Williams v Compair Maxam

The five principles for fair redundancy selection

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Is LIFO (last in, first out) automatically fair?

LIFO is objective and meets Williams criteria on paper. However, it can indirectly discriminate by age — a young employee dismissed under LIFO may still succeed in a discrimination claim.

If no union exists, do I still get consultation?

Yes. Williams requires consultation with the union or, where none exists, individuals. Individual consultation is always required — about the redundancy, the criteria, and any alternatives.

Do fixed-term contract redundancies follow the same rules?

The principles apply. If a role genuinely disappeared, fixed-term employees have less protection than permanent staff, but dismissal labelled “redundancy” must still follow Williams principles — it can’t be a pretext for non-renewal.

If the employer announces redundancy and immediately dismisses people, is that unfair?

Almost certainly yes. The first principle is “warning” — giving notice so employees can prepare. Same-day announcement and dismissal violates that and the consultation requirement.

Can I challenge the selection pool itself (not just my selection)?

Yes. If the employer defines the pool in a way that arbitrarily includes you while excluding others who could be redeployed, that’s challengeable. Challenging the pool is often more effective than challenging the criteria.

Williams v Compair Maxam

Last updated: April 2026

Five principles govern what a reasonable employer does when carrying out a redundancy: warning, consultation, objective selection criteria, alternatives, and pool selection.

Williams v Compair Maxam Ltd [1982] concerned mass redundancy at a manufacturing facility. Browne-Wilkinson J set out what a reasonable employer should do when carrying out a redundancy. The five principles have become the standard framework for assessing redundancy fairness.

Give as much warning as possible so employees can take steps to find alternative employment or explore other options. A sudden announcement of redundancy followed by immediate dismissal shows poor practice. The more notice, the better the procedure.

Consult meaningfully with the union (or, where no union, individuals) — not a rubber stamp, but genuine two-way dialogue. Consultation means: listening to proposed alternatives, explaining the redundancy, considering feedback, and genuinely engaging with responses. A predetermined redundancy presented as a "consultation" fails this principle.

3. Objective Criteria

Establish and apply objective, verifiable selection criteria rather than purely subjective assessments. Examples of objective criteria: LIFO (last in, first out), attendance records, skills matrices, performance ratings (if documented). Examples of subjective criteria to avoid: "team fit," "attitude," "manager's view" (without documentation).

Consider whether employees can be offered alternative employment rather than dismissal. Redeployment to other roles, roles in different locations, roles that match some (not all) previous skills — all should be considered. If the employer claims no alternatives existed, the tribunal may scrutinise whether that's true.

Apply the criteria fairly and consistently; show your working. If the criteria are "attendance" and "performance," document the attendance records and performance ratings for all in the pool. If the selection is subjective despite stated objective criteria, the principle fails.

What this means practically

These are not absolute rules but indicators of reasonableness. Departure from them is not automatically unfair, but requires strong justification. The more departures from the five principles, the more likely the dismissal falls outside the band of reasonable responses.

Individual consultation vs collective

If 20 or more redundancies in 90 days (or 10 in 30 days in a smaller business), collective consultation obligations apply under TULRCA 1992. But individual consultation with the affected employees is always required regardless. You should be consulted individually even if collective consultation also occurs.

Selection criteria — objectivity matters

Tribunals will scrutinise subjectivity closely. Criteria like "attitude," "team fit," or manager assessments with no documentation are highly vulnerable. A criteria like LIFO (length of service) is objective but can indirectly discriminate by age if it disproportionately affects older workers. Performance ratings are objective if documented, but subjective if manager's unsupported opinions only.

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Williams v Compair Maxam Ltd [1982] IRLR 83 (BAILII)

Questions people ask

Is LIFO (last in, first out) automatically fair?

LIFO is objective and meets the Williams criteria on paper. However, it can indirectly discriminate by age. An employee dismissed because they're the youngest, where the age group affected is predominantly younger, may succeed in a discrimination claim even though the redundancy dismissal itself is fair under Williams.

If no union exists, do I still get consultation?

Yes. Williams requires consultation with the union or, where no union, individuals. Individual consultation is always required. You should be consulted about the redundancy, the selection criteria, and alternatives. If no union exists, the employer cannot avoid consultation by claiming there's "no one to consult with."

Do fixed-term contract redundancies follow the same rules?

The principles apply, but dismissal at the end of a fixed term for redundancy (not mere non-renewal) requires consultation and fair procedure. If the role genuinely disappeared, the fixed-term employee has less protection than a permanent employee. But dismissal for "redundancy" must still follow Williams principles — it can't be a pretext for non-renewal.

If the employer announces redundancy and immediately dismisses people, is that unfair?

Almost certainly yes. The first principle is "warning" — giving notice so employees can prepare. Announcement and dismissal on the same day violates this and likely the "consultation" principle too. No opportunity to consult, consider alternatives, or prepare is a substantial breach of Williams.

Can I challenge the selection pool itself (not just my selection)?

Yes. If the employer defines the pool in a way that excludes some employees but includes you based on arbitrary grounds, that's challengeable. Example: "All warehouse workers are at risk" when office staff could also be redeployed. Or "everyone on this site" when other sites could absorb the work. Challenging the pool is often more effective than challenging the criteria.

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