(Solution) CIPD Avado AC 3.2 (Email 6) Explain the legal requirements relating to redundancy

Solution

Email 6: 3.2 Legal Requirements for Redundancy Process

As you consider implementing the reorganisation within your directorate, it is essential to fully understand the legal requirements surrounding redundancy.

1. Identification of Reasons for Redundancy

Redundancy can be defined as situations where posts are no longer needed for one reason or another for instance closure of a business, downsizing or diminutive of the organization’s requirements for employees. As for redundancy, the most predominate act of law is the Trade Union and Labour Relations (Consolidation) Act of 1992, referred to as TULRCA. TULRCA 1992 provides clear guidance such as eligibility for redundancy and process pointing out that the reason for redundancy is must be valid, non-discriminatory, and objectively justified (‌Bakermckenzie, 2025).

2. Stages in the Process

The redundancy process involves several key stages:

Selection for Redundancy: This is because it is based on such factors as merit and fitness (skill, experience and performance). It must also not favour one party over the other, in other words it has to be impartial. Larger redundancy situations Applying this provision where the proposed dismissal relates to 20 or more employees, other regulations under TULRCA 1992 with regard to collective consultation with unions or employee representatives apply (‌Bakermckenzie, 2025).

Consultation: Employers have to consult the employees who will be affected or their representatives. These include detailing why redundancy is necessary, looking at options and potential solutions to this (like a transfer).

    Notice and Redundancy Pay: Proper notice should be provided to the employees before redundancy comes into operation depending on the years of service. They are also redeemable for redundancy and for this they are paid according to their age, contract duration, and weekly wages (Gov.Uk, 2024).

3. Information on Consultation Requirements

Consultation is a legal requirement under TULRCA 1992. Where 20 or more redundancies occur within a 90-day period,…

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