Jurisdiction(s):
United Kingdom

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...

Statutory redundancy pay for lay-off and short-time working: definitions, qualifying periods, notice and termination requirements, employer counter-notice and defence, and interaction with guarantee payments.

Published by a LexisNexis Employment expert

Practice notes

An employee may claim a statutory Redundancy payment without being dismissed in one of two situations:

where the employee is laid off, i.e. the employer temporarily closes operations due to no, or insufficient, work for staff
where the employee is on short-time working—this is when the employer reduces contractual hours and, as a result, pay is reduced

In summary, a statutory redundancy payment is payable where:

there is a period of lay-off (see: Lay-off generally and The definition of a statutory lay-off below) or short-time working
that period lasts for the prescribed period (see: Claiming a redundancy payment below)
the employee gives written notice of intention to claim within the required timeframe (see: Employee’s notice of intention to claim)
the employee ends the contract by giving the requisite notice (see: Employee must terminate the contract below)
the employer does not issue a counter-notice stating there is reasonable expectation of a return to normal working (see: Employer’s counter-notice below)
the employee...

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Web page updated on 28/05/2026

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