Redundancy is a potentially fair reason for dismissal. For the purposes of unfair dismissal and redundancy payments, an employee becomes redundant in his current position if the position is no longer needed because:

  •  The business in which the employee works ceases to operate;
  •  The place of business where the employee works ceases to operate;
  •  The business needs fewer people to carry out work of a particular kind.


Although redundancy may be inevitable in some circumstances, it is still open for an employment tribunal to find that that an employee was unfairly dismissed by reason of redundancy. Therefore it is vital that a fair procedure is followed when making employees redundant.

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  •  Consultation process
  •  Fair procedure
  •  Redundancy pay

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