FAQ/redundancy – how should UK employers choose the right selection pool?

One of the most important decisions in a redundancy process is how the selection pool is defined. Get that wrong, and the fairness of the dismissal can quickly be called into question. 

Define the pool too narrowly and employees may argue they were unfairly singled out. Define it too widely and employers risk including roles that are not genuinely at risk. Either way, it can lead to unfair dismissal claims, even where the redundancy situation itself is genuine.
The law does not prescribe how a selection pool must be defined. Instead, tribunals will look at whether the employer’s approach falls within the range of reasonable responses.

So what does that mean in practice? With the answer, on line from Glasgow, Lesley Makin:

Lesley Makin: “There is no single ‘right’ pool. Employers have a degree of discretion, but they need to be able to justify the approach they take. In practice, that usually means identifying the roles affected by the redundancy situation and considering which employees are doing the same or similar work. Those employees will often form the pool. Employers should also look at whether roles are interchangeable, whether employees can cover each other’s work, and how the business is structured.”

Joe Glavina: “So once an employer has identified a pool, can it move straight to selection?”

Lesley Makin: “No, not usually. As part of a fair process, employers should consult with affected employees about the proposed pool. That gives individuals the opportunity to challenge the scope of the pool and suggest alternatives. Failing to do that can create risk, particularly if the pool is later found to be too narrow or not properly justified.”

Joe Glavina: “And what about pools of one – are they ever acceptable?”

Lesley Makin: “They can be, but they carry more risk. A pool of one is more likely to be scrutinised by a tribunal, so the employer needs a clear and credible rationale. For example, where a role is genuinely unique and there is no real interchangeability with others, a pool of one may be reasonable. But if there are other employees doing similar work, excluding them from the pool may be difficult to justify.”

We have added this programme to our FAQs series of programmes. To find them, just type ‘FAQ/redundancy’ into the search engine on the Out-Law website.