A Careful And Considered Redundancy Procedure Is Essential
In a recent case before the Employment Appeals Tribunal (EAT), they found that a ‘perfunctory and insensitive’ redundancy consultation is likely to make a redundancy dismissal unfair.
The Claimant in this case had over 40 years’ service and was a Director of the Respondent’s property management division. After a restructure, the Claimant was put at risk of redundancy and immediately put on ‘garden leave’ and told not to contact clients or colleagues.
The Respondent Company then made a number of procedural errors, including getting the Claimant’s first name wrong in a letter which understandably did not help in making the procedure seem considered or personal. However, the employment tribunal found that the dismissal was fair.
On appeal, the EAT found it troubling that the employment tribunal had found that the consultation was perfunctory and insensitive, yet they still considered that it was a reasonable consultation. The EAT said that such a process would not necessarily be unreasonable and hence unfair, but the employment tribunal should have found some form of reasoning to explain why matters that gave rise to criticism of the process, did not render the consultation unreasonable.
What does this mean for you?
It is essential that when a redundancy situation occurs you follow a proper procedure and take a fair and personal approach and avoid administrative errors.
Going through a restructure that could lead to redundancy? Talk to Tollers, we are HeRe for you.