Category Archives: Redundancy

Collective redundancy: Government guidance and HR1 form

The Government has published an updated HR1 form (available here) for employers to notify the Secretary of State of their intention to make 20 or more employees redundant within a period of 90 days or less. The new form is intended to be shorter and more straightforward to complete. The Government has also updated the…
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Case update (3):  Redundancy – Careful of selection by interview

waiting for interview
Summary:  Can an employer reasonably rely on just an interview process when considering redundant employees for ‘alternative employment’ which is essentially the same as their current role? No, says the EAT in Gwynedd Council v Barrett, available here. Facts:  The employer, Gwynedd Council, decided to implement a reorganisation of the schools in the local area.…
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Case update (4): Redundancy – to bump or not to bump?

Summary:  In a redundancy situation, must an employee specifically raise ‘bumping’ before an employer needs to consider it? No, held the Employment Appeal Tribunal (EAT) in Mirab v Mentor Graphics (UK) Ltd, available here. Background:  Bumping occurs when an employee whose role is redundant is redeployed into another role, and the displaced occupier of that…
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Case Update (2): Disability discrimination and redundancy

Summary:  If an employee’s long term sickness absence shows lack of need for the role and the employer make that role redundant, does this amount to disability discrimination? No, says the EAT in Charlesworth –v- Dransfields Engineering Services Ltd available here.   Facts:  Mr Charlesworth, the employee, managed one of four branches of the employer’s…
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Case update (2): Redundancy – reliance on mobility clauses

Summary: Can a contractual mobility clause enable an employer to avoid dismissing employees for redundancy? Yes, but only if the terms of the mobility clause and the manner in which the employer operates the clause are reasonable. The EAT’s decision in Kellogg Brown & Root (UK) Ltd v Fitton, available here, is a useful illustration…
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Case update (2): Redundancy – (un)reasonable consultation

Summary: Can a redundancy consultation which is highly “insensitive and perfunctory” be reasonable overall and enable a fair dismissal? No, says the EAT in Thomas v BNP Paribas Real Estate Advisory and Property Management UK Ltd available here. Facts: The employee, Mr Thomas, was first employed by the employer, BNP Paribas, in 1972. In 2004…
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Government reforms (2): Budget 2016 news

The key announcements for employers from Chancellor George Osborne’s budget are: Termination payments over £30,000:  compulsory employers national insurance contributions (NICs) will be introduced from April 2018 on such payments. These payments are already subject to income tax.  However the additional payment of employers national insurance is expected to cost employers almost £500m a year…
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Blog: Santa Claus and the PILON clause

PILON
Santa Claus has come to the end of another round of present distributing. His task is becoming harder because of the number of log burners replacing fireplaces so he is in a bad mood. This is compounded by the fact he is staring at a plate of lettuce and a glass of tap water as…
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Collective consultation – an update

What do we already know? We updated you in our May 2015 Newsletter Case update (1): Collective consultation – big decision time on the Woolworths case (USDAW and another v WW Realisation 1 Ltd (in liquidation) and others) and that the CJEU had confirmed that collective consultation is not triggered whenever planned redundancies, or changes…
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Case update (3): Collective consultation – indirect redundancy

Summary: Does “redundancy” for the purpose of EU collective consultation laws include resignations in response to the employer making significant detrimental changes to the employee’s employment contract? Yes, this is ‘indirect redundancy’ says the CJEU in Pujante Rivera v Gestora Clubs Dir SL and another available here. Facts: Between 16 and 26 September 2013, Gestora…
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