Redundancy

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This Overview summarises the issues and provides links to relevant Practice Notes relating to redundancy, including the different definitions that apply for the purposes of (a) a statutory redundancy payment and a fair reason for dismissal (under the Employment Rights Act 1996 (ERA 1996)) and (b) collective redundancy (under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULR(C)A 1992)), the right to a redundancy payment, fair redundancy procedures, including consideration of suitable alternative employment, statutory collective consultation obligations, bumping, the right to time off to look for work, the renewal and re-engagement scheme, lay-offs and short time, the effect of death and insolvency, issues relating to redundancy policies and enhanced protection after statutory family leave.

In general, employees dismissed by reason of redundancy have rights to:

  1. •

    a statutory redundancy payment

  2. •

    the application of a fair redundancy procedure, which includes consideration of suitable alternative employment

  3. •

    reasonable time off work to look for alternative employment or arrange training

For the purposes of entitlement to a redundancy payment and fair dismissal, an employee is dismissed by reason of redundancy (see Practice Note: Definition

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