Elliot Hawker

Aug 6, 20181 min

When is a redundancy not a redundancy?

There have been a few examples recently which have highlighted the misunderstanding that employers continue to have when embarking on a redundancy exercise.
 

 
Employers often mistakenly think that redundancy can be used to ‘hide’ a multitude of syns, that perhaps have been left unaddressed for a number of years.
 

 
Many employers have tried to use redundancy as a vehicle to address what is in reality a performance management issue, or in a case recently where the employer was looking to outsource a function and believed that they could make the team redundant. Lets just clear that up now, in
 

 
majority of cases it would be a Transfer of Undertakings or “TUPE” rather than a redundancy.
 

 
But what’s the risk I hear you cry?
 

 
Well, to use redundancy to address anything other than a genuine redundancy? Well, it could render any subsequent dismissal as “unfair” leaving the employer exposed to potential Employment Tribunal clams and with potential awards for Unfair Dismissal reaching to over £80,000 (or a years pay, whichever is the least) it is important to think this through.
 

 
Whilst there is a commercial argument to say, well that might be cheaper than continuing with the current situation, it is often best to take advice and let a commercial HR company such as NucleusHR guide you through and help you implement the right strategy, after taking into account the options
 

 
available.