Unfair Dismissal Redundancy Claim

Unfair Dismissal Redundancy

An Unfair Dismissal Redundancy Claim arises when an employee believes they have been unfairly dismissed on the grounds of redundancy. Redundancy is a potentially fair reason for dismissal under UK employment law, but the dismissal must be carried out fairly and in accordance with legal requirements. If the employer fails to follow a fair procedure or acts unreasonably, the employee may have grounds for an unfair dismissal claim.

Key Elements of an Unfair Dismissal Redundancy Claim

Eligibility to Claim

• The employee must have at least two years of continuous service (or one year if employed before 6 April 2012) to qualify for unfair dismissal protection.

• The dismissal must fall under the definition of unfair dismissal under the Employment Rights Act 1996.

Definition of Redundancy

• Redundancy is a genuine reason for dismissal and occurs when:

  • The employer ceases or intends to cease carrying on the business for which the employee was employed.

  • The employer ceases or intends to cease carrying on the business in the place where the employee was employed.

  • The requirements for employees to carry out work of a particular kind have ceased or diminished.

Fair Reason for Dismissal

• Redundancy can be a fair reason for dismissal, but the employer must:

  • Demonstrate that the redundancy situation is genuine.

  • Follow a fair and proper procedure.

Fair Procedure

• To ensure fairness, the employer must:

  • Consult with employees: Engage in meaningful consultation with affected employees or their representatives. This includes discussing the reasons for redundancy, exploring alternatives, and considering any suggestions from employees.

  • Use a fair selection process: Use objective and non-discriminatory criteria to select employees for redundancy (e.g., skills, qualifications, performance, and attendance). Avoid discriminatory criteria such as age, gender, race, disability, or pregnancy.

  • Consider alternatives to redundancy: Explore options such as redeployment, reduced hours, or voluntary redundancy.

  • Give proper notice: Provide the employee with the correct notice period or payment in lieu of notice.

  • Pay redundancy pay: Ensure the employee receives their statutory redundancy pay (if eligible) and any contractual redundancy pay.

Unfair Dismissal

• A redundancy dismissal may be considered unfair if the employer:

  • Did not have a genuine redundancy situation.

  • Did not follow a fair consultation process.

  • Used unfair or discriminatory selection criteria.

  • Did not consider alternatives to redundancy.

  • Failed to follow a fair procedure.

Automatic Unfair Dismissal

• A redundancy dismissal is automatically unfair if it is for certain prohibited reasons, such as:

  • Pregnancy or maternity-related reasons.

  • Exercising statutory rights (e.g., requesting flexible working).

  • Whistleblowing.

  • Trade union membership or activities.

Burden of Proof

• The employer must show that the dismissal was for a potentially fair reason (redundancy) and that they acted reasonably in treating that reason as sufficient to dismiss.

Potential Outcomes

• If the tribunal finds the dismissal unfair, it may award:

  • Reinstatement (returning to the same job).

  • Re-engagement (returning to a different job with the same employer).

  • Compensation, which includes:

    • Basic Award: Calculated similarly to statutory redundancy pay, based on age, length of service, and weekly pay (subject to statutory limits).

    • Compensatory Award: Covers financial losses (e.g., lost earnings), subject to a statutory cap (currently £105,707 or 52 weeks’ pay, whichever is lower).

Common Reasons for Unfair Dismissal in Redundancy Cases

• Lack of genuine redundancy situation.

• Failure to consult with employees.

• Use of unfair or discriminatory selection criteria.

• Failure to consider alternatives to redundancy.

• Failure to follow a fair procedure.

How to Bring a Claim

1. The employee must submit a claim to the employment tribunal within 3 months less one day from the date of dismissal.

2. Early ACAS conciliation is required before submitting the claim.

3. The claim is made using the ET1 form, and complete and attach the template with the ET1 form.

Defending a Redundancy Dismissal

Employers defending a redundancy dismissal must demonstrate:

• They had a genuine redundancy situation.

• They followed a fair consultation process.

• They used fair and objective selection criteria.

• They considered alternatives to redundancy.

Importance of Legal Advice

Both employees and employers should seek legal advice from our advisors when dealing with unfair dismissal redundancy claims to ensure compliance with employment law and to present their case effectively.

If you are involved in such a claim, it is crucial to gather all relevant evidence (e.g., redundancy policies, consultation records, selection criteria, and correspondence) to support your position.

Unfair Dismissal Redundancy Claim Template

Redundancy occurs essentially when either the job disappears or the place of work disappears. If you have been dismissed because of a redundancy and feel it is unfair and not a genuine redundancy then use our Unfair Dismissal Redundancy Particulars of Claim and guidance notes to start a unfair dismissal claim.

With this Particulars of Claim template, you may write your particulars of claim and attach as part of section 8.2 of the ET1 Claim form after you have been through the ACAS mediation process. If you need help to finalise one of our free ET1 Particulars of Claim Templates we can coach you or check it for you.