When a role is redundant you would think that the position was fairly clear: the person occupying the redundant role should (if no alternative vacancy is found for them) be made redundant. The concept of ‘bumping’ cuts across this. It involves moving a redundant employee into a role held by someone else, who is then themselves dismissed. And it can be fair. Here’s what you need to know:

What is Bumping?

Bumping involves moving Employee A (whose role is redundant) into Employee B’s role, resulting in Employee B being dismissed. Even though Employee B’s role still exists, their dismissal is considered a redundancy if the reason is to free up a role for Employee A. Employee B is entitled to a redundancy payment, but only if redundancy is the main reason for dismissal.

When should bumping be considered?

Bumping can be particularly relevant when:

  • The redundant employee is more senior or experienced than the employee they might replace.
  • The at-risk employee suggests it as an alternative to dismissal.
  • The business wants to retain the skills of the at-risk employee but has no suitable vacant roles.

Do employers have to consider bumping?

In Mirab v Mentor Graphics, the Employment Appeal Tribunal confirmed that while employers are not legally required to consider bumping in every redundancy case, failing to do so could make a dismissal unfair. It’s good practice to at least consider bumping – particularly if it is raised by the at-risk employee or you can identify a role suitable for bumping the at-risk employee into, which is not too different (including skills and salary level) from their current role. 

Managing the Process

  • Consult with Employee A: Discuss potential roles and their willingness to accept a lower-level position.
  • Consult with Employee B: If bumping is pursued, handle Employee B’s dismissal fairly, following a proper redundancy process.
  • Document the process: Keep records of considerations, consultations, and the decision-making process to mitigate unfair dismissal claims.

Final Thoughts

Bumping can be a useful tool but must be managed carefully. It’s not mandatory but considering it can help demonstrate fairness in the redundancy process and reduce legal risk.

Speak to Jon Dunkley

Jon is a Partner at Wollens and can advise you. Contact Jon via email jon.dunkley@wollens.co.uk or call 01271 341021.

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.