Legislation overview

The main legislation governing redundancy includes:

  • The Trade Union and Labour Relations (Consolidation) Act 1992
  • The Collective Redundancies and Transfer of Undertakings (Protection of Employment) Regulations 1995 (SI 1995/2587)
  • The Employment Rights Act 1996
  • The Collective Redundancies and the Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 1999 (SI 1999/1925)
  • The Collective Redundancies (Amendment) Regulations 2006 (SI 2006/2387)
  • The Agency Workers Regulations 2010 (SI 2010/93)
  • The Unfair Dismissal and Statement of Reasons for Dismissal (Variation of Qualifying Period) Order 2012 (SI 2012/989)
  • The Trade Union and Labour Relations (Consolidation) Act 1992 (Amendment) Order 2013 which comes into force on 6 April 2013.

Other legislation which may be relevant in a redundancy situation includes:

  • The Information and Consultation of Employees Regulations 2004 (SI 2004/3426)
  • The Employment Equality (Age) Regulations 2006 (SI 2006/1031)
  • The employee shareholder status provisions under the Growth and Infrastructure Act 2013.
There is also specific legislation relating to the armed forces and civil servants:
  • Armed Forces Redundancy Scheme 2006 Order 2006 (SI 2006/55)
  • Armed Forces Redundancy Scheme 2006 and the Armed Forces Redundancy Etc. Schemes 2010 (Amendment) Order 2011 (SI 2011/208)
  • Superannuation Act 2010
  • Superannuation Act 2010 (Repeal of Limits on Compensation) Order 2010 (SI 2010/2996).

For the main provisions in the Employment Equality (Age) Regulations 2006 which also have an impact on redundancy, see our Age discrimination and retirement Q&As.

Certain EU legislation and case law influences the UK position. For example, the European Collective Redundancies Directive must be complied with.

For information on redundancy collective consultation see our Redundancy collective consultation Q&As.

Q: When does a redundancy situation arise?

Q: What procedure should be followed in implementing a redundancy situation to ensure it is as trouble-free as possible?

Q: Should all employers have a formal redundancy procedure and if so, what should it contain?

Q: Do employers have to make the same redundancy payments as in previous redundancy exercises because they are now an implied contractual term?

Q: What is individual consultation in a redundancy situation?

Q: Does an employee have a right to be accompanied by a colleague or a trade union representative at the redundancy consultation meetings?

Q: What are the common selection criteria for redundancy and how should they be applied?

Q: Should the 'Last in First out' (LIFO) method or any other criteria related to length of service be used as a criteria for redundancy selection?

Q: Is a voluntary redundancy a resignation and do volunteers have to be included in the calculation of the number of employees being made redundant?

Q: In a redundancy situation how should an employer determine the initial selection pool?

Q: Can an employer implement redundancies by ‘bumping’, that is by dismissing someone else so that their job can be given to the redundant employee?

Q: Once employees have been selected for redundancy can they appeal?

Q: What reasons must not be used as a basis for redundancy selection?

Q: Can an employee who is pregnant or on maternity or paternity leave be placed in the pool for selection for redundancy in the same way as other employees?

Q: Should a redundant employee be offered a suitable alternative job?

Q: How do statutory trial periods operate in a redundancy situation?

Q: Can part-time employees be dismissed by reason of redundancy if they cannot work full-time and the employer wants a full-time employee?

Q: Can an employer consult about a variation of contract, such as a reduction in hours and if the employees do not agree dismiss them and then re-engage on new terms instead of making redundancies?

Q: What is short-time working as an alternative to redundancies?

Q: What are the consequences if the redundancy dismissal is not carried out fairly?

Q: Can an employee resign once they are served with a redundancy notice and if they do so will they lose the right to statutory redundancy pay?

Q: How does an employee qualify for a statutory redundancy payment and how is it calculated?

Q: What is the 'obligatory period' and what is its impact on entitlement to redundancy pay?

Q: How are employers' own enhanced redundancy payments affected by age discrimination legislation?

Q: Is a redundant employee entitled to a period of notice as well as a redundancy payment and can they be placed on garden leave during any notice period?

Q: Are employees entitled to time off to seek alternative employment during their notice period following a dismissal by reason of redundancy?

Q: Should employees with less than two years’ continuity of employment be included in a redundancy consultation?

Q: Should employee shareholders be included in a redundancy consultation?

Q: Can an employer make employees redundant if they refuse to move locations?

Q: Are there any future developments expected in the area of redundancy?

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Case Law

Case law on redundancy

Selected cases on issues related to redundancy, including collective consultation, selection pools, suitable alternative employment, and payments

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