Peculiar Scoring System Rendered Genuine Redundancy Exercise Unfair

A redundancy exercise may be based on reasonable criteria yet flaws in the scoring system used to assess employees’ performance may still render a dismissal unfair. In a case on point, an Employment Tribunal (ET) identified a number of errors and peculiarities in a scoring procedure that led to…

Oct 25, 2022

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A redundancy exercise may be based on reasonable criteria yet flaws in the scoring system used to assess employees’ performance may still render a dismissal unfair. In a case on point, an Employment Tribunal (ET) identified a number of errors and peculiarities in a scoring procedure that led to an agency worker wrongly losing his job.

Faced with a business downturn arising from the COVID-19 pandemic, the employer selected a group of eight workers on the basis of their length of service, from which five would be made redundant. There was no dispute that there was a genuine redundancy situation and the ET found that the assessment criteria used for selecting those who would lose their jobs were reasonable.

In nevertheless upholding the worker’s unfair dismissal complaint, the ET found that the scoring system used was so obviously unfair and likely to produce a perverse outcome that it was not within the range of reasonable options open to an employer. Giving an example, the ET noted that the system applied meant that a worker with a poor disciplinary record would keep his job over one with an exemplary record just because the former had completed one simple training course.

Certain criteria were given excessive weight over others and, but for a careless error that was made when scoring his absence record, the worker would have kept his job. The unfairness was far from cured by an appeal process in which radically different criteria were employed. At that stage, he was unfairly penalised in that his strengths in training and team leadership were wholly left out of account.

The ET found no evidence that the worker had been targeted for redundancy due to his outspokenness in making complaints. However, aspects of the scoring process were peculiar or highly unusual and there was circumstantial evidence that one of his colleagues, who kept his job, benefited from some form of favouritism, whether conscious or unconscious. The amount of the worker’s compensation would be assessed at a further hearing, if not agreed.

Restrictive Covenants and Employers’ Legitimate Business Interests

When it comes to considering the enforceability or otherwise of restrictive covenants in employment contracts, judges are required to focus on the need of employers to protect their legitimate business interests. The Court of Appeal emphasised that point in a guideline case. A software company sought a pre-trial injunction against a former employee, alleging that he had breached a non-compete covenant in his employment contract. The covenant forbade him from working for a competitor for 12…

New National Minimum Wage Rates

The National Minimum Wage (Amendment) Regulations 2025 came into force on 1 April and provided for the following changes to the National Living Wage (NLW) and the National Minimum Wage (NMW) rates:The NLW, which applies to those aged 21 and over, will increase from £11.44 to £12.21 per hour; The NMW for 18- to 20-year-olds will increase from £8.60 to £10.00 per hour; The NMW for 16- and 17-year-olds will increase from £6.40 to £7.55 per hour; and The apprentice rate of the NMW, which applies…

Badly Treated by Your Employer During the Pandemic? See a Solicitor Today

Hospitality businesses endured a torrid time during COVID-19 lockdowns, but the majority did their best to treat staff fairly. As an Employment Tribunal (ET) ruling showed, however, those that did not can expect to reap a bitter harvest. The case concerned a man with mental health difficulties who had been praised and promoted for his work as a pub chef. After the pandemic struck and the pub had to close, he was placed on furlough. Whilst at home, he was in close contact with his father, who…