UK employers are being encouraged to treat employees with compassion and care during the redundancy process, after a US company reportedly dismissed 900 employees in a single Zoom meeting.

The affected staff were invited to the meeting by Vishal Garg, CEO at mortgage company Better.com, where they were informed that their employment contracts had been terminated.

During the meeting Garg can be heard to say:

“If you’re on this call you are part of the unlucky group that is being laid off. Your employment here is terminated. Effective immediately. This isn’t news that you’re going to want to hear but ultimately it was my decision and I wanted you to hear it from me. It’s been a really, really challenging decision to make. This is the second time in my career that I’m doing this and I do not want to do this. The last time I did it I cried. This time I hope to be stronger. But we are laying off about 15% of the company for [a number of] reasons: the market, efficiency and performances and productivity.”

He then said the employees could expect an email from HR with details of severance and benefits.

Speaking to People Management, Senior Employment Relations Adviser at the CIPD Rachel Suff said there are practical reasons why, in this day and age, employers might choose to conduct redundancy procedures remotely. She said:

“In the current climate when COVID infection rates are high, it can be a sensible health and safety measure. [But] whether an organisation is delivering this type of news in person or remotely, the health and wellbeing of those affected must always come first and their dignity respected. Employers should act with compassion and empathy, and offer individuals wellbeing support throughout."

Suff added that in the UK, there are “vital statutory protections” for workers facing redundancy, including the right to be consulted individually as well as collectively – depending on the numbers involved.

A redundancy consultation is where all employees are invited to a meeting in writing, informing them of the potential redundancy situation and the reasons for this. Employees should be informed of the reason for the redundancy and the selection process that is going to take place. The business should also confirm all the options it has considered to avoid compulsory redundancies wherever possible and invite employees to propose alternative ways to avoid compulsory redundancies.

Chris Deeley, an employment solicitor at JMW Solicitors, said UK employers would likely face legal action if they attempted to dismiss staff over group video call. He said:

“While it might be legally acceptable in the United States, this approach to business restructuring would certainly not be permissible here in the UK, where the rules around redundancy process (and dismissals more generally) are considerably more stringent.”