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What is redundancy?
Its when the job or workplace disappears under s 139 ERA. This includes the closure of a business as a whole, the closure of the workplace or a reduction in need of employees
Reduction in need of employees
There could be a reduction in need of employees due to recession. In determining • whether an employee is redundant, we need to consider:
1) Ask if the employee was dismissed
2) Ask if the requirements of the employer’s business for employees to carry out work of a particular kind had ceased/diminished or were expected ‘’ and
3) Whether the dismissal of the employee was wholly/mainly by the state of affairs
What are the types of consultation required
If less than 20 employees are being dismissed within 90 days or less, then a individual consultation must be carried out

If more than 20 employees are being dismissed within 90 days or less, then a individual and collective consultation must be carried out
What is an individual consultation
1) Plan – The company should identify the necessity of making dismissals by reason of redundancy (i.e the company is suffering financially). The company should also consider whether there are other ways of reducing costs (i.e. moving to cheaper premises, changing suppliers). The company can also offer staff opportunity to work less hours
2) Identify selection pool – Company needs to decide on the precise areas of the business where the redundancies are likely to take place and identify the roles likely to be affected
3) Invite voluntary redundancies – Company should inform its workforce of the potential redundancy situation and the reasons for redundancy. It should invite voluntary redundancies before proceeding with the force redundancy process
4) Objective selection criteria – Company will need to decide what criteria it will use to select the employees. Selection criteria must be objective, clear consistent and supported by evidence (i.e. Company could use the number of sales assistants have sold in the last year)
5) Consultation – Company should meet with each affected employee, explain the pool and the selection criteria and ask for any comments prior to the pool and selection criteria being finalised. Once the criteria is finalised and has selected the employees to be made redundant, it should meet with each employee inform them and allow them to reflect on the selection.
6) Suitable alternative employment – Selected employees should be allowed reasonable time off to seek alternative employment and should be offered any suitable employment available in the company
7) The trial period – if employee is offered alternative employment and the conditions/duty of work is different from the current job, they must be offered a trial period of 4 weeks
8) Send out dismissal notice to redundant employees – If no suitable employment is found, dismissal notices must be sent out
9) Appeal against selection – Employees should be allowed to appeal against the selection for redundancy
What is an collective consultation
1) Duty to consult appropriate representatives – s 188 TULRCA 1992 sets out the duty to consult with trade union or elected representatives
--> consultation must begin in ‘good time’, 30 days before the first dismissal takes effect
--> consultation should concentrate on – avoiding the dismissal if possible, mitigating the consequences of the dismissal
2) Notify to the Department for Business, Innovation and Skills (BIS) – employer must give 30 day’s notice to BIS
3) Protective award – s 189 sets out if the employer fails to comply with the obligation to consult with the appropriate representatives a claim can be issued to ET for a protective award
4) Individual consultation
If an employee has been dismissed, what type of remedy are entitled to and what conditions must be satisfied:
Statutory Redundancy Payment

1) They were an employee
2) Was continuously employed for 2 years prior to EDT
3) Was dismissed by reason of redundancy
4) Brings the claim within 6 months of EDT
5) Does not fall within the excluded category and
6) Has not unreasonably refused suitable alternative employment
How is compensation calculated in SRP
calculated as basic pay - age factor x service x weeks pay
What are other remedies are available to a redundant employee?
1) wrongful dismissal
2) SRP
3) unfair dismissal seeking reinstatement, re-engagement and or compensation
4) protective award where collective consultation has not been carried out correctly
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