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What is redundancy?

Posted on Friday, 19th July 2013 by

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Redundancy is a form of dismissal from work when applies when the work you were doing is no longer needed. Redundancy is regularly referred to as being ‘laid-off’ however this is when you employer does not have enough business for all employees and may ask you to take some unpaid holiday. Being ‘laid-off’ is used as an alternative to redundancy.


An employee can be made redundant if:

·        The employer’s business or part of the business has gone bust or has ceased to continue operating

·        The employer’s business is taken over

·        The employer is moving into a new area of business where the employee’s skills are no longer required

·        A system or technology is being introduced into the business which means the employee is no longer required

·        The business or work the employee was doing has been relocated to another area

·        Following a reorganisation of the business the employee’s job no longer exists or is being done by another employee


If the employer’s business has been taken over it is usual for employment contracts to continue with the same terms and conditions as the previous employment contract as it is protected by the Transfer of Undertakings (Protection of Employment) Regulations. There are circumstances though where an employee may be made redundant by either the previous employer or the new employer during this transfer, but the employer must prove:

·        The employee was made genuinely redundant as the work they were doing is no longer needed

·        And, the transfer of employers was no the main or only reason for the redundancy.


If the skills of an employee are no longer needed because the employer is moving into a new area of business, the employer can make the employee redundant even if there is other work within the company available for the employee to do. The employee can be made redundant because there is no longer any work available that the employee was employed to do, not that there is no work available. If there is suitable alternative work when the employee is made redundant, the employer should offer this if possible.

Andrew is a Commercial & Employment Law solicitor in Leicester. Our Solicitors in Leicester are experts in their fields and dedicated to quality client care. If you would like to find out more about our solicitors in Leicester please contact us.


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Andrew Robinson - Employment Law
Andrew Robinson - Employment Law
andrew.robinson@ehlsolicitors.co.uk 01509 212 108
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