Dismissal – Redundancy

A dismiss al is redund ancy when you terminate an employees contract because there is a requirement to lose a particular number of employees. Reasons why you need to make someone redundant include: saving money; overcapacity; branch, office or factory closure; or a lack of need for the job.

• Redundancy means that the job no longer exists.
• If an employee is dismissed and a direct replacement is recruited in place of the employee, then it is not a reasonable case of redundancy.
• If an employee is dismissed and an existing employee moves into that job, it is a reasonable case of redundancy, as long as no vacancy or opening exists for the redundant job.
• If an employee is dismissed and a new employee is recruited to fill a different post at the same time, this is a reasonable case of redundancy, as long as the jobs are different. You could face an unfair dismissal claim if you recruit someone to fill a job that has a different job title but is essentially the same job.

Redundancy procedures

• You must make sure you select the employees you are to make redundant fairly.
• You should warn employees about any possible redundancies.
• You should take reasonable steps to redeploy employees facing redundancy.
• You give the correct amount of notice and pay the redundancy pay that is due.

Voluntary redundancies

• When employees can volunteer to be made redundant, minimising the need to make other employees redundant.
• Voluntary redundancies are still subject to the same payments and regulations as non-voluntary redundancies.

Research & advice

With all matters of such sensitivity, we suggest you carry out further research before making decisions; in difficult cases, contact an employment consultant or solicit or.

More information

• Dismissal - Dismissal, Sacking and Redundancy
• Dismissal – Redundancy
• Dismissal – Redundancy Notice Period
• Dismissal – Calculating Redundancy Pay
• Age Discrimination – Training, Promotion, Dismissal & Redundancy

Downloads

• Redundancy Handling (Acas)