What is a Section 278 Agreement?

A Section 278 Agreement is a legal agreement between a developer and a highway authority to carry out highway works.

Redundancy And Bumping: What You Need To Know

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.