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Redundancy – when do you need to pool?

Published On: July 24th, 2023By

When you have more employees than roles available, you may need to ‘pool’ ‘at-risk’ employees to fairly decide who remains at risk of redundancy.

Be clear on the roles at risk – identifying which roles need to be pooled isn’t always as easy as it sounds. Do you have different job titles or job descriptions for the same roles, have job titles and job descriptions not kept up with the roles individuals are actually doing? This all needs to be considered.

Identify individuals carrying out the pooled roles – do a number of individuals interchange between different roles? In which case would it be reasonable to include those individuals within the pool?

Consider individuals at other sites – where individuals move around sites and all do the role that is at risk, consider whether each of those individuals needs to be pooled.

Bumping – bumping occurs when an ‘at-risk’ employee is retained in favour of an employee who isn’t at risk (usually as they have better skills for the retained role). While there is no obligation to bump, you need to consider whether it’s appropriate to do so and make a note of your thought process.

Consult – once you’ve decided on your pool, you’ll need to ensure that you discuss the pool with ‘at-risk’ individuals before going ahead and applying selection criteria. A fair redundancy process includes giving individuals the right to challenge the pool before scoring ‘at-risk’ individuals.

Get in touch if you need advice or support when planning or managing a redundancy situation. 

This update is accurate on the date it was published, but may be subject to change which may or may not be notified to you. This update is not to be taken as advice and you should seek advice if anything contained within affects you or your business.