• Payroll Quotation Request

• Guide to Payroll
• Guide to Pension Schemes
• GUIDE to Redundancy
• Guide to Workplace Conduct
• Employment Compliance

Guides: Redundancy

An Employer's Guide to Redundancy

Redundancy Guide Contents > The basics - identifying the job(s) to be made redundant

1. The basics

Perhaps the single most important point that the employer must grasp is that it is the job that is made redundant - not the individual.

Discussions and correspondence should always refer to a job no longer required or there being insufficient demand. The importance of the point can scarcely be overstated - the employer who targets an individual for redundancy rather than a job is already well on the way to an unfair dismissal claim.

Identifying the job(s) to be made redundant

Defining the job that is to be made redundant is far from easy in smaller undertakings.

Typically, there may only be a handful of employees. Equally typically, unlike large organisations, staff will do whatever needs to be done that day, often undertaking duties that are nominally those of a colleague, particularly in situations of holiday and sickness but also doing so ordinarily as part of dealing with the workload generally. Smaller employers expect no less – there is no time for the niceties of demarcation.

The managing proprietor utilises the staff that he has available to best effect -- a team effort. If, unfortunately, there is insufficient work or a change in work practice requires that a post is no longer required the employer must be scrupulously fair in his treatment of the staff. Typically, the remaining staff will take over the work or the continuing parts of it. In such a situation in effect a new job has been created -- there are therefore two (or more) jobs that are no longer required -- not one. Thus, to be fair to each of the job holders, each must be informed that their position is to be made redundant and each should be given a fair opportunity to apply for the new post. It is very much a matter of common sense and most importantly, of treating people fairly. Too often an employer will determine who is to be made redundant and then share out his or her work among the remaining employees. In doing so he lays the foundations for a wrongful dismissal claim.

It is very much a question of degree and fact in each individual case. If the remaining duties to be taken on are only a modest addition to a readily distinguishable job (from that which is being made redundant), then it may not be a new post, but if a substantial chunk of the duties are allocated to another post that is already similar to, or indistinguishable from the post to be lost then one might fairly say a new post has been created in place of the two existing posts, and that the holders of each of the post affected should have an equal opportunity to apply for the new post.

If a group of 20 or more employees are to be dismissed then special redundancy rules apply (‘a collective consultation’).

next (selection for redundancy – minimising the risk of unfair dismissal claims) >>

Disclaimer

While we hope the above has been found to be useful it is intended only as a general guide, may not reflect the very latest developments in law, and cannot be a substitute for professional advice. We cannot accept any responsibility for loss occasioned to any person acting or refraining from acting as a result of material contained in this guide.