Reasons For Redundancy: What\u2019s Fair & What Isn\u2019t?

Summary

Redundancy happens when a company needs to reduce its workforce. However, the process must be done fairly. For example, employees can’t be chosen for redundancy based on certain protected characteristics, like their age, and an employer must have a real business reason for making employees redundant. Facing redundancy can be tough, and it’s natural to question the legitimacy or fairness of the reasons behind it. All employees under notice of redundancy have the right not to be unfairly selected for redundancy and, before making any redundancy decisions, employers should try and avoid redundancies where possible. In this article, we’ll cover what makes a reason for redundancy fair and legal and explore your rights if you’re going through the process. Employers should explore all other options before resorting to redundancies, especially compulsory redundancies. This could include: * Introducing changes to working arrangements or cutting down on overtime. * Ending contracts with self-employed contractors or freelancers. * Pausing recruitment. * Filling vacant positions with existing employees. * Implementing temporary layoffs. As a last resort before making compulsory redundancies.

Key information

• Introducing changes to working arrangements or cutting down on overtime.
• Ending contracts with self-employed contractors or freelancers.
• Filling vacant positions with existing employees.
• Implementing temporary layoffs.
• The business is struggling financially.
• All or some of the business stops operating due to insolvency.
• Your skills are no longer required for the job.
• Your work will be done by others due to restructuring.
• The business or your role is moving to a different location.
• The business is taken over by another company or the owner of the business dies.
• Skills, qualifications, and ability.
• Quality of work and performance evaluations.

Practical guidance

• Source: Reasons For Redundancy: What\u2019s Fair & What Isn\u2019t?

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