A redundancy is a dismissal where a business closes either wholly, at a particular workplace, or there is a reduced need for employees to carry out work of a particular type.

The dismissal is only fair when the statutory minimum procedures have been met. Failure to do this means that the dismissal is automatically unfair and the Employment Tribunal can increase compensation by up to 50%.

A fair procedure will include the following:-

• Selection
• Consultation
• An offer of suitable alternative employment or, at least, consideration as to whether any is available.
• Appeal

Before October 2006 it was common for Last in, First Out (LIFO) to be used as a selection criteria. However, since the introduction of the Employment Equality (Age) Regulations 2006 this could result in a claim of indirect age discrimination as younger employees have not had the opportunity of building up service. It is also potentially sex discriminatory due to women taking career breaks to have children and look after family.

The redundancy process can be a difficult time for both employer and employees. Instructing solicitors at an early stage can ensure that the process runs as smoothly as possible.

If you require any further advice or assistance please contact Sarah Stanyer or a member of the Litigation team at Wortley Byers on 01277 268318 or sstanyer@wortleybyers.co.uk.

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