top of page

EMPLOYER INFORMATION

REDUNDANCY

Redundancy may arise when:

​

• you close your business or a specific department,

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

​

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

​

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

​

  1. there is a genuine redundancy situation, and

  2. the employer follows a fair procedure.

​

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

​

1. When is redundancy genuine?

​

A redundancy situation exists when:

​

• the work has ceased or diminished,

• the business is reorganising,

• fewer employees are needed,

• the business or part of it is closing.

​

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

​

2. Fair redundancy procedure

​

A fair process includes:

​

a) Consultation

​

• individual or collective,

• meaningful and in good faith,

• allowing questions and feedback.

​

b) Fair selection criteria

​

Criteria must be:

​

• objective,

• measurable,

• consistently applied,

• non‑discriminatory.

​

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

​

c) Consideration of alternative employment

​

Employers must explore suitable alternative roles.

​

d) Right of appeal

​

Employees must be allowed to challenge the decision.

​

3. Suitable alternative employment

​

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

​

Special protection for employees on family leave

​

Employees on:

​

• maternity leave,

• adoption leave,

• shared parental leave,

​

must be given priority for suitable alternative roles.

​

Refusal of alternative work

​

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

​

4. 4‑week trial period

​

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

​

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

​

5. Time off to look for work

​

Employees with 2 years’ continuous service are entitled to:

​

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

• paid at 40% of a week’s pay.

​

6. How I help employers

​

• 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

Untitled design_edited_edited.png
qt=q-95.webp

Marta Inkin (MCILEX)
UK Employment Law Consultant
Solidum Solicitors,
316 Northolt Rd,
South Harrow,
Harrow HA2 8EE
Website: martainkin.co.uk
Telephone: 0207 036 1900

Solicitors Regulation Authority. SRA number: 634883

regulated_logo.webp
pngegg.png
Untitled design_edited.png
blob.png

© Nikni Designs Ltd 2024

bottom of page