Redundancy and restructuring in 2025 – four bits of case law, an Employment Rights Bill, and some updates on immigration.
The issue in this case was whether fair consultation requires general workforce consultation, even if statutory collective consultation requirements do not apply (as in this case where fewer than 20 employees were implicated in the redundancy). The Employment Appeal Tribunal (EAT) suggested that fair consultation does require general workforce consultation, but the Court of Appeal (CoA) overturned that decision.
Mr De Bank Haycocks, a recruiter at ADP RPO UK Ltd, was made redundant in July 2020 following a decline in recruitment demand due to the COVID-19 pandemic. His manager assessed and scored the team using redundancy selection criteria before the consultation process began, leading to his selection for redundancy. After being informed of his dismissal, Mr De Bank Haycocks appealed, arguing that his scores were too low, and that the redundancy process lacked proper consultation. His appeal was rejected, and he brough a claim for unfair dismissal.
The Employment Tribunal (ET) found that the redundancy process was fair. They stated that ADP had investigated his concerns, and that the claimant had failed to prove that his scores were unjust. However, the EAT overturned this decision, ruling that the dismissal was unfair due to the absence of meaningful consultation at an early stage. The EAT also said that workforce consultation should have taken place before the selection process, rather than just individual consultation afterward.
ADP challenged this ruling, and the CoA ultimately allowed the appeal, reinstating the ET’s original decision. They found that there was no requirement for general workforce consultation in relation to redundancy situations concerning less than 20 employees.
While this decision will come as a relief to employers, this case should also highlight the importance of considering the ‘workforce level’ type questions during individual consultation with employees, such as why the business has decided to make the redundancies, in addition to any questions raised about their personal circumstances.
The case also reminds us as HR practitioners that:
- redundancy consultation should start at a ‘formative’ stage where employers have an open mind and where employees still have a reasonable expectation of influencing the outcome; and
- appeals are a key part of any redundancy process. In an appeal it is best to look at the redundancy process in the whole. Appeals may cure procedural problems in any redundancy process carried out.
