Redundancy
Redundancy occurs when an employer needs to reduce its workforce due to business changes such as restructuring, closure, or reduced demand. While redundancy can be lawful, employers must follow a fair process and meet their legal obligations.
We provide clear advice on redundancy rights, payments, and potential claims where procedures have not been followed correctly.
Common Redundancy Issues
- Statutory Redundancy Pay
Employees with at least two years’ continuous service may be entitled to statutory redundancy pay. The amount depends on age, length of service, and weekly pay, subject to statutory limits. - Unfair Redundancy Selection
A redundancy may be unfair if the selection process is discriminatory, arbitrary, or based on improper criteria. Employees have the right to be selected fairly using objective methods. - Failure to Consult
Employers are required to consult with employees before making redundancies. A failure to consult, particularly in collective redundancy situations, may result in legal claims.
Redundancy – FAQs
What qualifies as a Genuine Redundancy?
A genuine redundancy arises when an employer no longer requires a role due to business closure, workplace relocation, or reduced need for certain work.
Am I Entitled to Statutory Redundancy Pay?
You may be entitled if you have at least two years of continuous employment and are dismissed by reason of redundancy.
Can Redundancy be Unfair?
Yes, even where redundancy is genuine, a claim may arise if the selection process or procedure was unfair.
What happens if my Employer does not Consult me?
A failure to consult may lead to claims for unfair dismissal or, in collective cases, a protective award.
Is Redundancy the same as Unfair Dismissal?
No, redundancy is a potentially fair reason for dismissal, but it must be carried out fairly to avoid an unfair dismissal claim.