Redundancy

Redundancy

This Overview summarises the issues and provides links to relevant Practice Notes relating to redundancy, including the different definitions that apply for the purposes of (a) a statutory redundancy payment and a fair reason for dismissal and (b) collective redundancies, the right to a redundancy payment, fair redundancy procedures, including consideration of suitable alternative employment, statutory collective consultation obligations, bumping, the right to time off to look for work, the renewal and re-engagement scheme, lay-offs and short time, the effect of death and insolvency and issues relating to redundancy policies.

In general, employees dismissed by reason of redundancy have rights to:

•
a statutory redundancy payment
•
the application of a fair redundancy procedure, which includes consideration of suitable alternative employment
•
reasonable time off work to look for alternative employment or arrange training

For the purposes of entitlement to a redundancy payment, and fair dismissal, an employee is dismissed by reason of redundancy (see Practice Note: Definition of redundancy—Redundancy payment entitlement, and fair reason for dismissal) if the reason for dismissal is wholly or mainly attributable to:

•
the employer ceasing or proposing to cease carrying on

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