Making a fair and reasonable decision regarding who should or should not be included in a redundancy pool will improve the chances of a smooth-running restructuring programme, as well as minimising the chance of a claim for unfair dismissal.
By looking at all the roles in the organisation that are affected by the restructure, the employer should consider carefully which roles to include in the pool. For example, consider including employees who work in the same or similar roles in other parts of the business including at other sites; or employees whose work might be interchangeable with those roles at direct risk of redundancy.
It is also important for the employer to adhere to any customary or agreed arrangements, or, if there are none, ensure that there is a reasonable basis for deciding which employees to include in the pool.
Jeya Thiruchelvam, employment law editor at XpertHR, said: “What will surprise many employers creating a redundancy pool is that there are no strict rules. For the employer to demonstrate that the dismissals are fair, it needs only to show that the approach it has taken was reasonable.
“That doesn’t mean to say it can just go through the motions. It has to build a genuine rationale. But if its reasoning is sound and well documented, it will be difficult for the employee to challenge the decision.”
XpertHR Tasks
The XpertHR Task, Decide who should be included in a redundancy pool , provides key resources to help you make the right decision when creating your redundancy pool. It includes detailed content such as:
Practical guidance on deciding which employees to include in a redundancy pool
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