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6 November 2013

New ACAS guidance on redundancies

ACAS has issued new guidance for businesses on handling small-scale redundancies, to assist businesses that are proposing to make fewer than 20 people redundant.

Following a fair procedure when making redundancies is essential for employers in order to avoid potential claims for unfair dismissal.  An employment tribunal will not usually look into the business rationale for making redundancies, but it will carefully examine the process followed by an employer in order to ensure that redundancy dismissals were achieved in a fair manner.

The new ACAS guidance is a step-by-step guide on how to manage a redundancy procedure, including suggestions for alternatives to redundancies and planning a framework in advance of starting the process.  It also provides useful guidance on selection criteria and carrying out appropriate consultation with affected employees, with case study scenarios and frequently asked questions.

Separate guidance was published by ACAS earlier this year on the process for managing collective redundancies (affecting 20 or more employees).

The new guidance on small-scale redundancies is available on the ACAS website.