Beware of Using AI in Redundancy Processes

July 20, 2026
Background

A group of 26 current and former employees have filed a claim against Meta alleging that the company used artificial intelligence systems as part of its redundancy selection process.

The claim relates to a redundancy exercise affecting numerous employees. The claimants allege that Meta relied on various AI-driven systems and employee activity data when selecting employees for redundancy. A key aspect of the claim is that employees who had taken protected leave, such as maternity leave, were disproportionately affected because they generated less data for the systems to assess. Meta has denied the allegations and maintains that workforce decisions were made by people rather than AI.

What does this mean for UK employers?

Although this claim was filed in California and has not yet concluded, the case highlights the increasing use of AI in workplace decision-making and serves as a reminder that technology does not remove an employer’s legal obligations when carrying out any legal process, including redundancy.

In the UK, employees with at least two years’ continuous service have the right not to be unfairly dismissed. Whilst redundancy is a potentially fair reason for dismissal, an employer must first be able to demonstrate that a genuine redundancy situation exists and that employees have been fairly selected.

Fair Processes Matter

Establishing a genuine redundancy situation is only part of the process. Employers must also ensure that any redundancy exercise is carried out fairly. Using AI as part of a redundancy selection process would not necessarily make a dismissal unfair. The greater risk is whether the selection criteria used by the AI, and the way the process is implemented, result in an unfair procedure or discriminatory outcomes. The allegations against Meta demonstrate one of those concerns. If employees who have taken maternity leave or other forms of protected leave are assessed using less data than their colleagues, they may be placed at a disadvantage during a redundancy exercise. Depending on the circumstances, this could give rise to discrimination claims in addition to unfair dismissal complaints.

Similarly, any system which places significant weight on employee activity levels, attendance patterns or workplace monitoring may produce outcomes that disproportionately affect certain groups of employees. For example, employees who take annual leave during school holidays because of childcare responsibilities, or employees who take leave to observe religious events, may generate different activity levels from their colleagues. Employers should therefore carefully scrutinise any criteria used during a redundancy exercise to ensure that they do not inadvertently disadvantage particular groups.

There is also a broader concern that employees may feel discouraged from exercising statutory rights, such as taking annual leave or family-related leave, if doing so negatively affects redundancy selection outcomes. This is likely to undermine confidence in the fairness of the process and increase the risk of challenges being brought.

The key issue is not whether an employer uses AI, but whether there remains meaningful human involvement in the decision-making process. A redundancy process should be transparent, objective and capable of being explained to affected employees. Employers should be able to explain why an employee has been selected and provide a genuine opportunity for consultation and challenge.

Meta may ultimately be able to demonstrate that a genuine redundancy situation existed. However, as with any redundancy exercise, the existence of a genuine redundancy situation does not remove the requirement to follow a fair and reasonable process. With relatively limited barriers to bringing Employment Tribunal claims, employers should be cautious about prioritising speed and efficiency over fairness and transparency. The use of AI may streamline administrative tasks, but it does not eliminate the need for proper consultation, fair selection criteria and careful human oversight.

How we can help

Redundancy exercises can be complex, particularly where employers are considering the use of new technologies and AI-assisted decision-making tools. Our Employment Team can advise on all aspects of a redundancy process, including selection criteria, consultation obligations, discrimination risks and ensuring that any process is fair, transparent and legally compliant.

For further information, or to discuss the issues raised in this article, please contact a member of our Employment Team.

Darren Smith
Partner, Employment
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This reflects the law and market position at the date of publication and is written as a general guide. It does not contain definitive legal advice, which should be sought in relation to a specific matter.

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