Release date: October 2009

If an employer has to make an employee redundant, it is a dismissal. If you get the process right, redundancy is a fair reason to dismiss an employee and the employee will not have a successful claim for unfair dismissal. But if you get it wrong, an employee may be successful at the Employment Tribunal.

A fair procedure must be followed and fairness depends on the circumstances of the business and whether the employer acted reasonably. A redundancy dismissal is likely to be considered unfair on procedural grounds if, for example:

• An employer fails to consider the correct pools for selection
• The selection was not the result of a fair application of the criteria
• There is a failure to consult with the employees at risk of redundancy
• There is a failure on the part of the employer to consider suitable alternative employment

The selection of the pool for redundancy is important. If the redundancy is for a unique role then the employee is selected on that basis. If not, a pool should be chosen on the basis of objective criteria. This may look like a good opportunity to get rid of someone who has been unproductive, but a fair procedure is likely to identify any decision to single out someone as an obvious inconsistency. It is vital that employers consult individually with employees who are at risk of redundancy and continue to communicate with individuals throughout the whole process.

As regards alternative employment, a Tribunal will consider whether the alternative employment offered, if the employee has refused it, is suitable according to an objective test.

To discuss any legal issues relating to redundancy, please contact Chris Wiper on 01325 466461 or Chris Wiper

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