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Warning to employers using redundancy as a ‘cover up’
The Employment Appeal Tribunal (EAT) upheld a 25% uplift in compensation awarded against an employer using redundancy as a cover-up for other issues.
An employee was made redundant following a reorganisation. She’d raised a grievance during the process complaining that her role was not actually redundant as headcount was increasing and she was being deliberately side-lined by the new CEO. The EAT agreed saying the redundancy was a “sham”. They agreed with the tribunal’s decision to increase the compensation awarded against the employer by 25% – the employer had failed to comply with the ACAS Code of Practice on disciplinary and grievances which were the real issues behind the redundancy ‘cover up’.
“Can’t we just call it a redundancy?” – something we’re asked a lot! Tribunals like facts, notes, chronologies and understanding details. If you can’t evidence the redundancy is genuine the dismissal will be unfair and compensation increased by up to 25% due to the lack of transparency.
Take advice early – if an employee isn’t right for the role they’re doing early advice is vital. We can understand the real reason why that is the case and coach you through the correct process to minimise risk whilst achieving your intended aim – get in touch for our support.
This update is accurate on the date it was sent (28 July 2022), 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.