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How to use a redundancy selection pool

19 October 2020
How to use a redundancy selection pool

What is a redundancy selection pool?

A redundancy selection pool is a way of grouping employees, with similar roles, who are at risk of redundancy. Any employees selected for a redundancy selection pool must be done fairly and in no way discriminated against. It is important to document your selection criteria and process.

A redundancy selection pool is not relevant for a smaller business where only one employee in a specific function is being made redundant.

It is important to note, a redundancy selection pool relates to employees in the same or similar roles or employees across departments at a similar skill level. You may need a few, separate redundancy pools if you are planning on making multiple redundancies across the business (e.g. marketing, finance and IT).

If you have a recognised trade union, you should check and follow any agreements you may have with them about how selection pools are set up.

Consulting with employees or their representatives

Once you have a proposal on pooling and how the selection process will work it is important to consult with at-risk employees or their representatives.

It is important to be open and collaborative during the selection process. Naturally, it can be a stressful time for any at-risk employees and it is key that they understand the proposals and the reasons behind them and trust that it is fair.

Selecting from the redundancy pool

When selecting employees from the redundancy pool it must be done objectively. It is often advisable to create a scoring matrix to grade at-risk employees and compare their skills, experience and performance.

Selection criteria may include:

  • skills or experience;
  • relevant qualifications;
  • disciplinary record; and/or
  • appraisal ratings.

When processing employee data, businesses should ensure it is done in accordance with their data protection policy and employee privacy notice.

Establishing an appeals process

You should set up an appeals process for employees who feel they have been unfairly selected. This can reduce the chances of someone making a claim against you to an employment tribunal.

You should explain in your redundancy plans how someone can appeal. You might meet with employees face-to-face to listen to their concerns or ask them to write a letter or email explaining why they do not agree with your decision.

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