Redundancy (2): redundancy and unfair dismissal

by Practical Law Employment

A practice note that provides guidance for employers in Great Britain on handling redundancy dismissals fairly to minimise the risk of unfair dismissal claims. Under the Employment Rights Act 1996 (ERA 1996), redundancy is a potentially fair reason for dismissal, but employers must adhere to a fair procedure based on principles established by case law to avoid liability. This practice note examines the core requirements for a fair redundancy process, drawing on the influential guidelines from key cases such as Polkey v A E Dayton Services Ltd. It explores the fundamental obligations to warn and consult with employees, adopt a fair basis for selection by defining an appropriate pool and applying objective criteria, and the duty to search for suitable alternative employment. The practice note also addresses the importance of individual consultation, the relationship with collective consultation obligations, the role of appeals, and the risks associated with discriminatory selection criteria, offering practical insights into this complex area of employment law.