DURING IRELAND'S heyday, when the economy hovered near full employment, it looked as though the word "redundancy" itself might be heading in the direction of becoming redundant.

But unfortunately the "r" word has filtered its way back into the daily headlines and nightly news. Job cuts have been coming thick and fast in recent months, and the pain is not over. Some companies are believed to be holding out until after Christmas to break the bad news to their staff.

While employers may have more urgent things on their mind - like keeping their business afloat - they must tread carefully when making staff redundant. Even if companies are under intense pressure to cut costs, this does not give them licence to slash their headcount without a thought for employee rights.

If employers are not careful, they will find themselves being hauled before the Employment Appeals Tribunal by a disgruntled ex-employee.

If the tribunal finds in favour of the employee, it can order the reinstatement of that person or award compensation of up to two years' gross salary, which will, of course, compound the employer's problems.

The first issue employers must consider is whether they are implementing a "collective redundancy", which generally means a large-scale redundancy.

There must be at least 20 people employed, with at least five being made redundant within a 30-day period, for it to constitute a collective redundancy.

If this is the case, the employer is obliged to inform the Minister for Enterprise, Trade and Employment and engage in a consultative process with the workforce at least 30 days before anyone is made redundant. Fines will apply for non-compliance with these obligations.

Even if the workforce is being reduced by just one person, employers can still run into trouble. If, for example, an aggrieved former employee takes a case of unfair dismissal to the Employment Appeals Tribunal, the tribunal will automatically assume the employee is in the right - it is up to the employer to prove otherwise. They must be able to show that the criteria used to select the individual for redundancy were fair, reasonable and objective.

Therefore, to protect themselves against any case that may be brought against them, employers should take minutes at all meetings relating to redundancies so there is a paper trail to support their side of the story.

Apart from applying fair and reasonable criteria, it is essential that correct procedures are followed. Otherwise, employers leave themselves exposed to a compensation claim.

The employer should consult with all employees who might conceivably be made redundant, let them know their name is in the frame and provide them with details of the selection criteria that will be used to make the decision.

The worst thing to do is to spring the news on someone that they are being made redundant without warning or consultation.

One of the difficulties being experienced by companies is that many senior managers have not implemented redundancies before and may not be aware of the steps that must be followed.

If the company does not have a dedicated human resources (HR) professional to guide managers through the process, it should look for external help, for example by consulting a lawyer or employers' body Ibec, which offers HR services to its members.

Employers should also try to see beyond the immediate challenges and keep in mind the long-term benefits of handling redundancies in a respectful, supportive and professional way. This issue is particularly relevant in an Irish context - the business world, for example, is so small here that word will spread quickly if redundancies are announced in an insensitive way.

One way of minimising damage to a company's reputation - and the morale of remaining staff - is by providing career transition support, also known as outplacement, to employees being let go.

The first step in this process is to help people to cope with the emotional impact of job loss. Then the outplacement provider will reinforce the message that the individual is going to successfully relaunch their career. The third step is to help them identify their skills and market themselves to potential employers.

Providing an outplacement service sends out a strong message from the company that letting staff go has been a tough decision. While it may add to the cost of redundancies, in the medium and long term it pays dividends.