Redundancy can occur when an employer’s business, or part of the business has ceased to operate and/or the employer’s business has moved to a different place; the business’s need for work of a particular type has ceased or diminished meaning the role/s are no longer required.
It is important to note that in redundancy situations, it is the role, not the person who is made redundant.
The rules on redundancy are unclear and open to interpretation which can cause people to be subjected to unfair practices and processes. The obligations on the employer when making 20 or less roles redundant is to merely act ‘fairly and reasonably’ when looking at the candidate/s who are at risk. In situations where 20 or more people are made redundant a more regulated process is required (please contact us for details if this applies to your situation).
The guidance suggests that in order for a redundancy situation to be fair and reasonable, consideration needs to be given to the following:
- Is there a genuine redundancy situation/need?
- Have the correct employees who are likely to be affected by the redundancy been identified?
- Has particular consideration been given to identifying those who undertake similar work?
- Has a consultation taken place where you have been shown your scoring and/or allowed an opportunity to consider any suitable alternative roles.
There is no actual requirement for a step process or a number of consultation meetings unless the redundancy is for 20 or more roles. However, it is good practice to meet with the individuals at risk to keep them abreast of the developments and seek their assistance with any possible resolutions.
If you feel that you have been unfairly selected, for example you are the only person within your team placed at risk and selected, you may have been unfairly dismissed.
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