Redundancy
Redundancy occurs when your employer needs to reduce its workforce because the business has changed or no longer needs employees to do a particular type of work. Redundancy may be the result of restructuring, technological change, economic pressure, or the closure of a workplace.
This page explains your rights under UK employment law and how DC Employment Solicitors can help you if you are facing redundancy.
What is Redundancy?
You may be dismissed by reason of redundancy if:
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your employer has ceased (or intends to cease) to carry on business in the place where you work,
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the employer’s need for employees to perform a particular type of work has diminished or ceased, or
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the employer’s need for employees to carry out work of a particular kind has reduced or changed.
Your employer must genuinely believe that a redundancy situation exists, redundancy cannot be used as a pretext to dismiss you unfairly.
What Is Consultation?
Why Consultation Matters
If your job is at risk, your employer should consult you about the redundancy. Consultation means a genuine two-way discussion about:
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why redundancies are proposed
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ways to avoid or reduce redundancies
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how selection for redundancy will be carried out
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whether there are alternative roles available
Individual and Collective Consultation
If a large number of employees are affected, your employer must undertake collective consultation with employee representatives or a trade union.
Even when only one or a few roles are at risk, meaningful individual consultation is still required. Consultation should take place before any final decision is made, and should not be a box-ticking exercise, your input should be genuinely considered.
What Makes a Fair Selection Process?
Where more than one person is at risk, your employer must use objective, non-discriminatory selection criteria to decide who will be made redundant. Common lawful criteria include:
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skills and qualifications
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performance records
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attendance (excluding protected leave)
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disciplinary record (applied fairly)
Selection must not be discriminatory (for example on grounds of age, sex, disability, race, pregnancy, religion or sexual orientation). If you believe selection was biased or arbitrary, you should seek advice.
What is Suitable Alternative Employment?
Your employer should consider offering you a suitable alternative job if one is available. This might include:
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a different role at the same site
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a role in a different location (if reasonable)
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a role at a similar or lower grade
If a suitable alternative job is offered and you unreasonably refuse it, you may lose entitlement to redundancy pay.
How Much Pay and Notice Will I Get?
Statutory Redundancy Pay
If you have sufficient qualifying service, you are likely entitled to statutory redundancy pay. The amount depends on:
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your age
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your length of continuous service
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your weekly pay (subject to a statutory cap)
This is in addition to any notice pay you are entitled to.
Notice Period
Unless your contract provides a longer notice period, your employer must give you the statutory minimum notice. Alternatively, your employer may choose to pay you in lieu of notice.
Was My Redundancy Unfair?
If the redundancy process was not genuine or fair, you may have a claim for unfair dismissal (provided you have the necessary qualifying service).
Examples of potentially unfair redundancy dismissals include:
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selection criteria that are unreasonable or discriminatory
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lack of genuine consultation
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failure to consider alternative roles
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pre-determined decisions before consultation
If you believe your redundancy was unfair, you may be able to challenge it through a grievance first, and then the Employment Tribunal if necessary.
Was My Redundancy Discriminatory?
Redundancy must be applied without unlawful discrimination. For example:
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selection criteria must not indirectly disadvantage groups with protected characteristics
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disability related absence should be considered with appropriate adjustments
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pregnancy and family-related leave should not disadvantage an employee in redundancy decisions
If discrimination played a part in your redundancy, you may have a separate discrimination claim in addition to or instead of an unfair dismissal claim.
What is a Protective Award?
If your employer failed to consult you properly, or if collective consultation obligations were not met, you may be entitled to a protective award. This is a financial award designed to reflect the failure to consult.
How We Can Help
Redundancy can be a stressful and complex experience. Our solicitors advise employees on:
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whether a redundancy situation is genuine
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fairness of procedure and selection
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entitlement to statutory redundancy pay
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potential claims for unfair dismissal or discrimination
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protective awards and tribunal advice
We provide clear, practical advice tailored to your circumstances.
CONTACT US
For enquiries, legal advice, or case evaluations, feel free to reach out to us anytime. Fill out the form below and a member of the team will be in touch as soon as possible.