Redundancy is a daunting and often used phrase in employment but one that also has a very precise legal definition. Generally, redundancy is a term used where an employer reduces head count within its workforce for business reasons rather than the characteristics of the departing employees.
There are many reasons for redundancies, including technological developments, changes in the nature of services or products provided by the employer and economic pressures (such as recession) making business closure or reduction in staff numbers necessary.
When considering redundancy within your organisation it is vital that the correct procedure is followed and that the risk of wrongful dismissal, breach of contract or unfair dismissal claims is minimised. In addition, if you are proposing to make 20 or more employees redundant in 90 days or less, you have an obligation to inform and consult with your employees. Breaching your collective consultation obligations can be expensive, with protected awards of up to 90 days actual pay being awarded to each affected employee.
Our employment law solicitors regularly advise clients on their redundancy procedure and have defended organisations at the Employment Tribunal in redundancy related claims.
For more information please contact Richard Fox at rfox@kingsleynapley.co.uk.
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