Don’t gamble on your selection criteria for redundancies

25th February 2019

Don’t gamble on your selection criteria for redundancies

Amendments to regulations, changes in customer demand or a new company strategy may all be circumstances in which a legitimate redundancy situation could occur. For Ladbrokes, a change to fixed-odds betting terminal regulations was the reported reason why they were looking to close a number of their stores and, consequently, make a number of employees redundant.

For a dismissal to be fair on the grounds of redundancy an employer must satisfy the legal definition of redundancy and complete a fair redundancy process.

What caused Ladbrokes to reach the headlines was the selection criteria which was reportedly being used to determine which employees would be made redundant. It was reported that employees were informed of an online test to be completed. The test being based on a number of factors including the number of customers the employee had persuaded to sign up to new online accounts.

Fair selection involves the fair application of objective selection criteria to a pool of employees. The selection criteria used in a redundancy process will often come under scrutiny by employees trying to determine why they have been selected for redundancy instead of fellow colleagues. The selection criteria reportedly used by Ladbrokes could lead to a hostile working environment with at risk employees competing against each other. Also the exercise led to bad press as employees were encouraging the public to gamble in an attempt to prevent them from being selected for redundancy. In addition, online tests need to be used with caution because of the risk of discrimination against employees with disabilities such as dyslexia or poor eyesight.

It is important to remember that following a fair procedure, redundancy procedure is of equal importance to satisfying the legal definition of redundancy. The application of an objective selection criteria to a pool of employees is just one aspect of a fair procedure which must be followed.

If you would like any assistance with how a redundancy procedure should be handled then our team would be happy to assist.


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