What does redundancy mean?

Book your free initial call

    We endeavour to make an initial response to all enquiries within 24 hours but please be aware that on some occasions due to prior commitments or volume of calls we will not be able to respond in that time frame. We also operate a 48 hour return policy. This return policy means that if we have not responded with 48 hours of your initial enquiry we are unable to do so due to current workloads and we will destroy your data accordingly. This policy ensures you are not left waiting and have the certainty that your data is not compromised. In most instances however we are able to make contact within a 24 hour time frame. Please note our free initial advice service is available to clients at our total discretion and if your case is of a complex nature we may not be able to offer you a free consultation. However in these instances we will advise you what the charge would be for an initial fixed fee consultation.
  • (view our privacy statement)
  • This field is for validation purposes and should be left unchanged.

Redundancy for the purposes of the reason for dismissal has a statutory meaning found in s139 ERA 1996. In simple terms a redundancy occurs where an employee is dismissed because his employer has ceased or intends to cease to carry on in business altogether or at that particular location. It can also occur where there is a reduction in the number of staff needed to carry out work of a particular kind or at a particular location which is a reduction in head count rather than all out closure.

In redundancy situations, employers need to inform the employees at the earliest opportunity and consult with them. Those employees with two years service will be entitled to a statutory redundancy payment and all employees are entitled to receive notice of dismissal.

Where there are more than 20 redundancies proposed at any one establishment there is a more stringent procedure that must be followed and set periods of consultation. This is called collective consultation.

If you do not feel the process followed has been fair or that you have been unfairly selected you should seek advice as if you wish to challenge this, it would be an unfair dismissal claim with a time limit of three months from the effective date of termination.

Written by
Edward Aston
14th January 2014