Employment Court rules on its ability to inquire into the business case behind a redundancy

In the Employment Court's recent decision in Totara Hills Farm v Davidson , Chief Judge Colgan has confirmed that the Court can assess the business decision behind a redundancy to determine whether the decision, and how it was reached, were what a fair and reasonable employer could have done in all the relevant circumstances.

This confirmation means that employers can no longer assert that a decision to restructure was justified simply because it was a genuine decision, as opposed to a sham to hide a dismissal for other reasons. Rather, the Authority or Court is now entitled to also enquire into the merits of the decision ... READ MORE

Released by Minter Ellison Rudd Watts - 16 April 2013