Redundancy Matrix: Fair Selection Guide for Employers

A redundancy matrix is a tool used by employers to assess employees fairly and objectively during a redundancy process. It involves scoring employees against a set of predetermined criteria to determine who will be selected for redundancy.

The matrix ensures transparency and helps employers demonstrate that decisions were made based on measurable factors rather than bias. Common criteria include skills, qualifications, performance, attendance records, and disciplinary history.

Key risks for employers include selecting inappropriate or discriminatory criteria, applying the matrix inconsistently, or failing to properly consult employees during the redundancy process. These errors can lead to claims of unfair dismissal or discrimination.

Employers can therefore use a redundancy matrix to ensure that they are selecting workers for redundancy based on fair criteria which can be applied objectively, consistently and fairly.

 

Ensure a fair redundancy selection process

 

Employers must act fairly and lawfully at each stage of the redundancy process to avoid unfair dismissal claims. The first step, assuming there is a genuine redundancy situation, will be to consult with affected employees. This will entail determining whether there are any viable alternatives to redundancy, such as suitable alternative positions. In the event that redundancies are unavoidable, you must determine who will be affected. If a several people are at risk, you’ll need to use a fair selection process to determine who will be dismissed.

As an outline, the following are the key steps to implement a fair redundancy selection procedure:

 

1. Consult your employees about the criteria you plan to use so they can have a say in the process; if they feel like they contributed, they will be more engaged.
2. Check to see if you already have a collective agreement or contractual procedure in place that governs selection criteria, and if so, follow it.
3. Choose objective criteria that can be verified with data, such as training records or appraisals, to the extent possible.
4. Avoid using subjective criteria that are based on a person’s personal opinion.
5. When selecting workers for redundancy, avoid using direct or indirect discrimination.
6. Ensure that the assessment is carried out by more than one person to ensure fairness and impartiality.

 

You should able to demonstrate that you used a methodical approach to selection, and in doing so maintained objectivity and fairness. A redundancy matrix can aid in the selection of employees and is regarded as a reliable method. It pinpoints criteria against which individual employees will be scored, and by working hard at the beginning to identify what these are, you can use it as part of your consultation with those whose jobs are at risk. Completing the criteria sheet for each employee and keeping it as a record to show how you reached the decision.

A matrix identifies criteria against which you will be scoring individual employees – work hard to identify what these are and be open about this from the start, using it as part of your consultation with affected employees. Completing this for each employee and keep it as a record of how the decision was made.

 

What to include in a redundancy matrix

 

Typical redundancy selection criteria include:

 

• Overall skill set – assessment of skills should be based on those which will be required for your continuing business needs. Allocation of scores should reflect the range of skills the individual has, which are relevant and directly linked to the role.
• Qualifications – use of qualifications should be based on the essential and desirable qualifications or equivalent listed within the person specification for the role. If there were no specified qualifications required for the post, then this selection criterion should not be used.
• Experience – assessment of which should be based on that which is directly relevant to the continuing needs of your business. Allocation of scores should reflect the breadth and depth of experience relevant and directly linked to the role.
• Standard of work (not covered specifically by performance)

 

In addition, the following factors can also be valuable when creating a redundancy matrix:

 

Performance

 

You can include performance as a criterion if you can adequately measure performance. Good appraisal review systems, records of discussions, or performance reviews are all measures of performance. Although if you can measure it using sales figures or work output, this will be seen as much more objective. If you apply scoring to performance reviews, you should ensure you can show logical reasoning and are consistent across the selection pool.

Where an affected worker has been on a period of extended leave, such as maternity leave, you will need to ensure that any time periods are adjusted accordingly.

It is common practice to carry out assessments of performance and ability by requiring all employees within the selected pool to take an interview or undertake other assessment exercises. If this is the case, you should let the employee know what information you will be taking into account and what you are interviewing for – allotting at least two people to conduct the interviews for the purposes of impartiality. You could also consider offering coaching or guidance to those employees who are affected, which could further demonstrate your commitment to objectivity.

 

Disciplinary records

 

These are commonly used in the process of scoring in a redundancy matrix exercise because it is an acceptable criterion; provided the scoring is consistent and applied in a reasonable way.

 

Attendance records

 

Attendance and absence records can be used to score individuals within the selected pool and will usually be seen as both measurable and objective. However, you need to ensure your records are accurate and that you also consider the reasons for the absence. Anything related to maternity, pregnancy, other family leave reasons and disability, should be discounted to avoid claims for unfair dismissal and discrimination.

Take care that you do not make any assumptions about what a non-genuine absence might be – if you have robust policies and mechanisms for managing absence and return to work interviews, including making proper use of your sickness procedures, you are more likely to be able to claim you have used this criterion fairly. It is also worth remembering that a previously undisclosed disability may emerge during the consultation process, which would need factoring into your scoring.

 

Length of service

 

The last-in-first-out (LIFO) approach has become less common, not least due to the potential for unlawful discrimination on the grounds of age. It also fails to take into account that new recruits may offer more relevant or stronger skills and experience than longer-serving employees. As such, LIFO tends to be used in conjunction with other criteria, as we discuss in our in-depth guide.

 

What not to include in a redundancy matrix

 

An unfair redundancy selection can arise in a variety of ways, for example, if selection relates to parental matters, such as pregnancy or maternity leave. This puts them at an unfair disadvantage, and as a result you run the risk of a discrimination claim being made against you.

You cannot include any of the following within your redundancy matrix, otherwise your decision will be considered automatically unfair:

 

• Reasons relating to health and safety
• Working time rights
• Asserting a statutory right
• Trade union membership or activities
• A TUPE transfer
• Making a protected disclosure
• Taking part in industrial action

 

Aside from avoiding the above, there is a wide range of criteria to choose from. Generally, tribunals don’t tend to have a view as to what these should have been, but you should ensure the criteria you decide upon are relevant to the job, are objective, and that you apply them reasonably and fairly across the board. Any vague criteria are likely to be seen as unfair, as is how much losing a particular employee could save the business.

 

How to attribute scores to employees

 

You can have different scores and levels of points corresponding to the importance of each criterion within your business. This is commonly referred to as “weighting”. For example, if it is agreed that an employee’s attendance record is less important than performance, you can attribute fewer points for this. For instance, you may score attendance out of 5 points and performance out of 10. In addition, you should also include written evidence against each of the criteria. This is so that if an employee asks to see their score, you should be able to justify your reasoning to them.

 

Example scoring

 

Work performance:

 

• Outstanding – consistently achieves and/or exceeds company standard [15]
• Exceeds objectives of the role [12]
• Meets all role objectives [9]
• Meets some role objectives [6]
• Fails to meet any objectives of the role [3]

 

Skills and competence:

 

• Multi-skilled, fully competent, and supports others regularly [15]
• Fully competent within current role [12]
• Competent in most aspects of their current role, requires some level of supervision [9]
• Shows some competence within the role, requires regular guidance and supervision [6]
• Cannot function within supervision or close support [3]

 

Disciplinary record:

 

• Clean record – no disciplinary action [5]
• Record of informal disciplinary action taken [4]
• Current (active) verbal warning [3]
• Current (active) written warning [2]
• Current (active) final written warning [1]

 

Attendance record:

 

• No recorded absences [5]
• Some absences but below the average for selection of pool [4]
• Attendance in line with general workplace (or selection pool) average [3]
• Absence level above average for selection pool [2]
• Unacceptable and high level of absence [1]

 

The importance of a fair and transparent redundancy process

 

When scoring, affected employees must be assessed objectively against the criteria, using evidence (such as personnel records) and direct knowledge of the individual in question. Where possible, there should be more than one person involved in the selection process to avoid concerns about bias and ensure objectivity.

Consult with each employee individually who has been selected for redundancy on the basis of their scores. Give them a copy of their score and allow them the opportunity to comment on it and challenge the basis on which the score has been settled on. You may also consider exploring the possibility of redeployment or other suitable alternative employment.

At the end of the scoring process, it is important to double-check all your calculations in order to remove accusations of personal bias. All score sheets should have clear guidance notes indicating which competencies are required for each particular score.

You should then confirm everything in writing to the selected employees, giving details of how the decision was made, their rights, and any process of appeal.

 

Legal risks for employers

 

If you operate a fair and open process when deciding who to select and then who to make redundant, you minimise the risk of ending up in an employment tribunal. But there are legal risks to take into account, and no matter how thorough or fair you are in your process, there is always the potential for a disgruntled employee to make a claim.

It is important to remember that redundancy is still a dismissal – which means if you don’t follow a fair procedure when establishing the redundancy selection pool and the procedure following on from that to make employees redundant, you may face a claim for unfair dismissal.

Also, if an employee demonstrates the dismissal related to a protected characteristic (such as the employee’s age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief or sex), you could potentially face an unlimited tribunal awarded pay-out for unlawful discrimination.

 

Need assistance?

 

DavidsonMorris are experienced legal advisers to employers on all aspects of redundancy and employee dismissals. Our employment law specialists work closely with our HR adviser colleagues, providing a holistic service to employers managing employee redundancies, advising on procedural matters and employee entitlements to reduce the risk of legal complaints. We also have specific expertise on the use of settlement agreements during the redundancy process. For help and advice with a specific issue, speak to our experts.

 

Redundancy matrix FAQs

 

What is a redundancy matrix?

A redundancy matrix is a tool used by employers to score employees against specific criteria to ensure a fair and objective redundancy selection process.

 

Why is a redundancy matrix important?

It helps ensure that redundancy decisions are transparent and based on measurable factors, reducing the risk of bias or discrimination.

 

What criteria are typically included in a redundancy matrix?

Common criteria include skills, qualifications, performance, attendance, disciplinary records, and length of service. Employers must ensure all criteria are relevant and non-discriminatory.

 

Is it legal to use length of service as a criterion?

Yes, but employers must be cautious as prioritising longer service could indirectly discriminate against younger employees. It is best used alongside other criteria.

 

Can a redundancy matrix include disciplinary history?

Disciplinary records can be included if they are relevant and documented. However, employers must ensure they have followed fair procedures when issuing any disciplinary action.

 

How can employers avoid discrimination in a redundancy matrix?

Criteria should be carefully chosen to avoid bias against protected characteristics such as age, gender, or disability, as outlined in the Equality Act 2010.

 

Are employees consulted about the redundancy matrix?

Employers should explain the criteria and scoring process during redundancy consultations to ensure transparency and give employees the opportunity to raise concerns.

 

What happens if the redundancy matrix is unfair?

If a redundancy matrix is found to be discriminatory or unfair, affected employees may bring claims for unfair dismissal or discrimination against the employer.

 

Can employees appeal their redundancy selection?

Employees have the right to appeal if they believe the selection process, including the redundancy matrix, was unfair or incorrectly applied. Employers must provide a clear appeals process.

 

How should employers document the redundancy process?

Employers should keep records of the criteria, scoring, and decision-making process to demonstrate fairness and compliance with legal obligations if challenged.

 

Glossary

 

Term	Definition
Redundancy Matrix	A structured tool used to score employees against set criteria during a redundancy process to ensure fairness.
Redundancy	The termination of employment due to the employer no longer needing a specific role or reducing the workforce.
Criteria	The measurable factors used in a redundancy matrix, such as skills, performance, attendance, and qualifications.
Objective Selection	A process that ensures redundancy decisions are made based on measurable and fair criteria, avoiding bias.
Equality Act 2010	UK legislation that protects employees from discrimination based on protected characteristics, such as age or gender.
Protected Characteristics	Traits such as age, disability, race, sex, and religion that are safeguarded from discrimination under the Equality Act 2010.
Performance	An employee’s ability to meet job expectations, often included as a criterion in a redundancy matrix.
Attendance	An employee’s record of absence or punctuality, which may be considered during redundancy scoring if used fairly.
Disciplinary Records	A documented history of formal warnings or misconduct, which can be included in a redundancy matrix if appropriate.
Length of Service	The duration of time an employee has worked for an organisation, sometimes used as a criterion in redundancy selection.
Consultation	A legal process requiring employers to discuss potential redundancies with employees and explain the selection process.
Unfair Dismissal	Termination of employment that does not follow fair procedures or is based on discriminatory or inappropriate criteria.
Appeal	The process by which an employee can challenge their redundancy if they believe the decision was unfair or incorrect.
Scoring	The method of assigning points to employees based on predefined criteria in the redundancy matrix.
Legal Compliance	Adherence to employment laws and regulations, ensuring fairness and avoiding legal claims during redundancy processes.
Bias	An unfair preference or prejudice that can occur if redundancy criteria or scoring are not applied objectively.
Documentation	Records of the redundancy process, including criteria, scoring, and consultations, which are essential for transparency and compliance.