Redundancy Lawyers

Redundancy happens when an employer requires to reduce the number of people employed by the business.  This can be because the business is closing down, or the particular workplace is closing or moving to another location.  Alternatively, it could be that an employer merely requires a reduction in the number of staff doing a certain type of role, either because it has less need for that role or because it is restructuring the business in some other way.   The result is that employees will be dismissed because of redundancy.

Employees who are being made redundant have certain rights under the law and employers are required to ensure that the redundancy process is fair.

Employees who are selected for redundancy are entitled to be:

• consulted about the redundancy proposals and the method of selection offered any alternative employment available  with the employer
• provided with a fair process in which they can have their say, including a right of appeal
• given a period of notice of termination of their employment
• paid a statutory redundancy payment (or any other redundancy payments the employer may offer).

Where an employer is looking to make redundancy selections, they must take certain steps to ensure that the process is fair:

• contact all employees affected to inform them that redundancies are going to be made
• set out a consultation process involving at least two individual meetings with employees (where they have a right to be accompanied) and an appeal process
• establish fair selection criteria, ideally with a mix of objective criteria (eg disciplinary records) and subjective criteria (eg contribution to the business), and apply them consistently and in a transparent way.
• consider whether there are any alternative roles within the business which could be offered, and consult with the employees selected for redundancy about this
• listen to comments made by employees during the consultation process and respond to them
• inform employees about final decisions and explain the reasons for them

Where an employee redundancy is unfair, they may be able to make an employment tribunal claim for unfair dismissal.

There are special consultation rules which apply when there are 20 or more (or 100 or more) proposed redundancies within a 90 day period.  If the workforce is unionised, the unions must be provided with certain information and consulted with.  If the workforce is not unionised, the employer must help the employees to elect representatives and to consult with that elected body.  The employer must also notify the Secretary of State about the proposed redundancies.  There certain time limits for the consultation period.  Failure to follow these rules could result in the employer being liable for further compensation to the employees.