Redundancy is when an employer has a reduced requirement for employees of a particular kind at a particular place of work. An employer does not have to show that there is a decrease in work or even a need to save money; redundancy is often the result of reduced work, but can also be a result of reorganisation, outsourcing work, or closure of a site.

What makes redundancy unique among the potentially fair reasons for dismissal is that it is the “job” that is being dispensed with, rather than the employee personally.

Get the right legal advice to make sure your redundancy is fair legal and handled as it should be

With redundancy comes a period of financial uncertainty and emotional torment. It is essential that that your employer has followed out the correct procedure and that the process has been handled with your legal rights in mind. For example, employers must issue employees with a warning of potential redundancy, and then have a period of consultation. They must also take steps to re-deploy, give redundancy pay due and give the correct amount of notice. The selection process for redundancy must be fair and must not be based on gender, race, disability, religion, previous conflict or type of contract. Thus, redundancy is a potentially fair reason for dismissal

Qualifying for Redundancy

An employee is dismissed for redundancy, and may qualify for redundancy pay, if the following conditions are satisfied:

  • The employer has ceased, or intends to cease continuing the business, or
  • The requirements for employees to perform work of a specific type or to conduct it at the location in which they are employed has ceased or diminished.


A redundancy therefore applies where the workforce is reorganised and there is:

  • Less work, and/or;
  • Changes in conditions that result in the new job being quite different from the old one, and/or;
  • Work put out to contract by the employer – in which case there may be a TUPE transfer.


Redundancy can leave you and your family with a worrying period of financial uncertainty ahead. If you are concerned about being made redundant or have been made redundant and have doubts to whether your employer has fulfilled their legal obligations in the redundancy process then contact EAD solicitors employment department.

EAD was the winner of the Employment Law Award at the 2013 Liverpool Law Society Legal Awards. Call us on 0151 735 1000 and speak to our award winning Liverpool employment solicitors.


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