Can We Make Redundancies?

Employers never look forward to making redundancies, but it is sometimes necessary. If making redundancies does prove necessary, it is imperative that employers follow relevant procedures correctly and fairly.

What is a “Redundancy Situation?”

For there to be a legitimate redundancy situation one of the following conditions must be met:

• The business is closing;
• The relevant workplace is closing; or
• There is a reduced need for employees carrying out a particular task.

Is collective consultation required?

Where more than 20 employees are being made redundant over a period of 90 days or less an employer has a duty to collectively consult with its employees. Where 100 or more redundancies are proposed then the redundancy consultations must commence at 45 days before the first dismissal. When there are less than 100 redundancies, the consultations must commence at least 30 days before the first dismissal.

Is the redundancy (dismissal) fair?

If an employee has been continuously employed for more than 2 years they have the right not to be unfairly dismissed. Dismissal by reason of redundancy may be considered “unfair” if the employer has failed to undertake the following:

• Identify an appropriate pool of people who are at risk of redundancy;
• Apply objective criteria in selecting the pool of employees;
• Consult with the employees at risk of redundancy;
• Consider suitable alternative employment within the business.

Help and Advice

If you are considering making staff redundant, a timely conversation with an employment lawyer can ensure that the correct procedure is followed saving you time and money. For advice and assistance please contact the Employment Team at Poole Alcock Solicitors on 01270 625478. Alternatively you can visit our employment services page here or complete the form linked here and we will call you back.