An employee may be dismissed as redundant when a business closes down, or if the need for employees to carry out work of a particular kind has ceased or diminished or is expected to cease or diminish. When redundancies occur, the employer has a number of statutory duties towards employees, including the duty to consult them and to pay redundancy pay to those who are eligible.
- An employee may be dismissed as redundant when a business closes down, either completely or at a particular site, or if there is a diminishing need for employees at his or her organisation to carry out work of the kind that the employee is employed to do.
- Collective redundancies occur when an employer dismisses 20 or more employees as redundant at one establishment within a period of 90 days.
- Employees have the right to be consulted individually about proposed redundancies regardless of whether or not collective consultation takes place.
- The criteria for selection for redundancy must be agreed with employees or their representative and must be objective and fair.
- Employees selected for redundancy will be entitled to statutory and/or contractual notice.
- Employers who make employees redundant are under a duty to take reasonable steps to identify suitable alternative employment for those employees, either within the organisation or with an associated company.
- Employees who are under notice of redundancy and have been continuously employed for at least two years have a statutory entitlement to a reasonable amount of paid time off to look for another job or arrange training.
- A redundant employee will be able to present a complaint of unfair dismissal to an employment tribunal subject to him or her having a minimum of two year’s continuous service.
- An employee who is dismissed by reason of redundancy is entitled to a statutory redundancy payment provided certain conditions are met.
- Local authority employers have limited discretion to enhance statutory redundancy payments.
- Appropriate training should be provided within an organisation for all managers who are likely to be involved in the redundancy process.
An employer may only lay employees off without pay or place them on short time working, i.e. where they receive less than half a week’s pay, if their contracts of employment contain a clause authorising the employer to withhold or reduce pay in these circumstances.