Redundancy
In general terms redundancy occurs when:
-
Redundancy is a fair reason for dismissal but there are a number of circumstances
in which an employee who has been made redundant may pursue a claim for unfair
dismissal.
Consultation is an important part of the redundancy process. It offers an opportunity
for the employer to explain the reason for taking such a step. It offers the employees
the opportunity to explore with the employer measures to avoid any redundancies,
such as early retirement of staff, job sharing, cessation of overtime or even acceptance
of a reduction in pay. If redundancies are inevitable, it also allows the parties the chance
to agree a fair process by which employees can be selected for redundancy.
Claims can be avoided by developing and applying a clear and fair redundancy procedure
and consulting carefully with trade unions or employee representatives in good time
before the first dismissals take effect.
The business which employs the affected employees closes down.
-The business is closing down at the site where the affected employees work and is relocating to another site.
-Fewer employees are required to do a particular kind of work.