Redundancy bumping is where one employee who is potentially at risk of redundancy (A) is moved into another role currently being carried out by someone else (B) resulting in employee B being made redundant instead of employee A.
What is an example of redundancy bumping?
For example, if employee A was being considered for redundancy and employee B was in a lower or horizontal position, it would be considered redundancy bumping if employee A was offered employee B's role and employee B was made redundant instead.
What is “bumping” in the workplace?
“Bumping” is when employees with longer service with the employer, are then transferred to positions held by employees with shorter service in other divisions/departments. Horizontal “bumping” – where an employee is transferred to a position of similar status, conditions of employment and remuneration; and
What is ‘bumping’ in a dismissal case?
There is not necessarily a requirement for the employee who is dismissed to have been carrying out the particular type of work that has diminished. This means that ‘bumping’ can occur – where one employee (A) is made redundant so that another employee (B) can be retained in A’s role – and that this is potentially a fair reason for dismissing A.
What does it mean to be subject to bumping?
'Subject to bumping' means that the employee currently performing a particular job role may be displaced by another employee, where there is a diminution in the need for employees, rather than a cessation or diminution in the requirement for someone to do the work undertaken by the employee being redundant. What are bumping rights?
Does an employer have to consider bumping?
The principle set by the EAT is that there is no strict requirement on an employer to consider bumping its employees in order to dismiss fairly in every redundancy case, nor is the employer under a positive obligation to dismiss another employee to preserve the employment of another member of staff.
What are the 5 stages of redundancy?
Basically, there are five main stages to consider during the redundancy process:Stage 1: Preparation. ... Stage 2: Selection. ... Stage 3: Individual Consultation. ... Stage 4: Notice of Redundancy and Appeals. ... Stage 5: The Termination Process.
What is bumping in retrenchment?
“Bumping” is when employees with longer service with the employer, are then transferred to positions held by employees with shorter service in other divisions/departments.
What are bumping rights?
Bumping Rights. In a seniority system, the rights of workers with greater seniority whose jobs are abolished to replace (bump) workers with less seniority so that the worker who ultimately loses his/her job is not the worker whose job was abolished. Back. U.S. DEPARTMENT OF LABOR.
Can you be sacked during redundancy?
So in theory - as long as you follow procedure properly and have the evidence to do so - if an employee commits gross misconduct, they can be sacked immediately, even during a notice period.
Can you be made redundant if your job still exists?
Although there are many reasons for legitimate redundancy, it's illegal for you to be made redundant whilst your job still exists. Therefore, if you think someone else has taken your job after you've been made redundant, seek professional advice immediately.
What are the two types of retrenchment?
Types of Retrenchment StrategiesLiquidation.Turnaround.Divestment.
Can a company hire a new employee after retrenchment?
It is very common practice for employers to include, in their letters of retrenchment, that they will re-employ the retrenchee if a suitable vacancy arises within six months after retrenchment. However, this six-month period is not provided for in any statute; it is just a customary practice.
How long does an employer have to pay a retrenchment package?
if the employee was employed for less than 6 months, s/he must be paid 1 weeks' notice pay; if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks' notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks' notice pay.
What does bumping mean in HR?
Bumping rights are privileges provided to more senior-level employees whose positions have been eliminated or selected for layoff, allowing the employee with seniority to accept an alternative position that is currently occupied by a less-senior employee, resulting in the employee with less seniority being RIF'd or ...
How many warnings before you can sack someone?
Typically, you might give an employee one verbal warning and two written warnings before dismissal. Verbal warnings will often be removed from an employee's disciplinary record after six months and written warnings after 12 months (if there are no further disciplinary offences).
What does subject to bumping mean?
What does subject to bumping mean? Subject to bumping means that the employee holding the job in question can be displaced by another employee in terms of applicable bumping rights.
What are the steps of the redundancy process?
Step 1: Check if redundancies are necessary.Step 2: Follow the right process.Step 3: Tell employees.Step 4: Hold redundancy consultations.Step 5: Select employees for redundancy.Step 6: Work out redundancy pay.Step 7: Give redundancy notice.Step 8: Offer an appeals process.More items...
How long does it take to process redundancy?
Types of consultation needed and relevant time framesNumber of employees to be made redundantTiming of consultationFewer than 20 employeesWithin a reasonable time20–99 employees30 days before first dismissal100+ employees45 days before first dismissal
What are the signs of being made redundant?
12 Signs Redundancy May be Lurking Around the CornerMonitor the mood in the office. ... Meetings behind closed doors. ... Extreme and pointless cost-cutting. ... Tightening up on expenses. ... Your workload decreases. ... Your productivity decreases. ... Your new title isn't an actual promotion. ... Be aware of the rumours.More items...
What should you not say when making someone redundant?
Don't tell someone they're being made redundant without giving them a firm end date. A definite finishing date will make it far easier for them to move on and start looking for a new job. Don't ask people to keep quiet about their redundancy – at least not for more than a few hours.
What is bumping redundancy?
Bumping redundancy: unfair dismissal. If you think your redundancy is unfair and believe your employer did not consider redundancy bumping when they should have, then we may be able to help you to make an unfair dismissal claim.
What if you’re a victim of bumped redundancy?
If you are a victim of bumped redundancy, your employer must ensure that the reasons why you were chosen to be made redundant were fair and clear and not as a result of discrimination. It is possible to challenge your redundancy by either speaking to your employer or writing them a redundancy appeal letter. However, if you have worked for your employer for less than two years then you will not be entitled to any redundancy rights and may not be able to claim for unfair dismissal. However, if you believe you have been selected for redundancy due to discrimination under the protected characteristics outlined in the Equality Act 2010, you may be able to make a claim against your employer. You can also make a claim if you have been selected because you have made a health and safety complaint, or you are a whistle-blower.
How to challenge redundancy?
It is possible to challenge your redundancy by either speaking to your employer or writing them a redundancy appeal letter. However, if you have worked for your employer for less than two years then you will not be entitled to any redundancy rights and may not be able to claim for unfair dismissal.
Is redundancy bumping legal?
When an employer is looking to make redundancies, they may have to consider redundancy bumping as an option during a fair process. However, they are not obliged to commit to redundancy bumping.
Does redundancy bumping affect employment?
In case law, there have been a handful of cases, including the much-cited Mirab v Mentor Graphics UK (2018) case, where employees who were made redundant won their unfair dismissal cases as their employer did not consider redundancy bumping as part of the suitable alternative employment procedure. In other cases, such as Samels v University of Creative Arts case, the courts have commented that redundancy bumping can have a damaging effect on employee relations.
What is redundancy bumping?
Redundancy bumping in the UK is where an employee who is to be made redundant is put into another role held by someone else.
When does bumping need to be part of the overall assessment?
Bumping needs to be part of the overall assessment an employer makes when they are following a fair redundancy process.
What did the Employment Tribunal conclude in the case of the employee?
In the case, the Employment Tribunal had concluded that the employee’s dismissal had been fair.
Why do businesses make redundancies?
During tough times, a business may have to consider making redundancies to ensure its survival.
Can an employee be dismissed for being made redundant?
In law, there have been a handful of cases where employees who were made redundant won their unfair dismissal cases.
Is redundancy legal?
While it’s complicated and uncommon, it’s also fully legal as long as you have followed all the other fair redundancy procedures.
Is bumping illegal?
This is not a common practice and is fully legal as long as all the other fair and clear redundancy procedures have been followed. When an employer is looking to make redundancies, they may have to consider redundancy bumping as an option during a fair process.
Is bumping allowed in redundancy?
Now, is redundancy bumping legal? Bumping redundancy law is complicated and can easily lead to unfair dismissal claims being made against you. While it’s complicated and uncommon, it’s also fully legal as long as you have followed all the other fair redundancy procedures.
What triggers a WARN notice?
The WARN Act is triggered by: Plant closings. The shutdown of a single employment site, facility or operating unit, that results in a loss of at least 50 full-time employees, during a 30 day period or. Mass layoffs.
Can I be made redundant if my job still exists?
Redundancy is only allowed if there’s no longer a need for the role to exist, and it certainly isn’t legal for you to be made redundant only for your job to be taken by someone else shortly after you’ve been made redundant.
What does subject to bumping mean?
Subject to bumping means that the employee holding the job in question can be displaced by another employee in terms of applicable bumping rights.
What does bumping mean union?
Bumping rights provide for an employee to displace another employee due to a layoff or other employment action as defined in a collective bargaining agreement, employer policy, or other binding agreement. These rights are often created through a seniority system.
What is meant by the term bumping?
1. To hit or knock against something: boxes bumping against one another in a truck.
What is the fair process for making an employee redundant?
One such alternative for an employer to think about, is whether it can deploy the employee into another role, displace the occupier of that (second) role and make them redundant instead. This is known as ‘bumping’.
Should employers consider bumping another employee?
Employers making redundancies should always consider whether ‘bumping’ another employee would be appropriate says Ipswich solicitors firm, Kerseys. ‘Bumping’ in Redundancy. Redundancy is a potentially fair reason for an employer to dismiss an employee.
What does "bumping" mean in a job?
This means that ‘bumping’ can occur – where one employee (A) is made redundant so that another employee (B) can be retained in A’s role – and that this is potentially a fair reason for dismissing A.
What is redundancy in employment?
A redundancy situation arises where there is a reduction in the employer’s need for employees to carry out work of a particular kind. There is not necessarily a requirement for the employee who is dismissed to have been carrying out the particular type of work that has diminished.
What did the two claimants argue about the dismissal?
The two Claimants argued that they had been unfairly dismissed. The Employment Tribunal said that they were not convinced that there was a genuine redundancy situation at all, and they also had several criticisms of the way that the company handled the selection and redundancy process. Therefore, the dismissals were found unfair. The company appealed to the Employment Appeal Tribunal.
Is there a one size fits all redundancy?
The case illustrates that there is no ‘one size fits all’ when it comes to redundancy and restructure, and although the dismissals were ultimately found to be unfair the principle of bumping was not necessarily a problem. We suspect however that it would have been easier and less risky for the company to take a more straightforward approach and pool the employees by function rather than creating one large selection pool.
Is bumping an employer's obligation?
As you can imagine, bumping is highly likely to be challenged by employee A, so that is one reason why employers usually steer clear. Over the years there have been a number of cases regarding whether an employer is obliged to bump, or at least consider bumping. The current position is that there is no obligation on an employer to use bumping, but in some circumstances it should be considered (particularly where employee B raises the possibility).
Does bumping a job meet redundancy?
The Employment Appeal Tribunal looked at the case law on bumping and found that the situation did meet the definition of redundancy, because although the requirement for the individual employees’ jobs had not necessarily ceased or diminished, the dismissals did result from a reduction in work of a particular kind.
What is redundancy bumping?from davidsonmorris.com
As part of a fair redundancy process, an employer should generally consider whether or not it can offer an ‘at risk’ employee suitable alternative employment.
What if you’re a victim of bumped redundancy?from stephensons.co.uk
If you are a victim of bumped redundancy, your employer must ensure that the reasons why you were chosen to be made redundant were fair and clear and not as a result of discrimination. It is possible to challenge your redundancy by either speaking to your employer or writing them a redundancy appeal letter. However, if you have worked for your employer for less than two years then you will not be entitled to any redundancy rights and may not be able to claim for unfair dismissal. However, if you believe you have been selected for redundancy due to discrimination under the protected characteristics outlined in the Equality Act 2010, you may be able to make a claim against your employer. You can also make a claim if you have been selected because you have made a health and safety complaint, or you are a whistle-blower.
What does 'subject to bumping' mean?from davidsonmorris.com
'Subject to bumping' means that the employee currently performing a particular job role may be displaced by another employee, where there is a diminution in the need for employees, rather than a cessation or diminution in the requirement for someone to do the work undertaken by the employee being redundant.
What are bumping rights?from davidsonmorris.com
These are rights of an employee whose job role has become redundant to replace another, less senior employee in a role for which they are both qualified. This system of reassigning jobs is typically based on seniority, and commonly used in the US, rather than the UK, where there is no strict legal requirement to consider redundancy bumping.
How does bumping work in a union?from davidsonmorris.com
In the US, there are commonly contractual bumping rights, where a senior employee is entitled to replace a less senior employee in a particular job role for which both employees are qualified. The employer and a union representative will typically negotiate the terms and conditions of workers' employment, which usually includes provisions in respect of bumping rights.
Why did Mr Mirab bring an unfair dismissal claim?from davidsonmorris.com
Mr Mirab brought an unfair dismissal claim on the ground that his employer, Mentor Graphics, had not considered all available alternative options to redundancy. On appeal to the EAT, it was ruled that the employer’s failure to consider bumping a more junior employee to allow for a more senior member of staff in a redundancy situation to take the role will not render the dismissal of the senior employee ‘automatically’ unfair.
What causes bumped employees to lose their jobs?from davidsonmorris.com
That said, it must be the transfer or redeployment of the notionally redundant employee into the role of another employee – who is not otherwise at risk of redundancy – that causes the bumped employee to lose their job.
Why do companies bump employees?
A lot of employers, though, are reluctant to consider bumping because of its obvious injustice to the employee who is bumped.
Is bumping a legal requirement?
No, there is no legal obligation to bump. There are no defined rights made specifically for bu mping. In general, employees follow their redundancy policies when it comes to bumping as well.
Is bumping a good or a bad practice?
When considering to bump or not to bump, the following questions can be answered:
Is bumping illegal?
No, in many organizations there are strict rules that govern bumping. It is accepted as long as fair and clear redundancy procedures are being followed.
What is bump redundancy?
Bump redundancy is a process wherein an employee, who is at the risk of being redundant has been offered a position of similar or lower level. This transfers the redundancy from one employee to another.
What are bumping rights?
Bumping rights are the advantages given to an employee in a senior position and at the threat of lay-off to consider selecting a low-level place. The risk of lay-off is transferred to the employee who is at that lower position.
Is bumping employees considered right or wrong?
Whether bumping employees is right or wrong can be decided based on the following questions.
What does bumping up and bumping down mean?
Bumping up refers to an employee being transferred to a higher position than his own in an organizational tree. Whereas bumping down is an employee transferred to a lower position.
Selection criteria
Employers are entitled to adopt a multi-rating selection criteria such as:
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