Redundancy: Guidance for Employers on Following a Fair Procedure

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Continuing economic uncertainty presents employers with challenging employment decisions and on occasion the need to conduct redundancy exercises. A number of cases over the last couple of years have provided clarification in relation to a variety of issues relating to redundancy exercises. This DechertOnPoint provides a reminder of the basic procedure that an employer must follow to effect a fair redundancy, summarises recent cases on these procedures and highlights the key lessons to be drawn by employers in order to follow fair redundancy processes.

Effecting a Fair Dismissal by Reason of Redundancy

For a dismissal to be fair an employer must show that:

- the employee was dismissed for one of the five potentially fair reasons (redundancy, capability, conduct, illegality or some other substantial reason); and

- the employer acted reasonably in treating that reason as a sufficient reason for dismissing the employee.

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Published In: Administrative Agency Updates, Civil Rights Updates, Labor & Employment Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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