Employers must engage in thorough consultation regarding the proposed pool for redundancy, especially when the pool consists of only one individual.
The case
In the case of Valimulla -v- Al-Khair Foundation, the claimant worked as a liaison officer for the North-West of England. Similar roles were held by other employees in different geographic areas. The need for liaison officers decreased nationwide during the pandemic.
The respondent placed the claimant at risk of redundancy in a pool of one, while the other liaison officers were not affected. Although three consultation meetings were held, there was no discussion about whether the pool selection was appropriate. The claimant was dismissed and subsequently claimed unfair dismissal.
The outcome
The Employment Tribunal (ET) initially ruled that the claimant's dismissal for redundancy was fair, accepting the respondent’s argument that the claimant was in a self-selecting pool of one. The ET found that the overall process was not flawed enough to be considered unfair.
However, the claimant appealed this decision. The Employment Appeal Tribunal (EAT) allowed the appeal, determining that the redundancy consultation needed to occur at a stage where it could make a difference. The respondent had failed to consult with the claimant about the selection pool. Additionally, the ET had not adequately assessed whether choosing a pool of one was reasonable in this situation.
As a result, the EAT substituted the original ruling with a finding of unfair dismissal on procedural grounds, specifically due to the lack of consultation regarding the redundancy pool.
Key takeaways for employers
- Consultation on pooling is crucial: Employers must consult with employees about the proposed pool for redundancy. This consultation should occur at a time when it can influence the decision-making process.
- Reasonableness of pool selection: Employers should carefully consider and justify the reasonableness of selecting a pool of one. This decision should be documented and communicated during consultations.
- Documentation & communication: Ensure all decisions and justifications regarding the redundancy pool are well documented. Clear communication with employees about these decisions is essential to avoid claims of unfair dismissal.
- Consultation process: The consultation process should be thorough and inclusive. Employees should have the opportunity to discuss and challenge the proposed redundancy pool.
- Procedural fairness: Procedural fairness is key. Failure to consult appropriately about the redundancy pool can lead to findings of unfair dismissal, even if the redundancy itself is substantively justified.
By following these points, employers can better navigate the redundancy process and reduce the risk of successful unfair dismissal claims.
