In Packman v Fauchon, the Employment Appeal Tribunal has held that a reduction in headcount is not necessarily required for redundancy.

What does this mean?

If the amount of work available for the same number of employees is reduced, then a dismissal of an employee caused wholly or mainly for that reason is a redundancy.

What should employers do?

Employers who wish to reduce the number of hours worked by their staff should seek their agreement to a reduction in hours. Where agreement is not forthcoming and it is necessary to dismiss an employee, the employer should take specific legal advice but should budget for making a redundancy payment, if the employee is eligible to receive one.