How can I avoid making an unfair dismissal when downsizing?

Making people redundant at your organisation when team members are about to go on parental leave? It’s important to handle downsizing carefully to avoid discrimination and unfair dismissal.

Alternatives to Redundancy

If the reason for downsizing includes things such as cost-cutting, you may wish to consider alternatives to redundancy. For example, try reducing the hours of members on your team, considering a job share arrangement or salary freeze/benefit review are all possible if not palatable alternatives. You may want to consider these as part of your consultation exercise.

Redundancy and New-Parent Leave

It is ideal to be cautious about a pregnant team member. There are special dispensations for people whose jobs are made redundant when on new-parent leave. Whilst the team member may not yet have embarked on their period of parental leave, being cautious about the situation is always a wise choice.

Fair selection for redundancy is likely to be your main concern. You can’t use pregnancy as a reason for redundancy. To do so would be sex discrimination. However, you should be wary when applying selection criteria such as absence. Be careful to ensure that any period of absence related to pregnancy (e.g. illnesses or time off for pregnancy-related appointments) is discounted to avoid any sexual discrimination or unfair dismissal claims.

Follow Statutory Guidelines for Everyone

There is no need to make special allowances in the consultation process as long as you follow statutory guidelines for all team members. It is good practice to hold consultation meetings at reasonable times (as you would with non-pregnant employees), particularly if any member of your team works flexible hours.

There are special provisions made to people on maternity leave if their role is selected for redundancy. You will need to offer a member of staff on maternity leave any suitable alternative employment. Offer them any role within your company they are skilled for. You need to do that even if there is someone else within the company that would be better skilled for the job.

Plan Carefully

Maternity issues aside, remember to plan the process you are going to follow carefully. Include a thorough consultation process allowing staff to suggest alternatives and ask questions; fair selection criteria to avoid any discrimination claims; consider the possible scope for re-deployment within the business and help finding other work, including time for interviews; and finally don’t forget to follow any appeals procedure.

For further information, check the ACAS redundancy handling information and the CIPD website for up-to-date information.