Redundancy strategies need to be carefully considered to ensure companies comply with the Employment Equality Act, a performance assessment company says.

Approaches such ‘last in, first out’ and looking at past performance are being used by companies, but they are ‘highly irresponsible,’ according to SHL People Performance.

The organisation recommends companies avoid being discriminatory and advises them to look at current performance to decide which employees to retain.

John Bateson, chief executive at SHL, said businesses have become well versed at using assessment tools and techniques for recruitment.

"But it is essential that similar rigour is applied when looking at redundancies and redeployment," he added.

Companies should look at their future plans in order to identify the roles which will be required for the growth of the business, the organisation says.

In other news today, it has been revealed the number of unemployed people in the UK rose by 164,000 in the three months up to August this year, according to the government.