New law extends protection to certain employees during redundancy process
Sponsored feature | Jake Gransbury, solicitor, HCR Hewitsons
Current law
The current law gives employees on maternity leave, shared parental leave or adoption leave more protection over other employees who are also being considered in a redundancy process. Employees with this ‘priority protection’ must be offered alternative vacancies in the business, if they are available, in priority of other employees.
Legislative changes
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 (‘the Act’) came into force on July 24, 2023 and extends the current protections to a wider group of employees including:
- Employees who are in ‘a protected period of pregnancy’
- Employees who have recently suffered a miscarriage
- Maternity leave returners
- Adoption leave returners
- Shared parental leave returners.
It is still unclear how the Act will operate in practice, with further regulations set to come into force in 2024.
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Practical and commercial considerations for employers
Employers should now start thinking about the practical impact that the Act may have on their business and potential future redundancies, despite the specific regulations not yet being known.
The risks of failing to comply with the Act are high. Not providing the ‘priority protection’ correctly could lead to a redundancy dismissal being automatically unfair and potentially a claim for discrimination, for which compensation is uncapped.
Some of the key considerations and potential difficulties employers may face when dealing with a redundancy situation are:
- Employers will need to have systems in place to ensure vacancies are identified and offered to employees with priority protection. This is particularly relevant for group companies as the right to be offered a suitable alternative vacancy extends to vacancies at other companies in the group.
- During a redundancy process involving multiple employees with ‘priority protection’, a decision will need to be made as to whom any alternative roles should be offered to. Careful decision making will be required, and the suitability for the role will become relevant.
- Difficult situations may arise if a particularly high-performing employee needs to be made redundant in favour of an employee with priority status.
- The Act means a suitable offer of alternative employment must be made. This goes further than simply inviting an employee to apply for a job.
- It would be prudent for employers to ensure accurate recording is in place to detail which employees are on leave, and the type of leave that they are on.
- Advice should be taken in a redundancy process and training provided to HR and managers to ensure the Act and future regulations are followed correctly.
For more information, contact Jake Gransbury, solicitor, employment and immigration team on 01223 447403, 07584 015588 or jgransbury@hcrlaw.com.
Visit hcrlaw.com.
