You may have heard the term being thrown around or may even be at risk yourself, but what does ‘redundancy’ actually mean? Well, redundancy is what occurs when an employer needs to reduce their workforce which results in the dismissal of employees. So, let’s delve into the details to reduce some of the scary stigma around it. 

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What Causes It?

When an employer changes location, closes all or part of the organisation or changes the types or number of roles needed to do certain work, redundancy can occur. Employers should try to avoid redundancy or enforce it as a last resort as it can be very distressing for employees and can lower motivation and productivity. If it is being considered, 

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How Do Employers Choose?

Employers cannot simply pick and choose who they want to put up for redundancy, they must use a fair and objective system. Some common methods include:

• First in, first out (the person who joined the team last would be first up for dismissal)
• Self-selection (asking for volunteers)
• Skills, qualifications and experience

However, if your employer is completely shutting down a certain area of the business or whole operation and all the employees working in it, then there may not be a selection process to follow. 

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What About Unfair Selection?

There are some reasons that redundancy could be deemed as ‘unfair’ and that is when an employee is dismissed for reasons such as:

• Pregnancy or maternity/paternity related reasons
• Sexual orientation
• Age
• Disability
• Membership or non-membership of a trade union

In this case, you can appeal the decision by writing to your employer to explain why you believe you have been unfairly dismissed. The reasons may be that correct procedures weren’t followed or you were selected for no good reason. 

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What Is The Process?

There should always be a formal redundancy procedure that companies follow. This is dependent on the size of the company, the size of the redundancy programme and the timescale. Once the employees have been selected, they will be consulted, giving them reasonable warning of the impending redundancy. If there will be more than 20 redundancies, there will be a ‘collective consultation’ (involving a trade union). If there are less than 20, they will consult with each employee individually. 

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This consultation is your chance to have a discussion with your employer about what they are proposing and why you may be made redundant. This may include any issues you have or questions regarding how people will be selected. Your employer must consider any issues or suggestions you raise. 

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What Next?

If you face redundancy, you may be eligible for certain things:

• Redundancy pay
• A notice period
• A consultation with your employer
• Time off to find a new job
• The option to move to a different job

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Redundancy can be scary but knowing your rights can ensure the process is followed correctly. The Gov.uk, Acas and Citizens Advice are all great websites for advice and information if you find yourself needing more information.