Redundancy: when consultation counts

Case: De Bank Haycocks v ADP RPO UK Ltd [2024] EWCA Civ 1291

This case clarifies a critical issue for HR professionals: What does a ‘fair’ consultation look like in small-scale redundancy exercises?

What happened

A recruitment consultant, Mr De Bank Haycocks, was part of a 16-person team serving one client. Following a 50% reduction in demand, the employer selected him (based on pre-consultation scoring) for redundancy. He was not told his scores until his appeal.

The EAT ruled the process unfair. The Court of Appeal disagreed.

Why did it disagree?

  • Fairness requires consultation before final decisions are made.
  • But ‘formative stage’ does not always mean before scoring begins.
  • A thorough appeal process can mitigate earlier flaws.

What should you do?

  • Notify employees that they are at risk before decisions are made.
  • Start consultation early and involve employees meaningfully.
  • Be transparent about scoring criteria and allow challenge.
  • Record discussions and decisions comprehensively.
  • Share criteria and individual scores, ideally during consultation.

Document that consultation was genuine, not just going through the motions.

However, a procedurally fair appeal can rescue minor defects in consultation, though you should not rely upon it.  Aim to get it right the first time.

Source: Judgment