Redundancy

Redundancy occurs when you are no longer required to work usually because your employer no longer requires your services. It is the job that becomes redundant, not you. You may not automatically lose your job when your position becomes redundant. There may be the opportunity for your employer to provide you with an alternative position with the company or organisation.

When does a job become redundant?

Redundancy usually occurs for one or more of the following reasons:

  • A general downturn in the economy
  • Work of a particular kind has diminished
  • New technology
  • Re-organisation of work methods

Do I have any rights if I'm made redundant and how much could I get?

If you are made redundant and you have been employed for two years of more then you will be entitled to a statutory redundancy payment. To find out how much you would be entitled to, just go to our redundancy calculator.

Most employers will have a redundancy scheme that is more generous that the statutory scheme. To ascertain how much you may be entitled to you will need to heck your employment contract - redundancy terms may be stipulated there - or your employer may already have an agreed redundancy procedure.

Can I have time off to look for another job?

Provided that you have worked for your employer for at least two years continuously, you are allowed a reasonable time off to look for another job or for training with pay, during working hours. Your employer must not unreasonably refuse you time off and must do so before your notice period expires.

What should I do if I think I have been unfairly selected for redundancy?

You should seek legal advice to determine if you have been unfairly selected for redundancy.

Dismissal on grounds of redundancy will be automatically unfair if:

1. You are selected for redundancy when others in similar circumstances were not selected and the reason for this was:

  • Due to your trade union membership or activities or non-membership of a trade union
  • That you had sought in good faith to exercise a statutory employment protection right
  • That you took or proposed to take certain specified types of action on health and safety grounds
  • That you was selected for redundancy on maternity related grounds
  • That you was a shop worker or a betting worker and was selected for redundancy for refusing or proposing to refuse to do shop work or betting work on Sunday's or was selected for redundancy for giving, or proposing to give an opting out notice to your employer

2. Dismissal on the grounds of redundancy may also be held to be unfair, depending on the circumstances, for some other reason. For example, if your employer failed to give you adequate warning of redundancy or failed to consider alternative employment.

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