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Employers warned to follow redundancy rules

Practice group: Employment law


04 June 2008

Employers have been warned to be "extra vigilant" in their approach to the redundancy process by an employment lawyer.

Richard Green said failing to follow the correct procedures when making an employee redundant could make a dismissal automatically unfair and lead to other successful unfair dismissal claims.

His advice to employers is to seek legal advice before starting the redundancy process.

"Such advice would cover the need for objective fair selection criteria, a proper consultation process prior to any decisions being made and the consideration of available alternative positions within the organisation concerned," he said.

The impact of the difficult time can be minimised and costly tribunals avoided if the redundancy process is handled legally, he added.

Last month the Chartered Management Institute said redundancies have hit their highest rate since 2001.

Its National Management Salary Survey revealed a redundancy rate of three per cent across senior management teams, which equates to a doubling in the rate over the 12 months.

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