Redundancy selection matrix factsheet

Introduction

An employer that has identified a pool of employees at risk of redundancy must follow a fair procedure when deciding who to select from that pool. A redundancy selection criteria matrix can help employers reach that decision.

Which selection criteria are fair?

If criteria have been agreed in advance with a union or employee representative body, then generally these should be applied. Otherwise it is a case of the employer choosing fair criteria. Objective criteria commonly include a selection of the following criteria:

• Last In First Out (LIFO) – this was popular in the past, but is becoming less so as it can be damaging to the employer’s skills base. It is also possibly indirectly discriminatory against women who have recently returned to work after raising a family and may be indirectly discriminatory on the grounds of age. For these reasons it should not be used as the sole criteria but used as a tiebreaker criteria if necessary.
• Skill and knowledge – these must be assessed objectively and the criteria applicable should be clearly defined.