In our latest guest blog, South Yorkshire Based Ian Clay, Employment Law solicitor at Walker & Co, outlines one of his recent Employment disputes cases

The writer recently assisted a company with employment law issues, assisting them to  avoid a possible claim in the employment tribunal, the circumstances of which readers of this blog may find of interest.
Fortunately the company, which employs 20 staff, had taken two prior steps to protect its position:
Firstly the company had invested in professionally written contracts and a staff handbook.
Secondly, the company had legal expenses insurance which pays for any legal costs, including awards made against it at a hearing, in the event of an employment  dispute. In this case no claim was lodged but the company’s approach to the matter was in part guided by the fact that it knew it had this insurance cover in place.
The issue arose when the company won a major new business order and went through a reorganisation. Ironically the net result of this was the discovery that one role was superfluous and could be dispensed with. The advice to the company was to confirm that this was a genuine redundancy situation; a restructuring had resulted in lower demand for people despite the increase in orders. The increased profitability would improve the long term position of the company and with it the employment prospects of the remaining staff.
An initial letter was sent to all staff which invited them to a meeting. At the meeting the company’s situation was explained, this was confirmed in a follow up letter, which also sought volunteers for redundancy.
Acting on advice, the company then identified 6 members of staff who performed similar roles, the company having identified these roles as potentially offering a saving. These staff members were written to, the letter stating that their roles had been identified as being potentially at risk of redundancy and inviting them to individual meetings with their line manager. The position regarding the possible redundancy of their role was explained and they were each given a copy of the criteria to be used in assessing which person was to be made redundant. The criteria included such measures as absence in the last 2 years, length of service and professional qualifications.
Each of the 6 staff were then interviewed and given their scores. All were asked to comment on their scores. Although it made no difference to the decision, it was found that 1 member of staff had been marked absent due to illness rather than holiday on a particular day and his score was amended accordingly. All 6 staff were told that there had been no volunteers for redundancy anywhere in the company. In 5 cases the staff were informed that their employment was safe. In the other case, the person was informed that he was to be made redundant. The outcomes were confirmed in writing.
The company undertook to check there were no alternative roles, but as none were available, the member of staff received a formal notice of redundancy, including a breakdown of how his redundancy payment had been calculated and providing him with his statutory notice period. Care was taken to ensure that accrued holiday entitlement had been calculated to date of termination and the appropriate payment made.
The member of staff appealed on the following grounds:

• The selection criteria had been unfair
• The selection criteria had been unfairly applied
• The process had been unfair
• He had never been provided with a contract
• A member of staff had been made redundant years ago and received an enhanced payment.
• The appeal was heard by the director of the company and was dismissed, the decision being confirmed in writing. The member of staff has now left.

The key factors in the company having peace of mind are as follows:

• This was a genuine redundancy exercise
• The criteria used to assess the relevant staff were all objective, the scores arrived at were all done so objectively using facts, not opinions
• Volunteers for redundancy were sought from across the workforce and consideration was given to alternative roles
• The right of appeal was given and the appeal was heard by someone who had not played a part in the selection process and who was senior to the original decision maker
• The company had a copy of the member of staff’s signed contract, which referred to the staff handbook. In turn the staff handbook confirmed the entitlements to statutory redundancy pay and notice only
• The company also had a record of the staff member confirming he had read and understood the handbook
• The notes of both the original individual meeting and the appeal reflected the confirmation from the staff member that he had chosen not to be accompanied at the meetings and was happy to proceed. He had not contested the accuracy of these minutes, having been sent copies after each meeting.
• The above left the staff member with no grounds to appeal.

In summary, the company had protected itself by investing in written contracts and procedures, and in seeking legal advice before acting rather than after a problem had arisen. As a rough estimate, this saved the company approximately £10,000 in legal costs and in possible awards made against it.
For advice on employment law issues, contact Ian Clay at Walker & Co 01709 817112 ian@walkersolicitors.co.uk
Visit the website: www.walkersolicitors.co.uk