Redundancy is a potentially fair reason for dismissal, but it is important to get the procedure right to avoid the risk of claims.

Some business reorganisations which do not give rise to a redundancy situation may nevertheless result in fair dismissals for ‘some other substantial reason’ under UK employment law, and our team can guide our business clients through this to limit the opportunity for any formal challenge by exiting employees.

What is a redundancy situation?

A redundancy situation arises where there is a workplace closure, the employer intends to cease carrying out the work for which the employee was employed or the employer has more employees than it needs to carry out the work. Reorganisations resulting in 'some other substantial reason' dismissals arise when there is a legitimate business need to implement changes in the workforce. In either case, fair procedure is key.

How we can help

Our Employment team provide commercially sensitive and pragmatic advice and support to guide business clients through any restructure or redundancy process, ensuring that the business acts within the law in achieving it goals and objectives.

We can advise against common pitfalls such as hidden discrimination, special rules around maternity leave, employee rights during notice, the requirement to offer suitable alternative employment and the requirement to implement trial periods.

Our services include:

• Assisting in the identification of a legitimate redundancy situation and the forecasting of redundancy pay calculations;
• Supporting the use of voluntary redundancy measures or alternatives to redundancy to eliminate or reduce the need for compulsory redundancies;
• Assisting through any necessary collective consultation process, required where the business is proposing to dismiss 20 or more employees within 90 days, including the election of representatives;
• Advising on the selection of provisionally redundant employees, including the pooling of staff and the use of suitable selection criteria;
• Supporting managers through individual consultation, necessary irrespective of any collective consultation conducted by the business;
• Providing a full suite of redundancy documentation, including template letters, selection grids, offers of alternative employment and advice notes or bespoke training for managers carrying out the process;
• Drafting and negotiating of Settlement Agreements where appropriate; and
• Providing specialist assistance in managing senior exits.