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 (i.e. before there is a fixed plan to make redundancies, to be invited to discuss the situation and explore 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.
In addition employees with more than two years' service are entitled to a redundancy payment.