Redundancy Selection Pools

Two Employment Appeal Tribunal (EAT) decisions have confirmed that it is not always unfair to choose a redundancy pool that is the same size as the number of redundancies being made. However, a business should only choose this option if there are strong reasons for doing so and it should remain wary of overstating the commercial risks of a wider pool.

In the first case, the EAT held that it was fair for a book distributor to use a selection pool of one employee where it was ceasing its operations in China and the claimant was the only employee who had been sent to China. However, in the second case, the EAT held that a redundancy dismissal was unfair where a selection pool of just one employee (a pension scheme actuary) was also used by the employer.

This checklist sets out the key issues a business should consider when drawing up the pool of employees from which it will make its selection for redundancy.

For further information please contact our Employment Law Team.

 

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