Employers should think hard before opting to take the redundancy route, says Sarah Boulton-Jones
Redundancy is a potentially fair reason for dismissal. However, unless the employer follows a proper procedure, the dismissal may still be found to be unfair. If an employer proposes to make redundant 20 or more employees within a period of 90 days or less, it is also obliged to follow a collective consultation procedure. This involves consulting with employee representatives about the proposed redundancies before they take effect.
Individual redundancies
Case law over the years has established that the key elements of a fair dismissal by reason of redundancy are:
● a genuine redundancy situation;
● fair selection;
● warning and consultation; and
● consideration of suitable alternative employment.
In addition, since the introduction of the statutory dismissal and disciplinary procedures (DDPs) in 2004, a redundancy dismissal is automatically unfair if the DDPs are not followed. The DDPs require an employer considering dismissing an employee to follow the basic procedure outlined below:
● Step 1: The employer must send the employee a letter setting out why it is contemplating
