Redundancy

Redundancy

Redundancy is a complex area of the law. It is often confused with dismissals for business re-organisation. The word “redundancy” has a specific legal meaning, but essentially redundancies arise in two types of situation, namely:-

  1. When a business closes down or part of the business in which an employee works, or at the location where the employee works, closes;
  2. Where the business no longer needs as many employees to carry out a particular kind of work.

When dismissing for redundancy there is a need to follow a proper and fair procedure. The most frequent and expensive error that an employer can make is to assume that consultation would not make any difference. In essence, the procedure falls into 3 stages:-

  1. consultation
  2. selection
  3. consideration of alternative employment

For an idea as to the compensation an employee should be given take a look at Redundancy Cost Ready Reckoner.

Careful consideration should be given at each stage of the Redundancy process to ensure that a fair procedure is followed. Only then can an employer safely dismiss on the grounds of redundancy. Contact Gareth Pobjoy or Nick Crook who are experienced in handling redundancy situations and will guide you through the Redundancy process.

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