What Is Redundancy?

Before outlining the correct redundancy process, employers and employees alike need to understand what redundancy means.

Redundancy is when you dismiss an employee because the company no longer needs anyone to do their job. There are various motives behind companies making redundancies. Some of the primary examples are because your company is:

  • Closing down or changing its location
  • Changing the way it works, for instance, relying more on machinery
  • Changing the service/product it offers

When an employer makes an employee redundant, you must demonstrate that the job will no longer exist.

Five-Step Redundancy Process

The set redundancy process exists to ensure that companies have made every effort to treat employees fairly:

2. Identify The Employees You Will Make Redundant

If you have explored alternatives to avoid redundancy, and you decide the redundancy process is still a must, then you need to identify which employees must be made redundant.

When deciding which employees are to be made redundant, it’s of vital importance that the reason does not fall under the unfair selection criteria. Examples of unfair selection criteria include pregnancy, fixed or part-time employees, or someone’s age or race.

When making people redundant, you need to ensure you select employees fairly and don’t discriminate. The fair selection criteria include:

  • An employee’s skills, qualifications, and natural ability
  • Standard of work and performance
  • Attendance
  • Disciplinary record
  • Length of service (last in, first out) if it’s justified and does not discriminate against a particular group
Company thts is holding a redundancy consultation
Redundancy consultation process flowchart 1
Former employee getting his redundancy pay
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