New rules on redundancy and pregnancy

The law offers you specific protections to on redundancy and pregnancy if you are a pregnant employee.  These were further strengthened in April 2024.

What employers need to know about the changes

Handling redundancies can be tricky at the best of times.   However, when an employee is pregnant, things become even more complex.

Employers must navigate this carefully to avoid claims of unfair dismissal or discrimination. While employees should make sure they know their rights.

Here’s what both sides should be aware of when redundancy and pregnancy overlap.

Key changes in April 2024: Enhanced protection for pregnant employees

From 6 April 2024, the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 came into full effect.   Offering new layers of protection to pregnant employees and those on family-related leave.

Employees on maternity, adoption, or shared parental leave are given priority for alternative roles during a redundancy process. The April update sees these rights extended to cover the entire pregnancy period and for 18 months after childbirth.

So, from the moment an employee announces their pregnancy, they benefit from enhanced protections.

Prioritising pregnant employees for alternative roles

Pregnant employees (as well as those on maternity leave, adoption leave, shared parental leave, or those who have given birth in the past 18 months) have priority when it comes to suitable alternative roles within the company.

Under the Maternity and Parental Leave Regulations 1999 and the recent Protection from Redundancy (Pregnancy and Family Leave) Act 2023, if there are other roles available, or a new one has been created, the protected employee must be offered the role first, without needing to compete with other employees at risk of redundancy.

This is now in effect from the moment they inform their employer of the pregnancy.  Not just when they go on maternity leave.

Why this matters for employers

Getting this wrong can be costly. If an employee can show that they weren’t given priority for an alternative role, or that the redundancy decision was influenced by their pregnancy, they may have a strong case for unfair dismissal or pregnancy discrimination. Compensation in these cases often includes an award for injury to feelings, which can range from £1,200 to £58,700.  Depending on the severity of the emotional impact, based on the Vento guidelines.

The changes from April 2024 have raised the stakes, requiring employers to take extra care with redundancy processes involving pregnant employees. Failure to comply with these enhanced protections can lead to significant legal and financial consequences.

Practical Steps for Employers

If you’re an employer facing a similar situation, here are a few key steps to help protect both your business and your employee’s rights:

1. Consulting fairly and clearly: Be transparent about why redundancies are happening.   Ensuring that you conduct a proper consultation, involving all affected employees, including those who are pregnant.
2. Prioritising alternative roles: If any roles are available, or if a new one has been created, this must be offered to the pregnant employee/employee on maternity leave first.   Even if they haven’t specifically asked for them.
3. Avoiding assumptions: Don’t assume that a pregnant employee won’t be interested in or capable of taking on another role. Offer the opportunity and let the employee decide.
4. Documenting everything: Keep clear records of all discussions, decisions, and alternative options explored. This can be crucial if there’s any dispute later.

New Redundancy and Pregnancy Rules Summary

For employees, it’s important to know that your pregnancy cannot be used as a reason for making you redundant. If you believe that your redundancy was linked to your pregnancy, or if you weren’t offered priority for other suitable roles, it may be worth seeking legal advice.

For employers, understanding the additional protections introduced in April 2024 is vital in avoiding legal pitfalls. A failure to prioritise suitable roles or properly consult with the employee could result in significant compensation claims.

At Vincent’s Solicitors, Michael Sandy can advise on employment law matters. Helping you navigate the new rules on redundancy and pregnancy along with other complex issues. For Clear, precise advice in plain English contact us at MichaelSandys@vslaw.co.uk