When making workers redundant, one of the requirements on employers through the redundancy process is to ensure fair selection criteria are used so as to avoid acting unlawfully and risking costly tribunal claims.
The ‘last in first out’ approach was once one of the most common ways of selecting employees for redundancy, as an objective and relatively straightforward criterion to apply. However, as equality and anti-discrimination legislation has developed in recent years, this approach has become problematic and is now largely discredited as a sole means of selection for redundancy because of its potential to discriminate.
There are various different ways of identifying a pool for redundancy selection, including the last-in-first-out method (LIFO).
The LIFO method involves selecting employees on the basis of their employment service. This means that those with the shortest length of service will be selected for redundancy first, or scored the highest using a redundancy matrix, while those with a longer service time with their employer will be selected last or scored the lowest.
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