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Redundancy is a dismissal that occurs because the employer’s business, or its requirements for a particular type of work, ceases either generally or in the specific location where the employee works. The reason for the dismissal is effectively unrelated to the individual’s performance but is the result of commercial decision-making by the employer or some specific economic circumstances that an employer faces.

Redundancies entitle employees to various statutory rights and, in the case of collective redundancies, involve rigorous requirements for consultation with the work force. This means that redundancies have the potential to expose the employer to liability stemming from successful employee challenges and claims. Careful planning for and structuring of a redundancy process is therefore required. This note provides a brief introduction to redundancy. The supporting guidance notes in this sub-topic provide further guidance on the specific important aspects of the redundancy process.

The law to be considered depends on whether the redundancy arises as part of a collective redundancy situation or is simply an individual redundancy.