Redundancy occurs when an employer:

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• closes the business,

• closes a particular department or location, or

• reduces the number of employees doing a particular type of work.

 

In these situations, you may be dismissed for redundancy and — if eligible — entitled to statutory redundancy pay.

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When is redundancy lawful?

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Redundancy is a potentially fair reason for dismissal, but only if:

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1. there is a genuine need to reduce staff, and

2. the employer follows a fair redundancy procedure.

 

If you have at least 2 years of continuous service, the full procedure must be followed.

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Failure to do so often makes the dismissal unfair.

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A fair redundancy procedure includes:

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• consultation,

• fair and objective selection criteria,

• consideration of alternative roles,

• the right of appeal.

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Suitable alternative employment

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Your employer should offer you suitable alternative work if it exists, either within the organisation or a connected company.

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Special protection for employees on family leave

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Employees on:

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• maternity leave,

• adoption leave,

• shared parental leave,

must be offered suitable alternative roles before anyone else.

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If you refuse

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If you unreasonably refuse a suitable alternative role, you may lose your right to statutory redundancy pay.

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4‑week trial period

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You are entitled to a 4‑week trial period in any alternative role.

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If you decide the role is unsuitable, you keep your right to redundancy pay.

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Time off to look for work

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If you have 2 years’ service by the end of your notice period, you are entitled to reasonable paid time off to:

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• look for new work,

• attend interviews,

• undertake training.

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The employer must pay up to 40% of a week’s pay for this time.