The credit crunch has seen a dramatic rise in redundancies. The law is very prescriptive on what constitutes a redundancy situation and redundancy advice is important to both employers and employees to ensure a fair redundancy process that meets legal requirements.



Redundancy process

A redundancy situation occurs in three scenarios:

• The actual or intended close of the whole business.

• The actual or intended close of business at a particular workplace.

• Reduced need for employees for a particular kind of work.

Even where redundancy is the genuine reason for dismissal, employers must follow a set of procedures to ensure a fair and reasonable process. The advice of redundancy solicitors can mean the difference between a fair redundancy process and one that ends in the Employment Tribunal.

Employers should:

• Explore all options, for example job sharing, unpaid sabbaticals etc, to ensure redundancy is the last option.

• Give advance warning - as much as possible.

• Conduct a meaningful and proper redundancy consultation.

• Draw up a relevant pool / number of pools, containing employees doing similar work where there is reduced need for these employees.

• Select individuals for redundancy using a set of fair and objective criteria.

• Offer alternative suitable employment where possible.

Redundancy Employment Rights

Dismissal for redundancy may be considered unfair for a number of reasons, including where:

• There is no genuine redundancy situation and redundancy is not the real reason for dismissal.

• There is no meaningful or proper redundancy consultation process.

• An employee is unfairly selected.

• An employer fails to offer alternative employment.

How we can help?

We offer advice and redundancy support to employers and employees.

For employers we can help ensure your redundancy process is fair and legally correct with ad hoc redundancy support from £150-£220 an hour. We also offer a cost-effective fixed-fee redundancy legal advice package for employers making less than 20 employees redundant (from £945 plus VAT).

For employees we offer advice on redundancy employment rights where you believe you have been treated unfairly or where the correct procedures have not been followed.

Dismissal on the grounds of redundancy can also automatically be unfair dismissal where an employee is selected for one of the following reasons:

• Pregnancy or maternity leave.

• Raising health and safety issues.

• Shop workers and betting workers refusing Sunday work.

• Union membership or activities.

• Asserting statutory rights, for instance under the Working Time Regulations or National Minimum Wage rights.

• Acting as an employee representative under TUPE or collective redundancy legislation.

• Taking time off to care for dependents.

• Asserting flexible working rights.

• Acting as a companion in a disciplinary/grievance hearing.

• Making a Public Interest Disclosure (‘whistleblowing').

Advice on the redundancy process and redundancy employment rights

Our factsheets offer practical redundancy legal advice explaining redundancy rights and outlining necessary procedures.

Redundancy Advice for Employers Factsheet

If you would like to discuss the law in relation to grievance and disciplinary issues or dismissal email Fiona Martin or call your local martin searle solicitors' office on 01273 609911 (Brighton) or 0208 256 4490 (Croydon).