Redundancy Processes

Managing workplace transitions by understanding of your redundancy process.


Is it a genuine Redundancy situation?

Redundancy should only be used in certain situations that are ‘wholly or partly attributable’ to one of three situations:

  1. A complete closure of the business; 
  2. A closure of a particular office or workplace; or 
  3. where there is a reduced requirement for work of a particular kind in a particular location  

If the situation does not fit within these scenarios, then specific advice should be sought to consider the next steps.

Your right to be informed and consulted

Your employer must consult with you at least once before making you redundant. 

Where 20 or more employees are being made redundant over a period of 90 days or less, special rules apply. The employer may hold collective consultations with elected employee representatives, or your trade union if applicable.

Selection for Redundancy

You may be part of a ‘selection pool’ of potentially redundant employees. Your employer may use certain criteria to make a decision on who to select for redundancy. 

The selection criteria must be objective and non-discriminatory. This means you cannot be selected for redundancy in the following circumstances:

  • Because of a ‘protected characteristic’, such as your age or sex
  • Because you are pregnant or on maternity leave
  • Because you are a member of a trade union
  • Because you have raised concerns about working time or minimum wage 
  • Because you have blown the whistle
Confirming the decision

If no alternative to redundancy can be found during the consultation, the employer will need to communicate their decision to make you redundant in a final meeting. You have the right to appeal the decision made.

What payment am I entitled to?

If you are made redundant, you are entitled to certain payments. If the employer does not make these payments, or pays you a lesser amount to that you are owed, you may have a claim for ‘wrongful’ dismissal or breach of contract. 

You will be entitled to:

  • Notice pay
  • Statutory redundancy pay
  • Accrued but untaken holiday pay

You will also be entitled to pay in lieu of any accrued but untaken holiday outstanding as at the date their employment ends.

Suitable alternative employment

One way for your employer to avoid making you redundant is to offer you suitable alternative employment that starts within four weeks of your current role ending. You are also entitled to a four-week trial period.

If you feel the alternative role is not suitable for you, you will need to tell your employer in writing. The employer may feel differently and refuse to pay your redundancy pay, in which case it is important to seek advice.

What do I do if I am offered a Settlement Agreement?

A settlement agreement is a legally binding agreement between you and your employer, usually providing a settlement payment in exchange for your agreement not to pursue any employment-related claims.

You are obliged to receive legal advice from an independent advisor on the terms of a settlement agreement before you sign. It is possible to negotiate the terms of a settlement agreement.

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