Faster dismissals likely for relocation redundancies

In practice, this new law is most likely to be used by transferees who operate from a different geographical location, meaning that the transferor’s employees must relocate or else face redundancy. Under the 2014 Regulations, for transfers on or after 31 January 2014, relocation is a potentially fair ETO reason for dismissal (see page 33). These changes will encourage transferees who operate out of a different location to begin consulting before the transfer with those workers who face relocation, with a view to carrying out redundancy dismissals as soon as possible after the transfer date.

Remember that these changes only affect the rules on collective — not individual — consultation. After the transfer, the transferee will still need to engage in effective individual redundancy consultation, and give full statutory or contractual notice of any dismissals, in order to be able to carry out fair dismissals, or else risk an unfair dismissal claim.

A transferee who targets union reps or activists for redundancy will risk a claim for automatically unfair dismissal under section 105 ERA 96 and section 153 of TULRCA.