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Article Index
Redundancy
Genuinely Redundant?
The Redundancy Process
Avoiding Redundancies
Choosing the People
Voluntary Redundancy
Statutory Payments
Normal Payment Practice
Employees' Rights
Keeping Up Morale

Redundancy

1. Genuinely Redundant?

It is the job, not the person, that is redundant. People unfairly dismissed under the pretence of redundancy can ask an employment tribunal to order a compensation award or reinstatement.

1.1 Genuine redundancy only arises when an employee is dismissed wholly (or mainly) for one or more of these reasons:

  • The business stops doing what the person was employed to do (eg it closes down).
  • The business stops doing it where the employee was employed to do it.
  • There is a reduced need for people in the employee's category doing that kind of work in that place.

1.2 Most employees who are made redundant are entitled not to be dismissed unfairly.

  • Part-time and fixed-term workers enjoy the same protection as full-time employees.
  • Employees with less than one year's service do not have this right, unless unlawful discrimination is involved in the dismissal.
  • Employees with two years' service or more usually qualify for redundancy pay (see 6).

1.3 Employees cannot usually sign away their rights to statutory redundancy payments.

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