In a corporate world of cutting costs and increasing efficiency, redundancy schemes have become a popular option. However, unless done properly, they lead to costly cases of unfair dismissal or discrimination. Thus, consider these basic rules before opting for redundancy.
Both removing a role and creating a less senior role to replace the existing role, without a reduction of work, are done to rid the workplace of troublesome or inefficient employees. However, a tribunal may find the dismissal unfair if the dismissal cannot be justified under the three accepted redundancy reasons of cessation of business, cessation of business at the employee’s site, or a reduction or cessation of work.
Additionally, when removing persons it is important to consider whether there are similar roles that would come under the same scrutiny. “Bumping” (an employee – whose job was not at risk – being made redundant because of other employees getting their roles) is also a way to open the company up to a lawsuit. When selecting who stays on, decide on a mix between performance, attendance, disciplinary records, qualifications, skills and experience to ensure you get your top performers along with skilled staff who can continue operations.
Remember to tread lightly where age and disability are concerned: do not unfairly use age as a selection criteria for a role, as the younger employees may not have been working long enough to be able to compete. Decide whether experience is indicated by length of service. Also, make reasonable adjustments for those with disabilities.
Do identify and offer suitable alternative employment for those made redundant. Also, maternity regulations mean that those on maternity/paternity/shared parental leave should be given preference.
