What is meaningful redundancy consultation?

When running a redundancy process, you are required to conduct meaningful consultation. But what is meaningful redundancy consultation? ACAS says the following should be discussed in any redundancy situation: • the changes that are needed, what you plan to do, and why • ways to avoid or make fewer redundancies • the skills and experience needed for the future • the criteria for selecting employees for redundancy • any concerns employees may have • how you can support and arrange time off for affected employees, for example to update their CVs and get training The more you can be shown to have listened to an employee’s concerns and considered any points that have been raised, the more likely it is to be considered meaningful redundancy consultation. Keeping accurate records of the consultation meetings will help you to demonstrate this. Read our blog on alternatives to redundancy for more information. Fixed term contracts and redundancy A recent case at the Employment Appeal Tribunal (EAT) has found that a fixed term employee who had been made redundant was unfairly dismissed due to a lack of proper consultation and arbitrary selection criteria. A common misconception is that the end of a fixed term contract is not a dismissal. But as Gov.uk states, there needs to be a fair reason for the end of a fixed term contract. Where the position is being eliminated, and the role holder has more than 2 years service, this may be a redundancy situation. Meaningful redundancy consultation would therefore need to take place. Mogane v Bradford Teaching Hospital NHS Foundation Trust. In this case, Mrs Mogane (the claimant) had been employed by Bradford Teaching Hospital NHS Foundation Trust (the employer) on a series of fixed term contracts (FTC) as a Band 6 nurse since 2016. Due to financial pressures, the Employer decided to make redundancies shortly before the fixed term contract was to expire. Two employees, both in the same situation, were invited to attend a meeting and the Claimant subsequently dismissed on the grounds of redundancy. Mrs Mogane was offered a demotion to band 5 as an alternative but this was refused as it was not regarded as suitable alternative employment. The sole reason why Mrs Mogane was dismissed as opposed to the other colleague on a Fixed Term Contract was that her contract expired first. The EAT said that this was not a fair reason for dismissal and found in favour of the Claimant. The EAT found that no meaningful consultation had taken place prior to the Claimant being chosen for redundancy. They stated that “the formative stage of a redundancy process is where consultation ought to take place” In this case, the decision the EAT found that the claimant had effectively been selected for redundancy before the decision was confimed. Secondly, the EAT said that the other band 6 nurse should have been placed in the same selection pool as the Claimant. As the only reason that the Claimant was made redundant was the earlier expiry of her FTC was was held to be arbitrary and unreasonable. The EAT concluded that the “absence of meaningful consultation at a stage when the employee had the potential to impact the decision” was indicative of an unfair process. What can we learn from this case as to how meaningful redundancy consultation should take place? This decision gives employers clarity as to what should be done to make redundancy consultation meaningful. 1. Employers should carry out effective consultation BEFORE a decision is made as to who should be made redundant. 2. More than one selection criteria should be used where possible. 3. Where an employee has more than 2 years service, redundancy consultation processes should be used for anyone on a fixed term contract that isn’t being renewed. Need help with your redundancy situation? Redundancy processes can be difficult. Instead of struggling alone, get the professionals to help you. The team at Cornerstone Resources are experienced in managing individual and collective consultation processes. Call us on 0161 647 7990 for more information on how we can help you. Share this article PREVIOUS ARTICLE Book a FREE 30 minute consultation with Cornerstone Resources Schedule Call

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