Quick Links

Although it’s often used to describe somebody losing their job, redundancy has a specific legal meaning.

If an employee’s post has become redundant:

If the post is not genuinely redundant, or a fair procedure has not been carried out:

What is a genuine redundancy situation?

Under the Employment Rights Act 1996, “redundancy” occurs only in the following three circumstances:

Has a fair procedure been carried out?

Even in genuine redundancy situations, the employer must carry out a fair procedure that should involve:

Collective consultancy obligations

If 20 or more employees are going to be made redundant within a 90-day period, the employer must:

The penalty for failing to inform and consult is potentially a tribunal award of 90 days’ pay for each redundant employee. Failure to provide the notification the the Secretary of State is a criminal offence.

How do redundancy payments work?

If the employee has been employed for two years continuously, he or she will be entitled to a tax-free statutory redundancy payment.  The amount depends on their age and length of time in employment, calculated as follows:

A week’s pay is calculated up to a weekly maximum wage which usually changes each year. The maximum amount of years calculated is 20.

Alternative employment – the facts

An employer must consider suitable alternative employment for a redundant employee.  Not doing so may make the dismissal unfair.

‘Suitable’ depends on the employee’s personal circumstances, and aspects like these should all be considered:

What happens if an employee refuses an alternative employment offer?

If the employer offers suitable employment and the employee unreasonably refuses to take it:

For employees, it is therefore important to determine if they are unreasonably refusing an offer.

Alternatives to redundancy

Before starting redundancy proceedings, an employer may consider alternative cost-saving measures such as:

Spratt Endicott Key Statistics

Positive Client Feedback


Specialist Lawyers


Ranked in Legal 500

Top Tier

Recommended Lawyers in Legal 500


Our People

  • Carol Shaw
  • Director, Head of Employment Law
  • 01295 204140
  • Email
  • Lydia Mills
  • Trainee Solicitor
  • 01295 204132
  • Email
  • Philomena Price
  • Director
  • 01295 204147
  • Email

Latest Posts

View All

Getting In Touch

To find out more about our Redundancy services, please contact Carol Shaw on 01295 204140 or email

Get in touch

Please complete your details and we’ll be in touch. Or, call us on 0330 0580 250.

Get in touch

  • This field is for validation purposes and should be left unchanged.