Legal Updates

Employees ''should be warned '' over possible redundancy

Date:  07 Aug 2008

Employers have been warned not to act hastily over staff redundancies, especially where senior management staff are concerned.

Leading employment lawyer Stephen Jackson says business owners must consider whether the removal of manager can be justified on performance grounds.

He suggests that it is necessary to issue preliminary warnings over under-achievement prior to any more drastic action being taken, clarifying the employee''s position within the firm, reports Wales.co.uk.

Not only should an employer should follow legal disciplinary procedures when making a dismissal, but they should also observe an overriding principal of fairness, he adds.

Expanding his point, Mr Jackson continues: "In the case of redundancy, this includes entering into a proper period of consultation, fairly selecting an employee for redundancy – which extends to identifying a reasonably constituted pool of potential candidates – and a proper consideration of alternative employment.

"While it is possible to dismiss a senior executive fairly, employers should avoid acting hastily or without first taking legal advice, as the fallout is potentially time-consuming, demoralising and very expensive."

According to a recent study conducted by the Chartered Management Institute, the number of senior managers made redundant in the UK more than doubled in the last 12 months.

Employers should beware of unfair dismissal claims – with fines of up to £72,900 possible.

Where discrimination can be proved by the employee concerned, compensation awards can be unlimited.

Lynne Burns is an employment law specialist working at Vizards Tweedie and dealing with all aspects of employment law

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