Definition of redundancy

Case 3: The facts

Mr North, a senior editor, was made redundant in a cost-saving exercise. He claimed that there was no redundancy situation since there was still work for him to do, and that his redundancy was unfair because the company should have offered him alternative work as a more junior editor (even though there was no vacancy).

The ruling

The Employment Appeal Tribunal (EAT) held that this was a genuine redundancy. The test was whether the company still had the same requirement for a senior editor, not whether there was still work that someone in that position could do.

The EAT upheld the tribunal's decision that North's dismissal was unfair, confirming that failing to offer an alternative job can be unfair, even if there was no vacancy. But, it said, the tribunal should have gone on to consider what would have happened had North been offered a more junior role with a substantial drop in salary. If it felt that this might have made little difference to the outcome, a reduction in compensation may be appropriate.

Lionel Leventhal v North UKEAT/0265/04