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Employment Law - Redundancy

Redundancy refers to a dismissal which is prompted by the need to eliminate or fundamentally change a particular role, and as a result the person carrying out the role is made redundant.

Examples of how this situation might arise include:

  • the organisation is relocating to a significant distance away and therefore the role which the employee was carrying out at a particular location no longer exists there
  • the organisation, or the part of the organisation where the employee works, is ceasing or diminishing due to loss of business or poor financial position
  • a particular role is no longer required by the organisation due to loss of business/changes in the market/internal rationalisation or re-structuring etc, and ceases to exist
  • there is a financial need for an overall reduction in the size of the workforce or the size of a department, and the tasks associated with a particular role are to be shared out among others.

Rules differ on the procedure to adopt depending on how many employees are to be made redundant but in all cases, it is important to act fairly and in a non-discriminatory way to ensure a fair dismissal.