Redundancy is when you dismiss an employee because you no longer need anyone to do their job. This might be because your business is:
- changing what it does
- doing things in a different way, for example using new machinery
- changing location or closing down
If you’ve been impacted by coronavirus (COVID-19), you can get funding to continue to pay your employees instead of making them redundant. This is known as furloughing.
For a redundancy to be genuine, you must demonstrate that the employee’s job will no longer exist.
Employees have certain rights and may be entitled to redundancy pay if they’re made redundant.
All employees under notice of redundancy have the right to:
- reasonable time off to look for a new job or arrange training
- not be unfairly selected for redundancy
You should always take steps to avoid redundancies before dismissing staff.
Employers must try to find suitable alternative employment within the organisation for employees they’ve made redundant.
Employees can try out an alternative role for 4 weeks (or more if agreed in writing) without giving up their right to redundancy pay.