Where there is a business case for Redundancies, employers have to follow proper procedures - by law. That includes a fair process for selection, as well as a right for employees to appeal against selection, and make a case to keep their job. Unfair Dismissal compensation can be high where job prospects are poor, since it is intended to compensate staff for loss of earnings.
Where there are Collective Redundancies affecting larger numbers of employees, the law goes further. Employers are obliged to consult with staff about ways to avoid the redundancies for a 90-day period. Paying people off instead is not good enough - the point is to have the consultation, because it's only by engaging with employees and taking on board what they have to say that it is possible for this to make a difference. The tribunals have been crystal clear about this - and the cost to any employer who does not comply could be up to 90 days pay for each member of staff affected by Redundancy, imposed as a penalty (on top of compensation for loss of earnings)." Samantha is a Principal Lawyer (Partner) in the London Employment Department.