If an employer decides they may need to make some of their employees redundant, they need to carefully follow set redundancy procedures. Making an employee redundant isn’t the same thing as dismissing them for poor performance or a disciplinary matter, and can only happen when an employee’s role within a company ceases to exist.
It is the responsibility of the employer to ensure their employees are treated fairly, which ranges from exploring possible alternative employment to ensuring they receive the full redundancy package they are entitled to.
Before starting the redundancy process, an employer has to be completely sure there are no alternatives to solve the issue causing the potential redundancy, including changes to their employee’s terms and conditions that, for example, reduce working hours or pay.
The redundancy procedure is a legal requirement for all businesses, and employers need to follow it carefully. This includes:
Even if a redundancy situation is genuine, failure to follow the correct procedure can result in a finding of unfair dismissal at an Employment Tribunal. While the right to claim unfair dismissal only arises after two complete years of service, selection for a discriminatory reason can also result in a claim from the beginning of the employment relationship.
There are some situations where an employer may wish to offer a Settlement Agreement– a voluntary, legally binding contract that can be used to end an employment relationship on agreed terms between the employer and the employee. A much quicker procedure than the formal redundancy route, Settlement Agreements also ensure that if an employee is dismissed, they will be unable to make an employment tribunal claim about any type of claim which is listed in the agreement, such as unfair dismissal.
If an employee is on maternity, adoption, paternity, or shared parental and is part of the redundancy pool, they may have some preferential rights over other employees on any suitable alternative vacancies that are appropriate to their skills. We can provide you with advice and guidance if you need to consider redundancy to ensure you correctly follow the redundancy process.
Even if a redundancy situation is genuine, failure by an employer to follow the correct procedure can result in a finding of unfair dismissal at an Employment Tribunal. While the right to claim unfair dismissal only arises after two complete years of service, selection for a discriminatory reason can also result in a claim from the beginning of the employment relationship.
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