(Fulcrum Pharma (Europe) Ltd v Bonassera and another UKEAT/0198/10)
The Employment Appeals Tribunal has held that it is wrong for an employer to automatically decide that a pool, selected for redundancy, should only include the employee holding the position that it has decided to remove from its structure. In some circumstances, it will be appropriate to include more junior employees in the pool too!
Employers should consider the following factors:
- How different the two jobs are.
- The difference in remuneration between them.
- The relative length of service of the two employees.
- The qualifications of the employee in danger of redundancy.
- Whether or not there is a vacancy.
- Any other factors applying to the particular case.
The EAT commented that "a starting off point may be to determine within the consultation process whether the more senior employee would be prepared to consider the more junior role at the reduced salary"
The case illustrates that while employers have a fairly wide discretion with regards to who they include in the pool, if they cannot show they have given the issue proper consideration, any dismissal that follows may be unfair.
Read the case here
