Redundancy

A fair redundancy process should be followed where a genuine redundancy situation arises. Redundancy situations may be due to a reduction of the work for which the employee is engaged, where company premises are being relocated or where, perhaps, a serious financial situation is arising dictating early cuts in labour costs.

Redundancy must not be used simply as a vehicle to dismiss an employee who is proving unsatisfactory.

Wherever possible an employer should consider alternatives to redundancy such as reducing the use of agency workers, ceasing recruitment or possibly using lay off or short time working.

A full, formal and proper consultancy process should always be provided. Ideally this should be supported by documents to show:

• How the redundancy situation has arisen
• Outline clearly the criteria being used to select which employees are to be made redundant
• Consideration that has been given to finding alternative employment within the company or associated companies/group

Employers should fully consult with the affected employees prior to making any selection.

Employees who are put at risk of redundancy must be given reasons why they were selected and the opportunity to challenge that selection.