Redundancy - Achieving Fair Redundancy

The Employer should:

i) Notify the secretary of state where appropriate 

ii) Give warning of redundancy to the union/employee representatives 

iii) Consult the individual likely to be affected 

iv) Consult with the union/ employee reps to try to agree selection criteria 

v) Establish objective selection criteria 

vi) Ensure that selection is in accordance with criteria established 

vii) Look for alternative employment for employees affected

The ACAS cose does not apply yo a dismissal by reason of redundancy HOWEVER it will be necessary to follow fair procedure as normal or UD will apply. 

No statutary requirements but UD could still be claimed if do not follow these steps:

• Consultation
• Fair selection criteria
• Where the employer offers the employee new employment 

The Employers should consider providing the employee with the following: 

• Reason for his proposals 
• The numbers and descriptions of employees who are proposed for redundancy 
• Total number of employees of any such description employed by employer 
• Proposed method of selection the employees who may be dismissed
• Proposed method of carying out the dismissals with due regard to any agreed procedure, including the period over which dismissals are to take effect
• The proposed method of calculating the amount of any redundancy payment made

Further, the consultation should include consultation about ways of
i) avoiding dismissals
ii) reducing number of employees to be dismissed and 
iii) mitigation the consequences of the dismissals

No clear rule of law on how to determine the approach in determining the pool for selection. Must take care in defining the pool and have a justifiable basis for constructing it the way he has :

• Whether groups are employees doing similar work
• Whether the employees jobs are interchangable
• Whether having established the pool was agreed by the union 

Must by objective as possible and so may include

Watch out for discrimination sickdays = disabled or part-time workers = women

Two possible situations: 

i) Employee reinstated within 4 weeks

ii) Employer finds alternative work in the company or with an associated company 4 weeks of the end of the originial employment. 

The renewal or re-engagement must take effect within 4 weeks for the e/ees service to count as continous and not be treated as being dismissed. 

Employer must make an offer of continued employment before employment ends to count dismissal as "vanished" 

[Age factor] X [service] x [weeks pay] + [any contractual claims] 

>22= 0.5       Max 20 yrs       In Book
<22=1
41+=1.5

Will equal the reward given for a redundancy payment