Redundancy
Redundancy occurs when an employer needs to reduce their workforce because a role is no longer needed, not due to employee performance.
Redundancy is a form of dismissal that happens when an employer no longer needs certain roles—due to business closure, workplace relocation, reduced workload, or restructuring. It's about the role being eliminated, not the person's performance.
Employees with two or more years' service are entitled to statutory redundancy pay: half a week's pay per year of service under 22, one week's pay per year between 22-40, and 1.5 weeks' pay per year over 41. Many employers offer enhanced redundancy packages above statutory minimum.
Employers must follow fair procedures including consultation, fair selection criteria, and consideration of alternative employment within the organisation. If you believe the redundancy process was unfair, you may have grounds for a tribunal claim.
Key Points
- About the role being eliminated, not personal performance
- Statutory redundancy pay after 2 years' service
- Employers must follow fair selection and consultation procedures
- You may be entitled to time off to look for work
- Enhanced redundancy terms may be negotiable
Frequently Asked Questions
Can I challenge my redundancy selection?
If you believe the selection criteria were unfair or discriminatory, or proper procedures weren't followed, you may have grounds for an employment tribunal claim. Seek legal advice.
What happens to my benefits when made redundant?
Your benefits end on your termination date. You may be able to continue private healthcare at your own cost. Check whether any share schemes or bonus payments are affected by redundancy timing.