Update on the Supreme Court Appeal: Fair redundancy consultation

The UK Supreme Court has refused permission to appeal in the case of ADP RPO UK Ltd v Haycocks, upholding the Court of Appeal’s decision.

Background

In 2020, ADP RPO UK Ltd, a recruitment outsourcing company, made Mr. Haycocks redundant following a selection process where he scored the lowest among 16 employees. The redundancy consultation process commenced after the scoring was completed. Mr. Haycocks was informed of his dismissal on 14 July 2020, with the final consultation meeting taking place that day. He was not made aware of his individual score until after the dismissal decision was communicated to him. Mr Haycocks appealed against the decision to dismiss him; however, his appeal upheld the employer’s decision.

Court of Appeal Decision

The Court of Appeal overturned the Employment Appeal Tribunal’s (EAT) decision. The EAT had previously held that a general workforce consultation was required for fairness in redundancy dismissals, even in non-unionised workplaces. The Court of Appeal clarified that such a general consultation is not mandatory in small-scale redundancies (i.e. fewer than 20 redundancies). It emphasised that the fairness of the consultation process should be assessed on a case-by-case basis, considering the specific facts and circumstances of each redundancy situation.

Supreme Court’s Refusal

The Supreme Court’s refusal to grant permission to appeal means that the Court of Appeal’s Judgment stands. This decision provides clarity on the scope of redundancy consultation obligations, particularly in small-scale redundancies and non-unionised settings.

Implications for Employers

Employers should note that while general workforce consultation is not required in small-scale redundancies, they must still ensure that the consultation process is meaningful and conducted at a stage when decisions are not yet finalised. Employees should be provided with adequate information and an opportunity to respond to the proposals.

Employers are encouraged to review their redundancy procedures to ensure compliance with these principles and to seek legal advice tailored to their specific circumstances.

Our specialist Employment team at Acuity Law can assist with any concerns or queries you may have in respect of your staff. Please drop us a line to discuss any employment or HR issues.