Can voluntary redundancy also amount to unfair dismissal?

Voluntary redundancy can be a tricky situation for both employees and employers, and it is important to understand the legal implications of such a decision. While it may seem like a simple solution to a redundancy situation, it is crucial to ensure that the process is carried out fairly and lawfully to avoid any potential claims of unfair dismissal.

The case of Ms N White v HC-One Oval highlights the potential risks of unfair dismissal claims arising from voluntary redundancies and illustrates the key points about voluntary redundancy and dismissal, including the relevance of the background to the request for redundancy and the importance of following a fair process.

The  case involved a redundancy exercise in which Ms White requested to be made redundant. However, she later claimed that her request for redundancy was due to her employer effectively recruiting a new receptionist shortly before announcing the redundancy programme with a view to replacing her and the other existing receptionist.

The question at issue was whether Ms White's claim of unfair dismissal had no reasonable prospects of success, given that she had volunteered for redundancy. The Employment Appeal Tribunal held that it was wrong to strike out her claim for unfair dismissal, as the circumstances of her request for redundancy raised issues that would need to be considered at a full hearing.

The tribunal found that just because an employee has volunteered for redundancy does not necessarily mean that there are no grounds upon which a claim for unfair dismissal may be brought. The background to the request for voluntary redundancy may be relevant to the fairness of the dismissal, and there may be a factual dispute between the parties that would need to be determined.

It is essential to note that a voluntary redundancy may amount to a dismissal, and it is not always a fair dismissal by nature. The employer must follow a fair process, and the redundancy must be genuine for the dismissal to be lawful. In the case of Ms White, it was directed that a full hearing of the merits of the case should take place before an employment tribunal, as the factual dispute between the parties could not be resolved without a full hearing.

It is crucial to ensure that the process of voluntary redundancy is carried out fairly and lawfully to avoid potential claims of unfair dismissal. Some of the key points to keep in mind include:

• Voluntary redundancy may amount to a dismissal: employees who volunteer for redundancy are still entitled to certain employment rights and protections, including the right not to be unfairly dismissed.
• Background to the request for redundancy may be relevant: the reasons for the request for voluntary redundancy may be relevant to the fairness of the dismissal, and there may be a factual dispute between the parties that would need to be determined.
• A genuine redundancy and a fair process must be followed: for a dismissal to be lawful, the redundancy must be genuine, and the employer must follow a fair process. This includes consulting with employees, selecting a fair pool for redundancy, and considering alternatives to redundancy.
• Just because an employee has volunteered for redundancy does not mean that the dismissal is fair. The fairness of the dismissal will depend on the specific circumstances of the case.

Voluntary redundancy can be a complicated situation, and it is crucial to ensure that the process is carried out fairly and lawfully. Employers must follow a fair process, and the redundancy must be genuine for the dismissal to be lawful. The case of Ms N White v HC-One Oval highlights the potential risks of unfair dismissal claims arising from voluntary redundancies, and it is essential to seek legal advice if you are unsure about the legality of a redundancy situation.