Aldi UK Job Cuts: Redundancy Rights Law

Aldi’s UK business is shedding hundreds of head office and logistics jobs, but much of the work stays. It’s touching. For affected employees, that poses the painful question: if the job still exists, can you really be “redundant”? UK redundancy rights outsourcing cases are best understood by starting with the way the law defines redundancy, not the way it feels.

Key Highlights

Aldi is considering cutting up to 150 technology jobs, following 103 redundancies in finance and administration earlier this year.
Store jobs are safe but almost 20 buying director jobs have also been lost.
Finance, procurement and administration work is being outsourced to India and other countries under an agreement with Genpact.
Consultations on redundancies in payroll to start in the coming months.
UK sales increased just 0.4% in the 12 weeks to November 1, while market share fell 0.1 percentage point.
Aldi says changes are gradual, follow consultation and have full support.

What’s Happening at Aldi

Aldi is centralizing work and reducing headcount in country operations as part of a global cost-cutting drive, the Guardian reports. “It’s shortsighted,” said one affected worker. Senior management also seemed out of touch, he said. Aldi said it was always reviewing its operations to make sure it was efficient and kept prices low, and had invested £300m this year to cut prices on 900 products.

Can Your Job Be Redundant If the Work Still Exists?

Yes, often. Under UK law, a redundancy exists where an employer needs fewer employees to carry out work of a particular kind, or fewer employees at a particular location. The need for UK-based employees can legitimately drop because of this, while the work is done elsewhere. This is the reason why offshore business process outsourcing may be legal.

But a lawful reason does not imply a lawful process. An employer can still act unfairly if they:

skips or rushes through a meaningful consultation, employs unfair selection criteria, disregards suitable alternative employment within the business, or uses “redundancy” as a disguise for another reason for dismissal.

Consultation: Your First Line of Protection

Collective redundancy consultation rules apply when an employer proposes to make 20 or more redundancies at one establishment within a 90-day period. There is a minimum period of consultation of 30 days (20-99 roles) or 45 days (100+). There should be real consultation including why jobs are going, how many, how people are chosen and whether jobs can be saved or reduced. Send a written request for this information.

Does TUPE Protect You?

Many workers believe that TUPE rules will transfer them and their contract to the new provider. This might be the case where the work is outsourced to a UK based supplier. When protection is transferred abroad, it is much less certain. Neither assume either way; get specific advice for your situation.

Practical Steps for Workers Who Are Affected

Check your length of service. Redundancy pay under statute and unfair dismissal claims are usually based on qualifying service so check to see if you qualify.
Keep records of consultation meetings, scoring for selection and any alternative roles offered.
Ask about redeployment.
Do not immediately sign a settlement agreement. Get independent advice on the terms first.
Contact ACAS or your union early on. Tribunal claims have short time limits.

The Larger Picture

It’s not only Aldi, Sainsbury’s, Morrisons, Tesco and Asda have all revealed restructuring or job risks this year. With AI-powered outsourcing expanding, more white-collar workers could be made redundant while their jobs continue elsewhere. Understanding your rights in advance could make the difference between accepting a decision and challenging an unfair one.