NO one likes to think about redundancy, but in these difficult economic times, it is perhaps inevitable that jobs will go as companies are forced to cut back.

For employers, ensuring they are familiar with the formal process that needs to be undertaken when considering redundancy is vital.

Even if they believe they know the law, a recent case regarding the redundancy selection process means employers may need to look again at their procedures.

Employers must hold a fair consultation in their selection of people for redundancy.

This usually means having a points system against which employees are measured.

A recent Employment Appeal Tribunal (EAT) judgement looks set to alter how employers might have to share this information.

The case involved the selection of an employee for dismissal on grounds of redundancy.

The EAT found the employer, a printing company, had failed to conduct adequate or effective consultation with the employee by failing to provide him with an adequate explanation of why he had received lower scores than others.

At the appeal, the company argued that employers were not obliged to justify the scoring and said it was not generally required for an employer to produce individual assessments of employees and discuss those with them.

The employee’s barrister argued that in order to dismiss an employee for redundancy fairly, the employee consulted must be able to understand the basis upon which the decision is taken. They must be given sufficient information or explanation for why they have been marked down in a scoring exercise and be given the opportunity to challenge it.

Although the company’s scoring matrix had a column for justification/comment/ example of performance, no comments had been made and no evidence to support the scores, such as appraisals, was presented.

The EAT ruled that fair consultation in a redundancy exercise involves giving an employee an explanation for his scoring and a meaningful chance to comment.

The case highlights the importance during a redundancy consultation, particularly with subjective criteria, of providing sufficient and adequate information which employees can understand, and letting them argue their case.

Redundancy is a critical area of employment law so any business owners in doubt are advised to seek advice.

■ Paul Hargreaves is a specialist in employment law with BHP Law. He can be contacted on 0191-221-0898.