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Jurisdiction(s):
United Kingdom
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Key definition
Redundancy definition

What does Redundancy mean? Redundancy describes a dismissal arising because the employer no longer needs employees to do work of a particular kind, or the business (or workplace) closes or relocates. It concerns the role, not the individual’s conduct or capability. In England & Wales and Scotland, the statutory test is in section 139 Employment Rights Act 1996; in Northern Ireland, Article 174 Employment Rights (Northern Ireland) Order 1996; and in Ireland, the Redundancy Payments Acts 1967–2014. Across these jurisdictions, the core elements are broadly consistent. Key legal features include: a potentially fair reason for dismissal if a fair procedure is followed; use of an appropriate...

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Bumping redundancies in Great Britain: fairness, when employers should consider bumping, eligibility for redundancy payments, and limits across businesses, associated employers and schools under ERA 1996

Practice notes
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Bumping

This Practice Note explores the Redundancy practice called ‘bumping’, where an employee who would not otherwise appear redundant is dismissed as redundant due to a reduced need for another employee’s duties, thereby becoming eligible for a Redundancy payment. It outlines the scenarios in which a bumping redundancy Dismissal may occur and when it can constitute a potentially fair reason for dismissal. It further considers whether, when confronted with a potential redundancy situation, an employer is obliged to consider bumping in every instance, and the key factors the employer should assess.

An employee is entitled to a redundancy payment if they are dismissed by reason of redundancy and have been continuously employed for the statutory qualifying period (see Practice Note: Entitlement to statutory redundancy payment), or where payment arises under a contractual redundancy scheme (see Practice Note: Contractual redundancy payments). A dismissal is by reason of redundancy if, amongst other things, the reason for dismissal is an actual or anticipated cessation or diminution in ‘the Requirements of the business for employees to carry out work of a particular kind’...

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Web page updated on 21/05/2026

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