Redundancy: What do you know about bumping?

Redundancy processes are rarely straightforward. One area that often causes confusion is the concept of ‘bumping’.

Bumping occurs when an employee at risk of redundancy is slotted into a different role currently occupied by someone else. The person in that role is then dismissed instead. This is still treated as a redundancy, even though their position is not disappearing.

Although it may seem controversial, bumping can be a fair and lawful approach in the right circumstances. It is particularly relevant when the at-risk employee is more senior, has unique experience the business wants to retain, or has proposed bumping as an alternative to losing their job.

Employers are not under a legal duty to consider bumping in every redundancy situation. However, case law, including Mirab v Mentor Graphics, makes it clear that failing to consider bumping can make a dismissal unfair if the option is viable.

To manage the process fairly:

• Consider whether bumping is appropriate and whether the employee being replaced holds a comparable role.
• Consult openly with both employees involved.
• Document your reasoning and the steps taken.

Handled correctly, bumping can help retain valuable skills and demonstrate that all alternatives to redundancy have been explored. But it requires careful planning and communication.

If you are managing a redundancy process and are unsure whether bumping applies, speak to our employment law team for practical, tailored advice. If we can help, we will.