Redundancy

You may be faced with a situation where your role is at risk of redundancy. This will obviously be a worrying time for you.

Employers must act carefully when dealing with redundancies in order to avoid potential claims of unfair dismissal. Therefore, in redundancy cases employers will generally need to:

  • Establish a genuine case for redundancy (for example, because of a loss of work) 
  • Consider alternatives to redundancy such as reducing overtime or ceasing to use agency staff
  • Give careful consideration to the pool of employees from which redundancies are to be made
  • Use a fair selection procedure (for example, not involving discriminatory criteria)
  • (In large scale redundancies) Carry out collective consultation with a trade union or other employee representatives
  • Carry out individual consultation with employees at risk or redundancy
  • For at risk staff, consider alternatives to redundancy such as redeployment

If you need help and advice to understand the implications of the process, our employment law solicitors will be able to advise you on the situation and assess the merits and value of any employment claims that may arise, for example, unfair dismissal.

Claims for unfair dismissal often focus on the procedure followed and whether, at the end of that procedure, a reasonable conclusion has been reached by your employer. Often we are able to identify concerns you may be able to raise in order to challenge the employer’s decisions. For example, is your selection for redundancy fair and objective? It may be that there are allegations of discrimination if you feel the redundancy is manufactured in some way. If so, we can advise on whether an Employment Tribunal is likely to find that this is the case and, if so, how best to approach the situation.

It is also important that you understand the implications of seeking voluntary redundancy. This may be linked to an enhanced redundancy payment (which in turn is often conditional upon you signing a Settlement Agreement). We regularly advise clients on Settlement Agreements.