Definition
The objective and measurable factors used by an employer to determine which employees will be made redundant from a pool of employees in similar roles, ensuring the selection process is fair and non-discriminatory.
UK Context
UK employment tribunals assess redundancy selection as part of determining whether a dismissal was fair under section 98(4) of the Employment Rights Act 1996. The ACAS Code of Practice on Discipline and Grievance does not directly cover redundancy, but ACAS provides detailed guidance on fair redundancy processes. Selection criteria must not directly or indirectly discriminate on the basis of protected characteristics under the Equality Act 2010.
Best Practices
- Use a combination of objective, measurable criteria rather than relying on a single factor
- Consult with employees and representatives about the proposed criteria before applying them
- Remove disability-related and pregnancy-related absence from attendance records used in scoring
- Apply criteria consistently across the entire selection pool, with at least two managers involved in scoring
- Allow employees to see their scores and challenge them through an appeal process
Frequently Asked Questions
Is last in, first out (LIFO) a fair selection criterion?
LIFO is not recommended as a sole criterion because it can indirectly discriminate on the basis of age. However, it can be used as one factor among several in a balanced selection matrix. Employment tribunals have accepted LIFO as part of a broader set of criteria where it is applied alongside skills, performance, and other factors.
What is a redundancy selection pool?
A selection pool is the group of employees from which those to be made redundant will be selected. It should include all employees doing the same or similar work or whose roles are interchangeable. The pool must be defined rationally and objectively, and employers should be able to explain why certain employees are included or excluded.
Can an employee challenge their redundancy selection score?
Yes, best practice is to share individual scores with affected employees and allow them to challenge any scores they believe are inaccurate. This forms part of the individual consultation process. An employee who believes their selection was unfair can bring an unfair dismissal claim at the employment tribunal.