Redundancy pack

Redundancy occurs when an employer decides to terminate an employee's contract because the job position is no longer necessary or the business undergoes a significant restructuring. Redundancy is not a dismissal due to the employee's performance or conduct; rather, it is a result of changes in the business environment.

Key points about redundancy include:

1. Business Changes: Redundancy may occur due to various reasons, such as technological advancements, organisational restructuring, mergers, a decline in business, or the closure of a particular department or location.

2. No Fault of the Employee: Redundancy is not the fault of the employee. It is a situation where the job role itself is no longer required, and the decision is typically made based on the needs of the business.

3. Fair and Transparent Procedures: Employers are usually required to follow fair and transparent procedures when implementing redundancies. This may include consultation with employees, exploring alternatives to redundancy, providing notice, and offering suitable redeployment opportunities within the organisation.

4. Consultation: Employers are often obligated to consult with employees and, in some cases, with employee representatives or trade unions before making a decision on redundancy. This allows for open communication and the exploration of potential alternatives.

5. Severance Pay and Entitlements: In many jurisdictions, employees made redundant may be entitled to severance pay or redundancy pay. The amount often depends on factors such as the length of service and local employment laws.

6. Redundancy Selection Criteria: If multiple employees hold similar roles, employers may establish fair and non-discriminatory criteria for selecting employees for redundancy. Common criteria include skills, performance, and length of service.

It's important for employers to handle redundancy situations with sensitivity and in compliance with employment laws. Employees affected by redundancy may have rights to compensation, notice periods, or support for finding alternative employment. Seeking legal advice and following established procedures can help both employers and employees navigate redundancy situations.

• Redundancy is a form of dismissal and should only be used as a last resort when there is a genuine business need, such as a downturn in business or restructuring.

• Employers must follow a fair and objective process when selecting employees for redundancy, and ensure that the selection criteria used are objective and non-discriminatory.

• Employers must consult with employees who are at risk of redundancy and provide them with information about the reasons for the redundancy, the selection process, and the alternatives to redundancy.

• Employers must consider any alternatives to redundancy, such as redeployment, retraining, or reducing working hours, and provide employees with suitable alternative employment if possible.

• Employees who are selected for redundancy have the right to a minimum notice period and may be entitled to redundancy pay, depending on their length of service and other factors.

• Employers should consider any reasonable requests for time off for job hunting or training during the notice period.

• Employers should ensure that any redundancy process is carried out in a non-discriminatory manner and does not unfairly disadvantage any particular groups of employees, such as disabled employees or pregnant employees.

• Employers should provide support and assistance to employees who are affected by redundancy, such as counseling or outplacement services.

It is important for employers to follow a fair and objective process when handling redundancy to avoid any potential legal challenges and to protect the welfare and rights of their employees.

There are some key legal and procedural differences regarding redundancy between Scotland and Northern Ireland compared to England and Wales:

• Consultation period:

  • England & Wales: Minimum consultation period is 45 days for redundancies of 100 or more employees.

  • Scotland & Northern Ireland: Consultation period is 90 days for similar situations.

• Statutory dismissal procedure:

  • England & Wales: The statutory dismissal procedure for individual redundancies does not apply.

  • Northern Ireland: The statutory dismissal procedure with its three-step process (grounds for dismissal, meeting, and appeal) still applies for individual redundancies.