The Employment Relations Authority has ordered an employer to pay an employee $10,000 after failing to properly consider redeployment options during a redundancy process.

The employer restructured a section of its business, leading to the employee’s role becoming redundant. As part of the redundancy process, the employee was invited to apply for other jobs with the employer.

The employee applied for two roles with the employer, one more senior and one more junior. The employee was not offered either role, being described as unqualified for the senior role, and over-qualified for the junior role.

The employer then left it up to the employee to search for other opportunities within the large company by themselves.

The Authority held that during a redundancy process, employers must act fairly and reasonably. It explained that the junior position should have been explored more thoroughly with the employee.

Due to the large size of the employer, other prospects in the company should also have been explored by the employer, rather than leaving the employee to do it themselves.

The employer was ordered to pay the employee $10,000 compensation for the unjustified disadvantage.

Despite redundancies being for genuine reasons, employers regularly fail to carry out all aspects of the process correctly, leading to expensive grievances.

If you are considering a redundancy situation, or think your employer has not followed the process correctly, it is wise to speak with a professional experienced in the area.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-priced Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.

Alan Knowsley
Employment Lawyer