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Redundancy of staff can be a reality faced by businesses both big and small as they encounter changes in operation, structure or growth. The term “redundancy” describes a situation where an employer no longer requires an employee’s role to be filled in the business, or the business becomes insolvent or bankrupt.
An employee’s role may become redundant as a result of a business utilising new technology or machinery, a reduced rate of sales or business growth, a change in location, or a business restructure.
It is essentially when the job itself, not the employee, becomes redundant.
What Is A Genuine Redundancy?
It is important that an employer ensures that a redundancy is genuine as, if they don’t, the redundant employee may make an unfair dismissal claim against the employer.
A redundancy is considered genuine when the person’s job no longer needs to be done, and the employer has followed the relevant consultation requirements.
A redundancy is not genuine if the employer:
- Still requires the role to be filled;
- Has failed to consult with the employee about the redundancy; or
- Could have moved the employee to another position in the employer’s business.
There are processes employers need to follow when their business is undergoing big changes which may lead to redundancy. A particularly important process is consulting with employees affected by the changes. Employees must be informed of these changes, including being given information about what the changes involve and how they may be affected. Employers must also provide employees with the opportunity to share their suggestions about the change.
What To Do If You’ve Been Made Redundant
Being made redundant is likely to be an extremely challenging event in a person’s working life. You may be faced with losing the job you enjoyed, financial instability, a loss of confidence, and the stress of finding a new job.
If you think that your redundancy was not genuine or was unlawful, seek assistance and feel free to get in touch with us to obtain advice on your rights. Or, if you need help effectuating a legal and sensitive redundancy and preparing the documents you’ll need, we’re also here to help.
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