Redundancy
There are two key selection decisions an employer must make in order to comply with employment law. The employer has to decide whether it intends or has stopped doing business altogether or in a particular place, or if its need for employees in a particular area has reduced or stopped or is expected to do so. If the answer is yes, then you have a genuine redundancy scenario. You then need to consider how you will select your employees for redundancy in accordance with the correct employment law procedures.
The criteria for selection should be fair, objective and consistently applied. Sometimes, selection criteria will be easy and obvious. For example, if you are closing a particular branch or office, then all of the employees in that place should be potential candidates for redundancy. However, many employers will need to use different criteria, as they will be reducing numbers of employees doing certain types of work. In these cases, employers may consider using criteria such as performance, profitability, relevant skills and experience, in order to retain the skill sets necessary to manage the business effectively and profitably. Careful thought should be used in selecting these criteria. For example, if the criteria is performance, profitability and experience, it may leave you open to claims of age discrimination (for including experience) or it may give rise to a sex discrimination claim if you chose a female employee without taking account of the fact that a period of maternity leave has lowered her profitability. A sensible employer will choose the selection criteria carefully to ensure transparency and fairness but will also take care to ensure that the way it is applied is also open and fair.
Once you have used the selection criteria to assess the employees in the relevant area you need to consult the affected employees.