Reason for dismissal—redundancy
Reason for dismissal—redundancy

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Reason for dismissal—redundancy
  • The redundancy reason
  • Redundancy situations
  • The decision to create a redundancy situation
  • Whether redundancy was the reason for dismissal
  • Automatically unfair redundancy
  • Relationship with redundancy payments
  • Unfair redundancy

Redundancy is a potentially fair statutory reason for dismissal.

However, as with other potentially fair reasons, the fairness of a redundancy dismissal is to be determined by the test of whether an employer's decision to dismiss for that reason falls within the band of reasonable responses of a reasonable employer in those circumstances and in that line of business. Failure to follow a fair procedure when dismissing an employee for redundancy will normally render the dismissal unfair.

If an employer is proposing to dismiss as redundant 20 or more employees at one establishment within any period of 90 days or less, there is also a statutory obligation to consult collectively (see Practice Notes: Collective redundancy—the triggers for the statutory consultation obligations and Collective redundancy—statutory information and consultation obligations).

This Practice Note provides guidance on:

  1. the redundancy reason (see: The redundancy reason)

  2. redundancy situations (see: Redundancy situations)

  3. the decision to create a redundancy situation (see: The decision to create a redundancy situation)

  4. whether redundancy is the reason for dismissal (see: Whether redundancy was the reason for dismissal)

  5. where a redundancy is automatically unfair (see: Automatically unfair redundancy)

  6. what constitutes an unfair redundancy (see: Unfair redundancy)

For more detailed guidance on a fair procedure to be followed where statutory collective consultation obligations apply, or it is otherwise necessary to consult with union or other employee representatives, see