Redundancy Selection Criteria

A redundancy pool consists of all employees whose positions are potentially affected by the proposed changes to the business. Employers must first identify the correct pool of employees before applying selection criteria.

The pool should include all employees doing similar work or whose roles are affected by the restructuring. Employers cannot artificially narrow the pool to exclude certain employees they want to retain, nor can they create separate pools to achieve predetermined outcomes.

For example, if a company is reducing its sales team from ten to six people, all ten sales staff should typically be in the redundancy pool. The employer cannot decide in advance that certain senior salespeople are 'safe' and only put junior staff at risk.

Once the pool is established, selection criteria must be developed and applied fairly to determine which specific positions within the pool will be made redundant. This process requires genuine consultation with affected employees and their representatives.

Selection criteria must be objective, measurable, and directly relevant to the business needs driving the redundancy. Common fair criteria include skills and qualifications, experience, performance records, disciplinary history, and length of service.

Criteria should be specific enough that different managers would reach similar conclusions when applying them. Vague criteria like 'attitude' or 'cultural fit' are problematic because they're too subjective and can mask discriminatory decision-making.

The criteria must also be consistently weighted and applied. If performance is worth 40% of the assessment, this weighting should apply equally to all employees in the pool. Employers cannot change the criteria or their application partway through the process.

Examples of potentially unfair criteria include personal circumstances (such as having a working spouse), union membership, previous grievances raised against the employer, or protected characteristics like age, gender, or ethnicity. Using such criteria could constitute discrimination and make the dismissal unjustified.

Employers must consult meaningfully with affected employees about both the proposed redundancy and the selection criteria to be used. This consultation must occur before final decisions are made, not as a mere formality after selections have been decided.

During consultation, employers should explain the business reasons for redundancy, the proposed selection criteria, how the criteria will be applied, and the timeline for the process. Employees must have a genuine opportunity to provide feedback and suggest alternatives.

Employees can challenge proposed criteria if they believe them to be unfair, irrelevant, or discriminatory. They can also provide information about their own skills, experience, and performance that should be considered in the assessment process.

The consultation period must be reasonable - typically several weeks - to allow employees to properly consider the proposals and seek advice. Rushing through consultation or ignoring employee feedback can make the entire redundancy process unfair.

If employees are represented by a union, the employer must also consult with union representatives about the redundancy process and selection criteria.

Once criteria are established, they must be applied consistently and objectively to all employees in the redundancy pool. This typically involves scoring each employee against each criterion and ranking them accordingly.

The assessment should be based on documented evidence rather than subjective impressions. Performance reviews, training records, qualifications, and measurable achievements should inform the scoring process rather than manager opinions or assumptions.

Employers should involve multiple managers in the assessment process where possible to reduce bias and ensure consistency. The scoring should be documented and transparent, with clear reasons for how each employee was assessed against each criterion.

If the process reveals that employees have similar scores, employers may need to consider additional factors or look for alternative solutions like voluntary redundancy or redeployment opportunities.

Employees should be informed of their assessment results and given an opportunity to respond before final decisions are made. This allows them to correct any factual errors or provide additional relevant information.

If you believe you've been unfairly selected for redundancy, you may be able to challenge the decision through a personal grievance claim for unjustified dismissal. This must be raised within 90 days of your dismissal.

Common grounds for challenge include discriminatory selection criteria, failure to properly consult, inconsistent application of criteria, or using the redundancy process to dismiss employees for other reasons like poor performance or misconduct.

To succeed in a challenge, you'll need evidence showing the selection process was flawed. This might include documentation of the criteria used, evidence of how they were applied to you versus other employees, and records of the consultation process.

Successful challenges can result in compensation for lost wages, hurt and humiliation, and potentially reinstatement to your position if the redundancy is found to be unjustified. However, if the redundancy was genuine but the process unfair, reinstatement may not be possible.

It's important to seek legal advice quickly if you believe you've been unfairly selected, as gathering evidence and meeting the 90-day deadline requires prompt action.

Before finalising redundancy selections, employers should consider whether there are alternatives that could avoid or minimise job losses. These alternatives should be explored during the consultation process.

Options might include voluntary redundancy, early retirement packages, reduced hours, temporary layoffs, redeployment to other roles, or retraining programs. Employees may also suggest cost-saving measures that could reduce the need for redundancies.

If suitable alternative employment exists elsewhere in the organisation, employers have an obligation to consider redeploying affected employees rather than making them redundant. This is particularly important for long-serving employees or those with transferable skills.

The consultation process should genuinely explore these alternatives rather than treating them as token considerations. Employees and their representatives may have valuable insights into potential solutions that management hasn't considered.

Even if alternatives aren't immediately obvious, the employer's willingness to explore options and consider employee suggestions can be crucial in demonstrating that the redundancy process was fair and genuine.

Proper documentation is essential throughout the redundancy selection process. Employers should maintain detailed records of the business case for redundancy, the development of selection criteria, consultation meetings, and the application of criteria to individual employees.

This documentation serves multiple purposes: it demonstrates that the process was fair and systematic, provides evidence if the decision is later challenged, and helps ensure consistency in how criteria are applied across different employees.

Key documents should include the initial business case, consultation meeting notes, employee feedback and responses, scoring matrices showing how criteria were applied, and records of any alternatives considered.

From an employee perspective, it's important to keep your own records of consultation meetings, any written communications about the redundancy process, and evidence of your performance, skills, and experience that should be considered in the selection process.

If you're facing redundancy, request copies of relevant documents including the selection criteria, your assessment scores, and information about how the criteria were applied to other employees in the pool.

You should consider seeking legal advice as soon as you become aware that redundancies are being considered, particularly if you're in the affected pool. Early advice can help you understand your rights and ensure you participate effectively in the consultation process.

Immediate legal advice is crucial if you believe the selection criteria are unfair, discriminatory, or being applied inconsistently. A lawyer can help you identify potential issues with the process and advise on how to raise concerns effectively.

If you've been selected for redundancy and believe the process was unfair, seek legal advice immediately. The 90-day deadline for raising a personal grievance is strict, and gathering evidence takes time.

Legal advice is also valuable if you're offered a settlement agreement or redundancy package. A lawyer can review the terms and advise whether they're fair, and help negotiate better terms if appropriate.

Don't wait until after you've been dismissed to seek advice. Early intervention can sometimes prevent an unfair redundancy or ensure you're better positioned to challenge it if necessary.