To dismiss for redundancy can be problematic as an Employer must follow statutory steps to avoid a claim of procedural Unfair Dismissal, even if the reason for the redundancy is genuine. An Employer will need to follow a three step process.

Step 1

Write to the affected Employees informing them of the reason for the redundancy and invite them to a meeting to discuss the potential redundancies.

Step 2

Hold a meeting with affected Employees, either collectively at first, but individually following them being informed of the potential redundancy situation. They have a right to be accompanied at the meeting by either a colleague or Trade Union Representative. Notify the Employee of the outcome and the right of appeal.

Step 3

Hold an appeal meeting if requested by the Employee, at which they have the right to be accompanied, and inform the Employee of the decision.

There are 4 situations that will constitute a redundancy situation:

1. Closure of a business, for example, due to financial difficulties
2. Re-location of a business to a different site
3. A requirement for less people to undertake the same work
4. No requirement for a particular stand-alone role

Q. A business is forced to close due to a continued fall in work. What will the owner of the Company have to do to avoid Tribunal claims from those staff?

A. An Employer will need to follow the statutory procedures which states all relevant Employees should be consulted regarding the potential redundancy situation. The consultation should consider ways of avoiding the dismissals, reducing the number of employees to be dismissed, and mitigating the effects of dismissals. It must be undertaken by the Employer with a view to reaching an alternative to redundancy. This duty applies even when the employees to be made redundant are volunteers. Employers should consult with appropriate trade unions or employee representatives in all organisations, regardless of their size and the number of Employees to be dismissed, as soon as practicable and as fully as possible. Employers should consult at an early enough stage to allow discussion as to whether the proposed redundancies are necessary at all. Following this, in a business closure, if no alternative is reached to avoid the redundancies, all staff must be informed of when the redundancy will take effect, the amount of redundancy payment they will receive, and that they have the right of appeal.

Q. Employer wants to get rid of the ?dead wood? in his business and wants to make them redundant. What does he need to do?

A. Objective criteria, precisely defined and capable of being applied in an independent way should be used when determining which Employees are to be selected for redundancy. The purpose of having objective criteria is to ensure that Employees are not unfairly selected for redundancy. Examples of such criteria are attendance record, disciplinary record, experience and capability. The criteria must be consistently applied to all relevant Employees irrespective of the size of the Company and the number to be dismissed. In deciding a selection criteria consideration must be given to the future viability of the Company in order to maintain a balanced workforce after the redundancies have been made. Specific skills, flexibility, adaptability and an Employee's approach to work may be the most relevant considerations to the future success of the business.

The drafting of criteria is not enough to guarantee a fair and reasonable selection. Even though the criteria may satisfy the test of objectivity, the selection will still be unfair if they are carelessly or mistakenly applied. Employers will need to demonstrate that there has been a fair application of the criteria to all staff subject to redundancy if objective criteria are used.