Legal
aggrieved. Written communications are essential in order to keep records of the steps an organisation has taken when dealing with redundancies. But equally important is the need to have meetings with employees, to listen to their comments and act appropriately. Once again this could help avoid a tribunal claim.
In addition, legally, you need to look at whether any staff can be redeployed and whether voluntary redundancies would be a better option. As stated, face- to-face meetings with individuals and written communication is essential. Staff should be allowed to suggest alternatives to redundancy. Any suggestions must be considered carefully and should not be dismissed out of hand.
So, what are the risks if you get it wrong? There are a number of legal exposures in getting things wrong. Any dismissal on the grounds of redundancy must be fair and reasonable. This can be disregarded. Take, the person who confided to me that they liked to shake up the workforce by making redundancies every couple of years. The professed aim was to keep staff 'on their toes' and 'get rid of the dead wood'. Not a good approach! This is because one of the main
risks is that someone will claim unfair dismissal and you might have to pay them compensation. There are obligations for consultation where more than 20 employees are to be made redundant in a 90 day period. If you don’t comply, staff will also be entitled to a protective award. There are also the overlooked risks, such as loss of morale, reduced productivity and loss of talented staff.
It is the case law in employment law which makes it so challenging. Take, for example, the case of Chagger v Abbey National. The Bank used subjective criteria and referred to matters which had never been raised before the redundancy process. Mr Chagger was awarded £2.7 million in damages. In Pinewood Repro
Limited t/a County Print v Page, there was insufficient detail on the selection criteria to allow the employee to respond effectively. In the case of Beck v Canadian Imperial Bank of Commerce, the employee’s claim for age discrimination was upheld. He was made redundant because the Bank had a requirement for a 'younger, entrepreneurial profile'. Mr Beck was an older man.
In each instance, the organisation’s actions would potentially make the dismissal unfair, sometimes with significant consequences. •
Claudia Gerrard is a legal consultant at Excello Law. You can call her on 07447 985647 or email her at
cgerrard@excellolaw.co.uk
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www.hwilliams.co.uk Page 28 September 2013
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