Legal News | 20.09.23

Redundancy: Outcome

Article 6 of 6

Where the consultation process leads an employer to decide that an employee will be made redundant, they should write to the employee to invite them to a meeting to confirm the outcome of the consultation. The letter should not indicate the decision that has been reached, but should include:

1. The reasons for the redundancy situation.
2. The basis on which the employee was provisionally selected (including the pool and selection criteria applied).
3. Any suggestions made by the employee to avoid redundancy and the employer’s response.
4. A reminder of the employee’s entitlement to be accompanied to the meeting by a colleague or trade union representative (Companion).

Outcome meeting

At the meeting, an employer must confirm that the employee has been selected for redundancy and provide the details of the employee’s redundancy package. The redundancy package may include:

1. Statutory Redundancy Payment (formula based on the employee’s age, length of service and gross weekly pay (capped);
2. payment for accrued but untaken holiday;
3. payment in lieu of notice; and
4. an ex-gratia payment.

The employee should be informed of their right to appeal against the decision and reminded that they are entitled to time off work to seek alternative employment.

A detailed note of the meeting should be taken, to evidence a fair process is being followed.

Dismissal letter

Following the meeting, a letter should be sent to the employee confirming the decision and their last date of employment. The letter should also confirm whether the employee will work their notice period, be placed on garden leave, or receive a payment in lieu of notice.

The calculations for the employee’s redundancy package should be included in the letter and it should note that the employee has the right to appeal, including the process and time limit for doing so.

Appeal

If the employee chooses to appeal, a further letter must be sent inviting them to an appeal meeting which, where possible, should be conducted by a different and/or more senior manager. The employee is also permitted to be accompanied by a Companion.

At the meeting, the employee should be allowed to explain why they think the redundancy process, or their selection was unfair. However, the appeal is not an opportunity for the employee to simply revisit the previous consultation.

Following the meeting, a letter confirming the outcome of the appeal should be sent to the employee, providing the reason(s) for the decision. The letter should confirm that the decision is final and there is no further right of appeal.

Other articles in this series:

Article 1: Restructuring and Redundancy – Preliminary Considerations 

Article 2: Redundancy – Pools, Selection Criteria and Alternative Vacancies 

Article 3: Redundancy – Collective Consultation

Article 4: Redundancy – Consultation

Article 5: Redundancy – Scoring

If you would like more specific advice on the redundancy process, or if you have any other queries, please contact:  01380 733300 | commercial@wansbroughs.com