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Now more than ever, employers are announcing redundancies and when doing so, they must comply with strict rules governing how they select employees for redundancy, the procedures to be followed when going through the process, and the requirement to treat employees fairly when going through those processes. Redundancy may arise due to an employer’s business circumstances being such that they no longer have a requirement for employees of a particular type, where they have too many employees of a particular type, or where a workplace is closing down.
Employers must consider the alternatives to redundancy including re-deployment within their establishment to avoid the loss of jobs – such that redundancy should be a last resort. Often where there is a claim against an employer for failing to adhere to the rules governing redundancy, a Compromise Agreement is reached in more favourable terms than the original redundancy package and this may serve to make the process quicker and cheaper than proceeding with a claim to the Tribunal.
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