Redundancy

first_img Comments are closed. Related posts:No related photos. In carrying out a redundancy, every employer will be keen to act assensitively as possible, and, above all, to avoid an unfair dismissal. With areduction of the qualifying period for unfair dismissal to one year and therecent increase to £50,000 for the limit on the compensatory award, this hasbecome a key strategic issue. Although the legal position is relatively complex, there are four stepsemployers can take towards ensuring the dismissal is fair. 1. Genuine redundancyThe position here has been simplified by the recent House of Lords’ decisionin the Murray case. For a genuine redundancy to take place, tribunals needascertain two facts. First, whether a particular state of economic affairsexists – for example, whether the employer’s requirement for employees to carryout work of a particular kind has diminished – and, if so, whether thedismissal is attributable to that state. And, second, whether there has beenfair selection.2. Fair selectionThe employer will need to show that the individual chosen for redundancy hasbeen fairly selected by objective criteria. The most popular selection processis a points system, taking into account a number of objective issues. Employeesshould be aware, though, that employees may ask the tribunal for disclosure ofthe point scores. Before starting on selection, employers should also becareful to identify the “pool” of staff from which to select.3. Alternative employmentEvidence is required of the employer having considered alternative vacancieswithin the organisation for those selected. This may mean canvassing associatedcompanies. If in doubt, always put lower status and lower paid jobs to theindividual, as it is otherwise open to the employee to state that they wouldhave considered a lower status job had it been offered. 4. ConsultationThe employer should be careful to consult with the selected candidate beforethe decision to implement redundancy is made. It is highly recommended that aminimum of two meetings are scheduled with each employee, at least a weekapart, so that an explanation of the situation and outline of the terms can begiven, with a subsequent opportunity for the employee to give their views. Theemployee should also be encouraged to debate the matter with the employer inthe interim. It is wise not to make a formal decision to implement theredundancy until the day after the second consultation. Clearly this requiresforward planning. In addition, unionised employers should bear in mind that there may be aduty to consult collectively as well as individually. For large-scaleredundancies, there are minimum periods for consultation and statutory dutiesto consult trade union or elected employee representatives. When 20 or moreindividuals at the same establishment are to be made redundant over a period of90 days, consultation should begin in good time, which generally means at least30 days in advance of the first dismissal. Where 100 or more redundancies areintended within the same period, consultation should begin at least 90 days inadvance of the first dismissal. Warning to the DTI must also be given in thesecircumstances. Previous Article Next Article RedundancyOn 8 Feb 2000 in Personnel Todaylast_img read more