Redundancy

Author: Fiona Cuming

Updating authors: Max Winthrop and Zuraida Curtis

Summary

• Employment law provides two different definitions of redundancy. (See Overview)
• There is a legal definition of redundancy that is relevant for the purposes of determining whether or not a dismissal is for redundancy and potentially fair and whether or not the employee is entitled to a redundancy payment. (See When is an employee's role redundant?)
• While redundancy is a potentially fair reason for dismissal, the fact that an employee is dismissed for redundancy does not necessarily mean that the dismissal is fair. (See Fair redundancy)
• If a tribunal is satisfied that the reason for dismissal is redundancy, it will go on to consider whether or not the employer followed a fair procedure. (See Redundancy procedure)
• For an employee to be eligible for a redundancy payment, certain criteria must be satisfied. (See The right to a statutory redundancy payment)
• An employee may lose their right to a redundancy payment in certain circumstances. (See Exclusions from redundancy payments)
• Statutory redundancy payments are calculated by reference to a statutory formula. (See Calculating a statutory redundancy payment)
• Making enhanced redundancy payments will not be unlawful under the age discrimination legislation provided that the scheme mirrors the statutory redundancy scheme. (See Enhanced redundancy payments)
• Subject to satisfying the qualifying criteria, an employee may bring a claim in the employment tribunal in respect of their right to a redundancy payment and/or their dismissal on the ground of redundancy. (See Remedies and enforcement)