Redundancy

Topic Index
Overview
Meaning of redundancy
Automatically unfair dismissal
Ordinary unfair dismissal
Consultation: multiple redundancies
Consultation: individual
Selection for redundancy
Alternative work
Statutory redundancy payments
Resources

Overview

 

  • A far from uncommon comment is ‘I’m not dismissing the employee, I’m just making him redundant’. Wrong – you are dismissing him or her, but the reason for dismissal is redundancy.
  • The golden rules are: select fairly, consult meaningfully and offer alternative work.
  • Dismissed employees, with 2 or more years' service are entitled to statutory redundancy payments, calculated according to age, length of service and average weekly earnings.
  • Employees with 2 years' service can complain if they believe they are unfairly dismissed for redundancy. 
  • An employee who has completed at least 2 years' service is entitled to a reasonable amount of paid time off during working hours to seek alternative employment if he is to be dismissed by reason of redundancy.
  • Selection for redundancy on certain grounds is automatically unfair.
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