Legal pitfalls for the employer in the redundancy process

I run a small to medium-sized business and I am faced with a need to downsize — probably making five or six employees redundant. How can I ensure that the process is fair and that I am not subsequently hauled up before an employment tribunal?

Q

I run a small to medium-sized business and I am faced with a need to downsize — probably making five or six employees redundant. How can I ensure that the process is fair and that I am not subsequently hauled up before an employment tribunal?

A

Redundancy is one of the fair reasons for dismissal but it must fall within the statutory definition (in s.339 of the Employment Rights Act 1996 (ERA)) and the selection of employees for redundancy must follow a fair procedure.

There are a number of legal pitfalls for the employer in the redundancy process. These are highlighted below.

  1. Ensure that it is a proper reason for redundancy.

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