Redundancy may arise when:

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• you close your business or a specific department,

• you reduce the number of employees doing a particular type of work.

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In such cases, you may dismiss employees for redundancy, giving them the right to statutory redundancy pay (if eligible).

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

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1. there is a genuine redundancy situation, and

2. the employer follows a fair procedure.

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Failure to follow the correct process usually results in an unfair dismissal finding.

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1. When is redundancy genuine?

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A redundancy situation exists when:

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• the work has ceased or diminished,

• the business is reorganising,

• fewer employees are needed,

• the business or part of it is closing.

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Tribunals will examine whether the redundancy was genuine and not a pretext.

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2. Fair redundancy procedure

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A fair process includes:

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a) Consultation

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• individual or collective,

• meaningful and in good faith,

• allowing questions and feedback.

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b) Fair selection criteria

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Criteria must be:

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• objective,

• measurable,

• consistently applied,

• non‑discriminatory.

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Examples: skills, qualifications, performance, attendance (excluding disability‑related or parental leave).

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c) Consideration of alternative employment

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Employers must explore suitable alternative roles.

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d) Right of appeal

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Employees must be allowed to challenge the decision.

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3. Suitable alternative employment

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Employers must offer suitable alternative roles where available — including in associated companies.

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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,

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must be given priority for suitable alternative roles.

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Refusal of alternative work

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If an employee unreasonably refuses suitable alternative employment, they may lose their right to redundancy pay.

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4. 4‑week trial period

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

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If the role is unsuitable, they retain their redundancy rights.

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5. Time off to look for work

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Employees with 2 years’ continuous service are entitled to:

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• reasonable paid time off to look for work or training,

• paid at 40% of a week’s pay.

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6. How I help employers

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• assessing whether redundancy is genuine

• preparing consultation plans and documentation

• advising on fair selection criteria

• supporting meetings with employees

• representing employers in redundancy‑related disputes