Making staff redundant is never easy and the law in this area can seem like a minefield without the right advice. The Employment Rights Act 1996 provides that a redundancy occurs when:
- It becomes necessary to cease business in the area in which the employee was employed (Job redundancy); or>
- It becomes necessary to cease carrying out business in the place where the employee was employed to work (Workplace redundancy); or
- The requirements of the business are such that you no longer require as many employees to carry out work of a particular kind (Employee redundancy).
In cases where a redundancy situation exists, employers will have a potentially fair reason for dismissing an employee. However, employment law requires employers to inform and consult employees about proposed redundancies, where appropriate to adopt a fair selection procedure, and to follow a fair procedure when dismissing employees by reason of redundancy.
Failure to inform, consult and follow fair procedures when dismissing employees by reason of redundancy, leaves you at risk from unfair dismissal claims by employees.
We can assist you in ensuring that you comply with legislation and can help minimise the risks of defending Employment Tribunal claims brought by redundant employees.