy. The design of the HR1 form helps you follow the right procedure when making redundancies, ensuring that you don’t fall foul of any employment laws or procedures.
By accurately completing the HR1 form, you ensure that you handle all notifications correctly and carry out the redundancy process compliantly.
Frequently Asked Questions (FAQs)
How much is redundancy pay?
- As an employer, you must give the employee according to the following SOPs:
1.5 weeks’ pay for every year you worked at age 41. - One week’s salary for a full year you worked when you were between the ages of 22 and 40.
- Half a week’s compensation for every full year you provided the services when you were around 17 and 21.
What’s the notice period for redundancy?
As per the law of redundancy provided by RPS, you’re entitled to a minimum notice period of 2 weeks of the notice period if you’ve been giving your services for over 12 years.
What is a redundancy warning?
If an employer gives a notice period by saying you are at risk of redundancy. The employer has a lot of freedom in the UK to choose the right person for the right job. If you are given the redundancy warnings, then contact your nearest Citizens Advice for your convenience.
How long does the redundancy process take to deal with?
However, from the legal point of view, the law needs to state how long consultation should last. The consultation length will vary depending on the business’s nature and circumstances. Hence, there is also no set time for the end of the consultation, and it can process the prescribed limit.
Conclusion
Filing the HR1 form for redundancy notification is a crucial legal requirement that employers must take seriously to ensure a smooth and legal redundancy process. The HR1 form is designed to facilitate this process effectively.
Taking the necessary steps to ensure you correctly complete the HR1 form to avoid any potential legal cases or financial penalties is essential. Ultimately, the HR1 form is meant to assist employers and employees in redundancy, providing a transparent and lawful procedure.
