The recent case of White v HC-One Oval Ltd demonstrates that employers can still be on the hook for unfair dismissal claims, even where the employee requests voluntary redundancy.
HC-One announced proposals to reduce the number of employees carrying out receptionist and administrative work at several of its care homes, including where Mrs White worked as a receptionist, and she was provisionally selected for redundancy. The claimant subsequently requested voluntary redundancy, which was agreed, leading to the termination of her employment. She later submitted a tribunal claim for unfair dismissal, asserting that her redundancy had been deliberately manufactured and that she had been unfairly targeted because she worked part-time and had previously raised a grievance at work.
The Employment Tribunal struck out the claim as having no reasonable prospect of success, because Mrs White herself had requested redundancy.
The Employment Appeal Tribunal (EAT), however, said the tribunal was wrong to assume that just because the dismissal in this case was a voluntary redundancy, it was, by its nature, a fair dismissal. It held that the tribunal should have considered whether there was a fair reason for the redundancy and whether the process had been fair.
As this case highlights, employers should be mindful that requests for voluntary redundancy might still give rise to a claim for unfair dismissal. To avoid situations like this arising, it is essential that employers follow a fair redundancy procedure which is clearly communicated to the employee. It may also be worth considering putting a settlement agreement in place, especially if an employer is offering an enhanced redundancy package or there have been any previous disputes or grievances.
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