Jurisdiction(s):
United Kingdom

Related legal acts

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...

Business reorganisations: employment law guide—redundancy, SOSR, collective consultation and HR1, TUPE (including pre‑transfer), changing terms, and dismissal and re‑engagement

Published by a LexisNexis Employment expert

Practice notes

A range of employment law questions emerges when a business plans a reorganisation. These matters are both legal and practical, and this Practice Note explores each, alongside guidance on managing how they interact. It assumes the enterprise remains at the same location but operates under a different structure, rather than closing or moving, where Redundancy would be the main focus (for which, see Practice Note: Definition of redundancy). In practice, employers may at times take calculated gambles by shortcutting applicable legal procedures, perhaps to save time or through a measure of reverse‑engineering to deliver a preferred outcome. However, this Practice Note proceeds on the basis that the organisation intends to follow a legally compliant course, while also setting out the legal and employee relations risks of taking an alternative route.

Initial considerations

The reorganisation initiative should, from the outset, be treated as one that could be challenged in law. This means that, until a final decision has been made on the new structure (following appropriate consultation—see Whether collective consultation obligations are triggered below), all documents produced for the purposes of planning the re‑structure...

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Hannah Swindle

Gowling WLG

Hannah has broad experience in helping private and public sector clients effectively manage employee risk. She advises on the full range of employment work, working with clients.to resolve employment law issues quickly and efficiently. Hannah has a particular emphasis on employment matters arising from TUPE, insolvency and restructuring. She regularly advises public and private sector clients in planning for and managing TUPE transfers in the context of first and second generation outsourcing, business sales and restructuring. She provides pragmatic advice on all aspects of the process including procurement, negotiation of appropriate contractual protections, provision of employee information, consultation with unionised and non-unionised workforces and post-transfer integration and change processes. Hannah provides clients with sensible and effective support and solutions for their day-to-day employee problems, focussing on achieving the best outcome for the client, in line with their priorities and aims. She has...

Web page updated on 21/05/2026

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