Use of the service is subject to our terms and conditions. View our privacy policy , cookie policy , supported browsers and access your cookie settings. Search within FAQs Search. Share Twitter LinkedIn Facebook. Add a bookmark Your browser does not allow automatic adding of bookmarks. How does the law define redundancy?
You may believe that you should not have been made redundant because the tasks you were doing still need to be done, but have been given to other people to do. The important point to note is whether the work which you were employed to do is still necessary to be carried out by a single person. If it is no longer necessary for the work to be undertaken by a single person, even if it is being disbursed to a number of other people or overseas, then your job no longer exists and you are therefore redundant.
The redundancy may still be unfair, however, if you have been unfairly selected or your employer has not followed the correct redundancy process see below. You will almost certainly be redundant in these circumstances. If the place where you work, or the whole business is moving, a redundancy will arise if your employer has ceased or intends to cease to carry on the business in the specific place where you were employed. Even if there is a clause in your contract which requires you to work anywhere the employer asks you to, you may still be redundant if the business moves.
Your employer should consider, however, if it is possible for you to be moved to a new location, and your employer may still have to consider whether the redundancy selection pool should be widened to include the other sites see below.
Where a business is transferred from one employer to another, the transfer does not end the employment relationship. Usually, your contract of employment is carried over into the new business, with your existing terms intact including your old redundancy terms. If you are made redundant in connection with a transfer, either by your old employer before the transfer takes place, or by the new employer after the transfer has taken place, the employer would have to show that there was a real redundancy and that the transfer was not the only reason or the main reason for the dismissal.
They are more likely to do so when you have access to sensitive and confidential data as well as a heavy interaction with clients. There is no statutory right to appeal your redundancy. It is, however, good practice to be offered such a right. If you have a contractual dismissal policy which provides for an appeal, then this should be followed.
For more on this, please see below. It is also unlawful to have criteria based on whether employees chosen to be made redundant are part-time or pregnant, as this would be sex discrimination. If you have been unfairly selected for redundancy, you may be able to claim compensation for unfair dismissal and or discrimination. You do not need any minimum qualifying period to be able to claim compensation for discrimination. If you are in a unique role, there is no requirement for a selection pool.
Similarly, there is no requirement for a selection pool if your employer closes its whole business although there may be a requirement for a pool where an employer closes just one of its sites. For example, a pool of one employee has been held to be unfair where other employees are doing the same role.
Sometimes, the selection criteria has been discussed and agreed with a union or employee representative. Such discussion and agreement is mandatory in the case of collective redundancies. The following factors are considered reasonable and in some cases expected ,when an employer is determining a selection pool:.
If your employer fails to consider if the number of redundancies can be reduced by terminating contractors and agency workers, it does raise the question of whether or not the redundancies are genuine or necessary. If a redundancy situation exists, your employer must consult all employees who are at risk of redundancy as soon as possible, informing them of the situation and discussing with them any alternatives and the implementation of the redundancy situation.
Failure to properly consult may lead to a finding of unfair dismissal by an employment tribunal. A meaningful consultation would usually incorporate at least one meeting with you.
There is no statutory right for you to be accompanied at a meeting under a redundancy procedure, although it is good practice for employers to allow employees to be accompanied as it demonstrates an intention to act fairly. There is no maximum period of consultation, but there are minimum periods employers are required to follow depending on the number of proposed redundancies, namely An employer making a collective redundancy must consult with a recognised trade union where there is one.
If there is no recognised trade union, an employer must consult with employee representatives before issuing redundancy notices. There must also be standard individual consultation.
If your employer intends to make you redundant, there is a legal duty for them to make reasonable efforts to consider whether there are other roles available which would be suitable for you. If your employer gives no consideration as to whether there are any suitable alternative roles within the organisation, your are likely to have a claim for unfair dismissal. Whether an alternative job offered is suitable will depend on the terms of the job offered and your skills, abilities and circumstances.
Factors such as pay, status, hours and location are relevant when deciding if the new role is a suitable alternative. The role does not need to exactly mirror your old position, or even be based in the same location. The tribunals have said it may also be appropriate for a senior employee to be given the opportunity to consider a more junior role at a reduced salary. Any offer of alternative employment must be made before your current job ends.
It can be made in writing or can be verbal. It must give you enough details about the new job so you know what the difference is between your existing job and the new job. Your employer should not make assumptions about what you might consider to be a suitable alternative role e.
You should be allowed to make an informed decision for yourself. You must also be offered a trial period in the new role of 4 weeks during which you can still reject the position and claim the original redundancy if it is reasonable for you to do so.
Your employer may offer you a number of alternative jobs. Each offer must give sufficient detail and you are entitled to a trial period in each, if you wish. Develop planning and employment strategies to deal with the requirements of short-term labour fluctuations, minimise the risk of enforced redundancies and maximise alternative resourcing opportunities. Implement a communication strategy to ensure that everyone in the organisation has correct information about any redundancies.
Redundancy in the time of coronavirus Despite government intervention to try to avoid redundancies as a result of the COVID pandemic, jobs are still being lost in some organisations. For more detail on the complexities that apply as a result of the pandemic, see our Coronavirus COVID : redundancy guide. Managing redundancy and the UK legal position Redundancy can be a very challenging and upsetting situation for affected employees and the wider workforce.
It's automatically unfair to make an employee redundant for a number of reasons, including: Trade union membership or non-membership. Part-time status. Pregnancy- or maternity-related reasons. Redundancy procedures Every employer should consider having a formal redundancy procedure.
Exact procedures will vary according to the timescale and size of the redundancy programme, but organisations should follow these stages as a minimum: Planning. Identifying the pool for selection.
Seeking volunteers. Consulting employees. Selection for redundancy. Suitable alternative employment. Appeals and dismissals. Redundancy payment.
Counselling and support. Planning Organisations should always try to avoid redundancies and consider alternative approaches, such as: Natural wastage. Recruitment freezes. Stopping or reducing overtime. Offering early retirement to volunteers subject to complying with age discrimination law.
Retraining or redeployment. Offering existing employees sabbaticals and secondments. Pay freezes. Short-time working. Identifying the pool for selection The group from which employees will be selected for redundancy the selection pool must be identified carefully. It will usually consist of at least one of: Those who undertake a similar type of work.
Those who work in a particular department. Those who work at a relevant location. Those whose work has ceased or been reduced or is expected to be. Seeking volunteers After the careful planning stage, offering a voluntary redundancy package and seeking volunteers may avoid compulsory redundancies.
Consulting employees Employers are required to consult individual employees and give them reasonable warning of impending redundancy. If 20 or more employees at one establishment are to be made redundant, collective consultations with recognised trade unions or elected representatives must start within minimum time scales: At least 30 days before the notification of redundancies for dismissals of employees.
At least 45 days before the notification of redundancies for dismissals of or more. At the start of the consultation process the employer is legally obliged to give the following information to the representatives: The reason for the redundancy dismissals.
The number of proposed redundancies and their job types. The total number of employees affected. The proposed methods of selection. UK We use some essential cookies to make this website work. Accept additional cookies Reject additional cookies View cookies. Hide this message. Home Working, jobs and pensions Redundancies, dismissals and disciplinaries. Redundancy: your rights. Overview Redundancy is a form of dismissal from your job. Print entire guide.
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