Bumped Redundancy and the Range of Reasonable Responses: To what Extent, if any, should Employers Consider Bumping? Life after Mirab v Mentor Graphics Limited UKEAT/0172/17DA

Abstract

Employers often face a plethora of issues in redundancy situations. Likewise, employees often fear or are overwhelmed by the prospect that they may be chosen for redundancy. Whilst these issues have been widely written about there is little discussion of “bumping.” When the issue appears in the employment tribunal, in cases such as Mirab v Mentor Graphics Limited, it is too late and the employer faces a successful unfair dismissal claim against it. Bumping occurs where an employer makes redundant a junior employee: one whose role has not identified as being at risk of redundancy. The result is that the more senior employee, one whose role was been identified as being at risk of redundancy, is placed into the junior role and therefore becomes subject to terms and conditions that are often less beneficial for example the junior role will inevitably come with a reduction in salary and/or perks. This article explores the legal issues that surround the instances in which an employer should consider “bumping,” its relationship with the band of reasonable responses and the resultant effect, if any, of failing to do so.