Can employers use last in first out?

In most cases, it is not advisable for an employer to use “last in, first out” as the only criterion for selection if there are other factors that can be taken into account.

Is LIFO legal?

IFRS prohibits LIFO due to potential distortions it may have on a company’s profitability and financial statements. For example, LIFO can understate a company’s earnings for the purposes of keeping taxable income low. It can also result in inventory valuations that are outdated and obsolete.

Can I be made redundant if my role still exists?

Can I be made redundant if my job still exists? Redundancy is only allowed if there’s no longer a need for the role to exist, and it certainly isn’t legal for you to be made redundant only for your job to be taken by someone else shortly after you’ve been made redundant.

What is LIFO retrenchment?

If employees are selected in terms of unfair criteria their dismissals with be considered unfair. The most commonly used and often preferred selection criterion when retrenching employees is the last in first out (“LIFO”) principle. The Labour Court has consistently accepted the LIFO criterion as fair.

Is it legal to use’last in, first out’?

Some in HR believe we can use the ‘last in, first out’ approach. I’m concerned this may not be very watertight, legally. A You are right to be concerned.

When did last in first out become law?

However, the enactment of the age discrimination legislation in 2006 has made the use of ‘last in, first out’ less straightforward.

Which is the first case of last in first out?

One of the first cases that discussed Last In First Out after age discrimination laws were enacted was the Court of Appeal case of Rolls Royce plc v Unite the Union. In this case, Rolls Royce sought a declaration that its use of length of service (a first in last out criterion) as part of redundancy selection was unlawful.

What does last in first out in redundancy mean?

What does Last In First Out mean? LIFO, or Last In First Out, is a method of redundancy selection that involves selecting employees for redundancy on the basis that those with the shortest service should be selected first.