Redundancy Selection Criteria: Employer's Guide

Fair selection criteria are essential for lawful redundancy. Poor criteria lead to successful unfair dismissal claims.

Why Selection Criteria Matter

Legal Requirements

For a fair redundancy:

• Selection pool must be appropriate
• Criteria must be objective
• Criteria must be applied fairly
• Process must be transparent

The Risk

Unfair selection means:

• Automatically unfair (discrimination) or unfair dismissal claims
• Compensation awards
• Reputational damage
• Remaining staff concerns

Types of Selection Criteria

Objective Criteria (Preferred)

Based on measurable, documented facts:

• Skills and qualifications
• Performance ratings
• Attendance records
• Disciplinary records
• Experience/competence in specific areas

Subjective Criteria (Risky)

Based on opinion or judgment:

• Attitude
• Flexibility
• Commitment
• Potential

Can be used if: Supported by documented evidence and applied consistently.

Common Fair Criteria

1. Skills, Experience, and Qualifications

What to measure:

• Relevant qualifications
• Technical skills
• Experience in specific areas
• Versatility (range of skills)

Evidence:

• Training records
• Qualification certificates
• Project history
• Skills assessments

2. Performance

What to measure:

• Performance review scores
• Achievement of targets
• Quality of work
• Client feedback

Evidence:

• Appraisal records
• Sales figures
• Quality metrics
• Documented feedback

3. Attendance/Absence Record

What to measure:

• Frequency of absence
• Total days absent
• Pattern of absence

Critical exclusions:

• Disability-related absence
• Pregnancy/maternity absence
• Absence for asserting statutory rights

4. Disciplinary Record

What to measure:

• Live warnings
• Types of issues
• Recency of warnings

Considerations:

• Only count "live" warnings
• Spent warnings shouldn't count
• Be consistent about what counts

5. Length of Service

Use carefully:

• Can indirectly discriminate against younger workers
• Should not be sole criterion
• May be one factor among several

Criteria to Avoid or Use Carefully

Automatically Unfair Criteria

Never select based on:

• Trade union membership/activities
• Pregnancy or maternity leave
• Asserting statutory rights
• Whistleblowing
• Part-time or fixed-term status
• Health and safety activities

Potentially Discriminatory Criteria

Be careful with:

• Age-related factors (length of service alone)
• Attendance (may affect disabled employees)
• Flexibility (may affect carers, women)
• Full-time preference (may affect women)
• Physical requirements (may affect disabled)

Creating a Selection Matrix

Step 1: Identify Criteria

Choose 4-6 criteria relevant to business needs:

• What skills does the business need going forward?
• What can be objectively measured?
• What evidence exists?

Step 2: Weight the Criteria

Assign importance to each criterion:

Criterion	Weighting
Skills/qualifications	30%
Performance	25%
Attendance	15%
Disciplinary	10%
Versatility	20%

Rationale: Weight reflects business needs.

Step 3: Create Scoring System

For each criterion, create clear scoring:

Example - Performance:

Score	Description
5	Exceptional - consistently exceeds targets
4	Good - regularly meets and sometimes exceeds
3	Satisfactory - meets expectations
2	Below average - occasionally falls short
1	Poor - frequently fails to meet standards

Step 4: Document Evidence Required

For each criterion, specify what evidence supports each score.

Sample Selection Matrix

Employee	Skills (30%)	Performance (25%)	Attendance (15%)	Disciplinary (10%)	Versatility (20%)	Total
A	4 (1.2)	5 (1.25)	4 (0.6)	5 (0.5)	3 (0.6)	4.15
B	3 (0.9)	3 (0.75)	5 (0.75)	5 (0.5)	4 (0.8)	3.70
C	5 (1.5)	4 (1.0)	3 (0.45)	4 (0.4)	2 (0.4)	3.75

Lowest scorer selected for redundancy (subject to appeals and consideration).

The Selection Process

Step 1: Define the Pool

Who is at risk of redundancy?

• Same or similar roles
• Interchangeable employees
• Consider entire business where appropriate

Step 2: Consult on Criteria

Before applying criteria:

• Share proposed criteria with affected employees
• Explain rationale
• Consider feedback
• Adjust if valid points raised

Step 3: Gather Evidence

Collect documentation for each criterion:

• Performance reviews
• Training records
• Attendance data
• Disciplinary files

Step 4: Score Employees

Apply criteria consistently:

• Same scorer(s) for all employees
• Same evidence standards
• Document reasoning
• Cross-check for consistency

Step 5: Moderate Results

Review scores before finalising:

• Check for anomalies
• Ensure consistency
• Consider if results reflect reality
• Adjust scoring if clearly wrong

Step 6: Individual Consultation

With provisionally selected employees:

• Share their scores
• Explain the criteria and process
• Invite representations
• Genuinely consider what they say

Step 7: Final Decision

After consultation:

• Consider all representations
• Adjust scores if appropriate
• Make final selection
• Document rationale

Consultation on Criteria

Why Consult?

• Shows fair process
• May identify problems with criteria
• Employees may suggest better approaches
• Reduces challenge risk

What to Share

• Proposed criteria
• How you'll measure each
• The weighting
• Opportunity to comment

What You Don't Have to Share

• Individual scores (until individual consultation)
• Exact methodology details
• Business financial information

Challenging Selection

Employee Rights

Selected employees can:

• Request explanation of scores
• Challenge specific scores
• Appeal the selection
• Bring tribunal claim if unfair

Common Challenges

• "My score was wrong"
• "The criteria were unfair"
• "Others were scored inconsistently"
• "You didn't consider my representations"

Defending Challenges

• Clear documentation of scores
• Evidence supporting each score
• Consistent application shown
• Record of considering representations

Common Mistakes

1. Using LIFO Alone

Problem: Age discrimination risk.

Solution: Use length of service as one factor among several.

2. Vague Criteria

Problem: "Attitude" without definition leads to inconsistency.

Solution: Define precisely what's being measured and how.

3. Inadequate Evidence

Problem: Scores based on manager's opinion without records.

Solution: Require documented evidence for all scores.

4. Inconsistent Application

Problem: Different scorers using different standards.

Solution: Train scorers, moderate results, same person scores all where possible.

5. Not Excluding Protected Absence

Problem: Counting maternity or disability absence.

Solution: Clear policy to exclude protected absence from attendance criteria.

6. Pre-Determined Outcome

Problem: Scores adjusted to achieve desired result.

Solution: Score first, then accept the outcome.

Record Keeping

What to Document

• Selection pool and rationale
• Criteria chosen and why
• Weighting rationale
• Evidence used for each score
• Who scored and when
• Any moderation/adjustments
• Consultation records
• Appeals and outcomes

How Long to Keep

At least 6 years after the redundancy (limitation period for tribunal claims plus margin).

Checklist

Before Scoring

• Pool defined and justified
• Criteria chosen and weighted
• Criteria consulted on
• Evidence gathered
• Scorers identified and trained

During Scoring

• Consistent application
• Evidence documented
• Scores recorded accurately
• Moderation conducted
• Protected absence excluded

After Scoring

• Results shared with individuals
• Individual consultation held
• Representations considered
• Appeals heard
• Final decisions documented