Redundancy

When an employer is faced with work of a particular type ceasing or diminishing at a particular location, then there is a potential redundancy situation if this may lead to job losses.

Employers must consult with their employees in these circumstances. A redundancy consultation process must be meaningful and have the aims of trying to avoid redundancies; investigating any interest in voluntary redundancy; identifying the selection pool; setting selection criteria; and ensuring a fair process for redundancy selection where there are multiple employees to choose from. Part of this consultation process is also to identify jobs that are suitable alternatives to redundancy.

Employers also need to consider whether the employees selected for redundancy are to work their contractual notice or alternatively to make a payment in lieu of notice or, where provided for contractually, place them on garden leave.

There are more stringent rules where there are 20 or more employees at risk of redundancy, in which case the consultation period must last at least 30 days; and where there are 100 or more employees at risk this increases to a 90-day consultation period.

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