Is the redundancy landscape changing?

A number of recent cases before the Employment Court have indicated an employer now potentially faces greater hurdles when justifying a dismissal for redundancy. Earlier this year the Employment Court released a decision in the Totara Hills Farm case^[1] where the court found that if a redundancy is challenged by the employee, the employer cannot simply say there was a genuine business reason for the redundancy without the court examining the merits of the claim and the employer’s assertion that it had genuine business reasons. The court also emphasised that an employer’s obligations of good faith should encompass redeployment. It also found that a fair and reasonable employer would have done more than offer the employee the opportunity to apply for another position. Employers need to be careful about the business case they advance to justify a redundancy. The Employment Court will carefully examine the evidence and, if not in agreement with the employer, may decide the redundancy was not justified.