Employment Laws Regarding Redundancy

The global meltdown has triggered massive redundancies in the employment arena. There are specific rules in Employment laws that define redundancy situations. Knowledge of these rules by both employers and employees helps prevent a redundancy process that will end at the Employment Tribunal.

As per law redundancy situations arise when the entire business is shut down, or when business at a workplaces is closed or when the requirement of number of employees for a certain type of work reduces.

The redundancy process also has to be fair and in accordance with the law. Employers must resort to redundancies only as a last resort when other possibilities like unpaid sabbaticals and job sharing are not practical. Maximum advance notice must be given to employees and alternative employment should be arranged if that is feasible. Employers should have proper redundancy consultation and pools of employees who are engaged in identical works must be drafted during the redundancy process.

If these rules are not followed the redundancy process will automatically be considered unfair. The employee selection for redundancy must be fair. This means the criteria for such selection cannot be pregnancy, maternity leave, increase of health/safety matters, union membership/ employee representative capacity under TUPE, claim of statutory and flexible working privileges, taking part in grievance hearing and making PIDs.