No requirement to hold ‘general workforce consultation’ when making small scale redundancies
Wednesday 27th November 2024
It has long been established that collective consultation is only required when an employer is proposing to make 20 or more employees redundant within a 90-day period. Otherwise, only individual consultation with employees is mandatory for a fair process. This well-established rule was thrown into question in the case of Haycocks v. ADP RPO UK Ltd.
Background
The Covid pandemic led to diminished demand for ADP’s (the Respondent) services, resulting in them carrying out a redundancy process with employees.
After applying a scoring matrix and holding various individual consultation meetings, it was decided that the Claimant (C) would be made redundant.
Employment Tribunal (ET) Decision
C brought a claim to the ET for unfair dismissal on the grounds that for the decision to make him redundant was biased, and the scoring matrix applied was not transparent.
His claim was dismissed as he failed to show that he should have received higher marks or that his colleagues should have received lower marks, and there was no forthcoming evidence that it was unfair.
Employment Appeal Tribunal (EAT) Decision
C appealed the ET’s decision, arguing that the consultation process was flawed because his employer had already decided to dismiss him.
The EAT upheld the appeal, finding that a general workforce consultation was not held at the formative stage, which could be grounds for unfair dismissal unless the employer could justify not including such stage.
Court of Appeal (COA) Decision
ADP appealed the EAT’s decision, questioning the legitimacy of the ruling on the requirement of a general workforce consultation.
The COA upheld the appeal, rejecting the EAT’s proposition that employers must hold a general workforce consultation for small-scale redundancies. The COA made clear that whilst there should still be discussion with individuals about matters that might impact the risk of dismissal or its consequences (whether that applies to an individual or the entire workforce), that can be done on an individual basis where collective consultation isn’t required and does not necessitate general workforce consultation.
Comment
Whilst this decision will come as a relief to employers, it is important to remember to engage in meaningful consultation with employees during any redundancy process. Consultation must be carried out with an open mind, ahead of any decision being taken.
Please contact a member of the employment team if you require any further guidance.
