Redundancy

Understanding redundancy

Employers are entitled to make employees redundant, but there must be a genuine situation where redundancy is required.

This must be either:

• Closure of the business
• Closure of a particular site
• Reduced need for employees to do work of a particular kind

If none of the above have occurred, you could challenge your dismissal as being unfair.

Your employer should only select you for redundancy if you are affected by a genuine redundancy situation. When there are still some roles available, your employer should apply suitable selection criteria to decide which employees will be selected for redundancy.

Selection criteria that discriminate on grounds of sex, race, age, disability, religion or belief, sexual orientation, fixed or part time status, marriage or civil partnership, or pregnancy should not be used and if they are and you are impacted you should seek advice immediately.

Depending on the number of employees affected, your employer will need to consult for a certain period of time and may have to consult collectively as well as individually. It is important that you are allowed to challenge any decisions relating to the situation and put forward any ideas you may have to save your job. Your employer should also consider any suitable alternative vacancies that may be available.

If the decision is made to make you redundant you should refer to your contract for your entitlements. As a minimum, you are entitled to notice pay (at least one week for each years of service unless more is provided in your contract), wages up to the termination date, and any accrued untaken holiday pay. If you have at least 2 years’ service, you are also entitled to redundancy pay which is calculated based on your age, length of service and weekly pay.