Redundancy

If you no longer need all, or as many, of your employees to carry out a particular kind of work at the location where they’re employed, this is a redundancy situation. Redundancy is a potentially fair reason for dismissal, though it is only fair if a fair procedure is followed.

To achieve a fair process, it is vital that you communicate to and consult with the employees appropriately. That rule applies on an individual basis to all redundancies, but if 20 or more employees are to be made redundant within any 90-day period, the more prescriptive ‘collective consultation’ rules apply to employers and they must be followed.

Another essential aspect to a fair redundancy procedure is that you consider suitable alternative employment for the redundant employees.

Finally, redundant employees are normally entitled to a redundancy payment. We help you to calculate what the relevant payment might be for individual employees in the redundancy calculator below.

Our guide to redundancy, along with our suggested redundancy policy and redundancy letter templates, should help you to avoid unfair redundancy dismissals.

We recommend using our guides as your starting point and to set helpful context for the way in which the templates and other documents can be used. If you’re ever unsure about how to use any of our materials, just get in touch on the contact details below.

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The content on this website has been prepared by Markel Law LLP and it’s specified partners. It’s intended as guidance only and not to be regarded as a substitute for consultation with one of our solicitors or experts, since every case will ultimately turn on its own particular facts and circumstances. We recommend that you use our materials as your starting point and be aware that you sometimes have to follow a set procedure before taking any action, especially in an employment context. If you are in any doubt, we’d suggest that you get in touch with us and we’ll talk you through your options on how to get the right legal advice.