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Redundancy Advice For Employees

Redundancy Advice For Employees

What is the legal definition of redundancy?

Redundancy occurs in three situations when an employee is dismissed due to:

  • the actual or intended closure of the whole business;
  • the actual or intended closure of the business at a particular workplace; or
  • a reduction in the need for employees to carry out work of a particular kind.

Closure of the business

This may be permanent or temporary, eg closure of a restaurant for refurbishment. The decision cannot be challenged unless it not genuine.

For example where a large employer closes down one outlet of a chain or one branch of a group of companies. Again the decision cannot be challenged unless it is not genuine.

Reduction of the workforce

This can arise where the employer reduces the workforce, as a whole or in specific areas, due to a downturn in business or to other need for rationalisation, eg technological advancement. The test is not whether the employer needs fewer employees but whether he needs fewer employees to do work of a particular kind and that this is attributable to the state of affairs of the business. The key point to remember is that in the first place it will be the role that is effectively redundant and not the employee. Once it has been decided that a role is redundant, the question is what should happen to the employee(s) that hold(s) that role.


Difficulties arise when the employer reorganises the way work is done, eg the introduction of a new shift pattern. Although the work remains the same, an employee dismissed in the light of such re-organisation may not necessarily be due to redundancy and the employer will have to justify the dismissal as being for some other substantial reason.

Do you feel that you have been unfairly selected for redundancy or require expert legal advice on your rights?

Our employment law experts advise employees facing individual and collective redundancies.

Contact our specialist redundancy solicitors for further information on 03456 381381Alternatively, please email your details to employment@ibblaw.co.uk.