Selection for redundancy

In many workplaces where unions operate, there will be an agreed procedure for redundancy selection. A selection procedure is rarely contractual, so changes to the selection procedure, even if made without consultation or agreement, will rarely be a breach of contract. By contrast, an agreed policy on enhanced redundancy payments is more likely to be contractual, meaning that consent will be needed to change it (see Chapter 3: Starting work and the employment contract).

An important EAT decision, Williams v Compair Maxim ([1982] IRLR 83), laid down some basic guidelines for employers to follow to carry out a fair redundancy dismissal, regardless of the number of employees at risk. They are:

• give as much warning as possible of likely redundancies;

• consult reps on the best way of causing as little hardship as possible to employees;

• draw up agreed selection criteria;

• as far as possible, make sure chosen criteria can be verified objectively (for example, via attendance records) rather than relying on the subjective opinion of a manager;

• carry out the selection exercise fairly, following the agreed criteria;

• consider any representations; and

• offer alternative employment where possible.