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Redundancy - An Employment Law Guide

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07 July 2020

This guide explores the basics of redundancy and offers guidance on how to avoid common pitfalls.

Redundancy is a potentially fair reason for dismissal. For the purposes of unfair dismissal and redundancy payments, an employee becomes redundant in their
current position if it is no longer needed because:

  • The business in which the employee works ceases to operate;
  • The place of business where the employee works ceases to operate;
  • The business needs fewer people to carry out work of a particular kind.

Although redundancy may be inevitable in some circumstances, it is still open for an employment tribunal to find that that an employee was unfairly dismissed by reason of redundancy. Therefore it is vital that you follow a fair procedure when making employees redundant.

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