Failing to support employees during a redundancy process can have serious consequences for businesses, as highlighted in a recent case by the Employment Appeal Tribunal (EAT). The case serves as a reminder for SMEs on the importance of providing adequate support to staff during redundancy, even when fair selection criteria have been followed. Here’s what employers need to know to avoid similar risks.
In the case of Ms. A Goodwin v. JHH Ltd & Another, the EAT found the employer guilty of unfair dismissal due to their failure to support the employee in finding suitable alternative roles within the company. Ms. Goodwin, who had been employed for nine years, was dismissed on the grounds of redundancy after the company went through a restructure. The company followed a fair selection criteria, but failed to provide any support to Ms. Goodwin in finding alternative roles within the company. As a result, the EAT ruled that the dismissal was unfair and ordered the company to pay compensation.
This case highlights the importance of providing support and options for employees during a redundancy process. Fair selection criteria alone are not enough to ensure a fair and lawful dismissal. Employers have a duty to explore all possible alternatives and to support employees in finding suitable alternative roles, whether within the company or elsewhere.
For SMEs, this case serves as a stark reminder of the risks involved in not providing adequate support during redundancies. Here are some key things to keep in mind to avoid similar situations:
1. Explore all options: When faced with a need to reduce staff, it is important for employers to explore all possible options before resorting to redundancy. This includes looking for alternative roles within the company, considering job sharing or flexible working arrangements, and even offering voluntary redundancy packages. By exploring all options, employers can potentially avoid the need for redundancies altogether.
2. Follow fair selection criteria: In cases where redundancies are unavoidable, it is crucial to follow a fair and objective selection criteria. This means basing decisions on factors such as skills, performance, and qualifications, rather than personal biases. A transparent and well-documented selection process can help avoid any claims of unfair dismissal.
3. Provide support and guidance: Redundancies can be a difficult and uncertain time for employees, and it is important for employers to provide support and guidance throughout the process. This can include offering career counseling, CV writing workshops, or even providing references and networking opportunities to help employees find alternative roles.
4. Communicate effectively: Effective communication is key during a redundancy process. Employers should keep employees informed of any changes and decisions, and be transparent about the reasons for redundancies. This can help alleviate any anxieties and build trust with employees.
5. Consult with employees: Employers have a legal duty to consult with employees when planning redundancies. This means involving employees in the decision-making process and seeking their input and feedback. By involving employees, employers can potentially identify alternatives or mitigate the impact of redundancies.
In conclusion, the recent EAT case serves as a wake-up call for SMEs to take their responsibilities seriously when it comes to supporting employees during a redundancy process. By exploring all alternatives, following fair selection criteria, providing support and guidance, and communicating effectively with employees, employers can mitigate the risks of unfair dismissal claims and maintain a positive relationship with their workforce. Ultimately, treating employees with respect and compassion during a difficult time can go a long way in preserving a company’s reputation and success.
