Editor's message: Where there is a pool of potentially redundant employees, the criteria that employers use to select employees for redundancy is critical. Employers should draw up fair, relevant, transparent and non-discriminatory selection criteria. The criteria should be objective and avoid being based solely on personal opinion.
Redundancy selection criteria that employers commonly use are: measurable levels of skills and competencies; assessments of past performance; and disciplinary record.
Employers need to be acutely aware of the dangers of including potentially discriminatory redundancy selection criteria. While employees' attendance record can be used as one of the measurements, employers must take into account the reason for absences. A failure to discount absences related to, for example, disability or pregnancy is likely to be discriminatory.
Stephen Simpson, principal employment law editor
Updated to include information on the maximum amount of a week’s pay for the purpose of calculating statutory redundancy pay, effective from 6 April 2020.
Updated to take account of the General Data Protection Regulation, in force from 25 May 2018, and to include information on Keeping Kids Company (in compulsory liquidation) v Smith and others, concerning the employer's duty to consult on collective redundancies.
Updated to take account of the General Data Protection Regulation, in force from 25 May 2018.
The second part of XpertHR research into redundancy explores how employers manage the process, including what selection criteria is used and what compensation is paid to those who are made redundant, as well as any alternative measures employers use to avoid redundancy.
In DLA Piper's latest case report, the Employment Appeal Tribunal (EAT) tackled the thorny issue of applying sickness absence criteria in redundancy selection to disabled employees at risk of redundancy.
Joe Beeston, Kate Edminson, Rosie Kight and David Rintoul are associate solicitors and Iain Naylor is a trainee solicitor at Addleshaw Goddard LLP. They round up the latest rulings. They round up the latest rulings.
David Malamatenios is a partner and Colin Makin, Linda Quinn, Krishna Santra and Sandra Martins are associates at Colman Coyle Solicitors. They round up the latest rulings.
Claire Thomas is managing associate, and Chris McAvoy, Joelle Parkinson, David Rintoul, and Gerri Hurst associates at Addleshaw Goddard LLP. They round up the latest rulings.
HR and legal information and guidance relating to redundancy selection criteria.