Redundancy definition

What does Redundancy mean?

Statutory redundancy payments, unfair dismissal: redundancy is where the employer stops doing the work the employee does, closes the workplace, or where its need for that work (generally or in that workplace) diminishes or ceases. Collective redundancy consultation: redundancy is dismissal for any reason not related to the individual concerned.


When an employee's role has diminished or disappeared such that it is no longer required by the employer.
The term redundancy is a statutory definition found at s 139 (1) of the Employment Rights Act 1996. A redundancy situation can arise when an employer ceases to carry on (a) the business (b) the business at the current place of work (c) the particular work for which the employee is employed or (d) the particular work at the place where the employee is employed. It is lawful for an employer to terminate an employee's employment on grounds of redundancy if the redundancy situation falls in one of the above categories.

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