Can an employer make permanent employees redundant and offer role to FTC employee?

Our consultation has just begun.
There are 40 identical roles in what will be 32 available roles - so 8 redundancies.
Of the 40, 8 are Fixed Term Contractors.  From what I understand, they will be offered one of the 32 permanent roles.
As part of consultation we were asked if we knew how to avoid redundancies.  The above info wasn't available from day 1, but has since become available.  The obvious response is that if all FTCs were allowed to run, then not a single redundancy would be required.  
The question is: Given that 32 permanent roles are in place for 32 permanent roles, can the company make permanent staff redundant and replace the permanent roles with FT Contractors?  (Assuming the FTC would become permanent)
This question was raised by the union prior to consultation, but wasn't answered.  
Thanks

Comments

  • unforeseen
    unforeseen Posts: 7,376 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 25 February 2021 at 9:16AM
    I'm sure they can
    Have you thought that the longer term plan is for only 24 posts. By using the FTC employees then they do not need a further round of redundancies as the FTC doesn't get renewed.

    So reality is that 32 of you are fighting for 24 posts
  • Andy_L
    Andy_L Posts: 12,983 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Our consultation has just begun.
    There are 40 identical roles in what will be 32 available roles - so 8 redundancies.
    Of the 40, 8 are Fixed Term Contractors.  From what I understand, they will be offered one of the 32 permanent roles.
    As part of consultation we were asked if we knew how to avoid redundancies.  The above info wasn't available from day 1, but has since become available.  The obvious response is that if all FTCs were allowed to run, then not a single redundancy would be required.  
    The question is: Given that 32 permanent roles are in place for 32 permanent roles, can the company make permanent staff redundant and replace the permanent roles with FT Contractors?  (Assuming the FTC would become permanent)
    This question was raised by the union prior to consultation, but wasn't answered.  
    Thanks

     The cant make perm staff redundant and replace them immediatly with new fixed term contractors, as those roles would clearly not be redundant if they need replacements that quickly. (Assuning they have over 2 years service and thus cant be arbitrarily kicked out for almost any reason)
    They can include the FTCs in the redundancy pool and select from that pool who goes. Depending on contract terms, length of service etc it may be cheaper to make perm staff redundant first. The FTCs may have  niche skills that permies dont
  • Thanks for the responses.
    Just to clarify, what appears to be happening is they are looking to make the FT Contractors permanent - so a currently permanent role could be lost and replaced by another person (who was previously FTC, but would become permanent).  Doesn't feel quite right.
    I checked the company policy for redundancy and the first point on how to avoid redundancies was to review how many contractors they have.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Are these FTC internal same basic T&C like pay and holidays  or contract rate type employees/contractors.

    If any of the standard  FTC are  2+ years employment they would need to be made redundant just the same as the full timers.

    Pooling with other employees doing the same job makes sense


  • Most contractors were put onto contracts last year for either 12 or 18 months. These are similar to perm T&Cs.  
    There examples of 12 month contracts finishing in June. 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic

    Just to clarify, what appears to be happening is they are looking to make the FT Contractors permanent - so a currently permanent role could be lost and replaced by another person (who was previously FTC, but would become permanent).  Doesn't feel quite right.

    If the selection process uses say a skills matrix. Then perfectly reasonable.  The company will wish to retain the best people for the positions available. It's their prerogative. In arriving at the decision as to who stays and goes it's a pure business decision. Tough but fair.  No one likes making employees redundant but it's the harsh reality of financial survival. 
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