Redundancy remains one of the most frequent areas of HR advice requested by our clients, and with good reason.
It’s a complex process with real risks if not handled properly. And things have just become more complex!
Many employers assume that once a role is no longer required, the process is straightforward. However, a recent High Court decision in Helensburgh Coal v Bartley has made it clear this is no longer the case. Employers must now take a much broader approach to demonstrate that a redundancy is “genuine,” or risk facing unfair dismissal claims, costly compensation, and reputational damage.
What has changed?
Employers have always needed to consider redeployment, but the scope of this obligation has now broadened significantly. It is no longer enough to only review existing employee roles. Employers must also ask whether it would be reasonable to redeploy an affected employee by:
- Offering roles currently performed by contractors or labour hire workers – if external workers are carrying out tasks that the employee could reasonably perform, employers may need to consider insourcing that work back to their own staff.
- Restructuring the workforce or creating a new role – businesses should assess whether a position could be reshaped, combined, or newly created to make use of the employee’s existing skills, rather than defaulting to termination.
- Assessing whether the employee’s skills and experience could fit another position with minimal training – employers must evaluate the employee’s qualifications, transferable skills, and capacity to take on a different role, provided the adjustment required is reasonable and does not involve excessive retraining.
Why this matters
This decision raises the bar for employers and means redundancies cannot be treated as a simple “tick-the-box” process. Employers must take a strategic, well-documented approach, showing that redeployment options were genuinely considered and consultation was carried out. Failing to do so risks unfair dismissal claims, costly payouts, and lasting damage to workplace culture and reputation.
How we can help
Every redundancy situation is different, and what is “reasonable” will depend on your business circumstances. That’s why tailored advice is essential. We can support you by reviewing your redundancy processes, advising on redeployment considerations, preparing compliant documentation, guiding you on how to consult with employees lawfully and transparently, and providing in-meeting support to ensure the process runs smoothly.
Next steps
If you are considering redundancies or want to ensure your processes comply with these new requirements, talk to our Allan Hall HR team before taking any action. The risks of going it alone are now higher than ever! Our HR consultants can guide you through the process, minimise legal and reputational risks, and ensure your business remains compliant.
HR Support Centre Demo
We invite all our clients to explore our complimentary HR Support Centre, designed to help you navigate your employee obligations and stay updated on legislative changes. This valuable resource offers ready-to-use HR templates, best practice guidance, checklists, and access to a vast library of articles on compliance and employee management. Book in a free demo today.