EMPLOYEE INFORMATION
REDUNDANCY
Redundancy occurs when an employer:
• 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.
When is redundancy lawful?
Redundancy is a potentially fair reason for dismissal, but only if:
-
there is a genuine need to reduce staff, and
-
the employer follows a fair redundancy procedure.
If you have at least 2 years of continuous service, the full procedure must be followed.
Failure to do so often makes the dismissal unfair.
A fair redundancy procedure includes:
• consultation,
• fair and objective selection criteria,
• consideration of alternative roles,
• the right of appeal.
Suitable alternative employment
Your employer should offer you suitable alternative work if it exists, either within the organisation or a connected company.
Special protection for employees on family leave
Employees on:
• maternity leave,
• adoption leave,
• shared parental leave,
must be offered suitable alternative roles before anyone else.
If you refuse
If you unreasonably refuse a suitable alternative role, you may lose your right to statutory redundancy pay.
4‑week trial period
You are entitled to a 4‑week trial period in any alternative role.
If you decide the role is unsuitable, you keep your right to redundancy pay.
Time off to look for work
If you have 2 years’ service by the end of your notice period, you are entitled to reasonable paid time off to:
• look for new work,
• attend interviews,
• undertake training.
The employer must pay up to 40% of a week’s pay for this time.

