Employment law redundancy

Redundancy occurs when an employer needs to dismiss one or more employees because there are, or are expected to be, fewer jobs, or the need for a particular job no longer exists. Redundancies are more common in the current changing economic environment as firms or business units close, re-organise or are taken over and employers decide to reduce their workforce.

Under UK employment law, redundancy is a form of dismissal. However, it is a special type of dismissal to which different rules and requirements apply. If not carried out in accordance with the requirements of employment law, redundancy could lead to a claim from wrongful or unfair dismissal.

Firstly, it is important that the redundancy is a valid redundancy and not merely another form of dismissal couched in the terms of a redundancy. Under employment law, redundancy can occur if the requirement for the work you are doing has either ceased or is diminishing. The situations in which this generally occurs include:

• Your employer’s business, or the business unit in which your job was located, has ceased operating
• Your employer’s business had downturned and no longer has enough work for you to do
• Your employer's business is taken over
• Due to a restructure or re-organisation your job is no longer required
• The introduction of new technology means that your skills are no longer required
• Your employer’s business, or the work you are doing, moves to another area

Second, the redundancy must be carried out in accordance with the law. Those being made redundant have legal rights:

• To be told and consulted in advance.
• To be selected according to an objectively fair process
• To be given reasons for the redundancy
• To be offered alternative employment wherever possible
• To try out any alternative offer of suitable work for four weeks without losing your right to a redundancy payment.
• To take reasonable time off, with pay, to look for alternative work or training. What is reasonable depends on the nature of your work.
• Payment of entitlements

If you would like to obtain legal advice on your redundancy, then Contact Law can put you in touch with a local specialist redundancy solicitor free of charge. So, if you have any questions or would like our help in finding local employment law redundancy solicitors please call us at 0800 1777 162 or complete the web-form above.

Last Updated on 24/11/2011