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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.


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