It is an inevitable part of any business that from time-to-time some employees will become surplus to requirements. However, making an employee redundant should be treated with caution, as if there is not a genuine redundancy situation then the employee may have a claim for unfair dismissal. Such claims not only lead to financial loss, but also waste management time.
Genuine redundancy situations occur where an employer needs to reduce their workforce, close the business, relocate the business, or where work of a certain kind is no longer needed.
It is always necessary to follow reasonable redundancy procedures. This involves a duty to consult employees who may be affected, consider alternative vacancies, provide the correct level of redundancy payment, and provide employees with the right to appeal. In particular the criteria for selecting employees to be made redundant must be fair, consistent and non-discriminatory.
Our experienced solicitors can give you advice on all of the above and guide you through the process.