Redundancy occurs when the employer no longer needs the same amount of workforce hours devoted to the same activity at the same place. This may be because of a closure, a relocation or a reorganisation. The result is that the employer may opt to dismiss one or more employees.
Those being made redundant have legal rights:
- to be consulted in advance, in order to discuss alternatives;
- to be given reasons for the redundancy;
- to be selected for redundancy according to an objectively fair process if more than one person is affected by the change, and to know the basis of the selection system;
- to try out any alternative offer of suitable work for four weeks; and
- to take reasonable time off, with pay, to look for alternative work or training (only employees who have worked for their employer for two years have this right).
In addition, employees with at least two years' service are entitled to a redundancy payment.