Redundancy occurs when an employer’s need for employees to undertake work of a particular kind or at a particular location has ceased or diminished, or is expected to cease or diminish. The employer should be able to demonstrate that the business need for the redundancies is genuine. He will also be expected to consider ways of avoiding compulsory redundancies for example by seeking volunteers, investigating job sharing or re-training etc. Employers must also consult with the affected employees, and there are specific statutory requirements which must be observed where 20 or more dismissals are proposed within 90 days at one establishment. Where there is selection from a pool of potentially redundant employees, the employer must consider carefully the appropriate pool of selection and identify appropriate selection criteria. Don’t forget that employees dismissed as redundant are entitled to full notice (or pay in lieu) as well as their statutory redundancy payment.
Contact:
Sandy Meiklejohn – Partner and Accredited Employment Law Specialist
Simon Allison – Associate