8. Redundancy, reorganization, and transfers of undertakings

Abstract

This chapter discusses issues concerning a company threatened by hard times or stiff competition, which may need to sell part of its operation, dismiss some employees, and change the terms and conditions of work for other employees. It tackles these situations together both for the practical benefit of grouping issues that arise from similar factual settings and for the analytical coherence of dealing together with protections designed to balance worker interests in job security with the general economic interest in lean, efficient, and flexible enterprise. ‘Redundancy’ is a statutory concept for these purposes, not a common-sense one, and so it is first necessary to devote some time to its statutory definition, which can still cause problems 40 years after the original statutory coverage. The discussion then focuses on distinctions in how tribunals assess the fairness of redundancy dismissals as opposed to other dismissals caused by reorganization. Finally, the chapter addresses the implications of the transfer of undertakings, governed by the Transfer of Undertakings (Protection of Employment) Regulations 2006.