Redundancy

Redundancy is the name given to the situation where you are dismissed for genuine commercial reasons. Redundancy laws provide a structure and process to carry out what can sometimes be an unavoidable situation. Where a business changes ownership, employees are offered protection under the TUPE laws.

Redundancy could occur for a number of genuine reasons including:

• new technology
• need to reduce expenses
• closure or transfer of a business

Redundancy process

If you are put at risk of redundancy, your employer must consult with you, and other affected employees before making anyone redundant. This consultation should allow you the opportunity to influence the process. If your employer does not give consult with you, you may be able to make a claim for unfair dismissal.

Your employer should be fair and objective when selecting people for redundancy - there should be clear criteria and evidence as to why one employee has been made redundant over another. If an employer does not act fairly and objectively, it may be possible to challenge the selection criteria and the redundancy may be considered an unfair dismissal. If your employer uses selection criteria that discriminate against you because of your race or sex, you may also have a claim for discrimination.

Redundancy pay

If you have been employed continuously for two years, you will be entitled to statutory redundancy pay. The amount of redundancy pay will depend on:

• how long you have been continuously employed 
• your age 
• your weekly pay

You can use our calculator to work out how much statutory redundancy pay you will receive.  Your employer may offer a more generous redundancy package as part of your employment contract.

If you are going through a redundancy or restructuring process, we can advise you on whether it has been conducted fairly and if you might have a claim for unfair dismissal.