We are all aware that there have been many redundancies over the last few years, cutting across all trades, professions and types of businesses.
Reasons for redundancy can be that a business has shut down altogether; the particular part of the business where the employee was employed has closed down; or there is a necessary reduction in the size of the workforce.
A redundancy is a potentially fair reason for dismissing an employee however, a fair and appropriate procedure must be followed to ensure the ultimate dismissal is fair. If the redundancy procedure is carried out properly, it will also enable the employees affected to understand, accept and plan for the redundancy.
Where 20 or more employees are being made redundant over a period of 90 days or less, an employer has specific legal obligations and timescales to comply with. In terms of planning from a commercial perspective, businesses should seek legal advice as soon as they think redundancy may be a possibility so as to enable them to comply with their legal obligations.
The types of issue that arise in a redundancy situation often relate to whether the redundancy is genuine; consultation; the selection process; alternative work; mobility clauses; TUPE; voluntary redundancy; lay-off; short time working; trade unions/collective consultation; trial periods; time off to look for work; compromise agreements and redundancy payments.