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...

Reduced-pay same role: suitable alternative employment and statutory redundancy pay entitlement

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Published by a LexisNexis Employment expert

Q&As

This Q&A reviews alternative employment for fair dismissal purposes and examines what counts as suitable alternative employment for statutory Redundancy payment purposes. It addresses both fair dismissal and statutory redundancy payment considerations.

Reason for dismissal

The same definition of ‘redundancy’ is applied for the purposes of determining:

the entitlement to a statutory redundancy payment
whether, in the context of an Unfair dismissal claim, the reason for dismissal is redundancy

Under that definition, an employee is dismissed by reason of redundancy where the dismissal is wholly or mainly attributable to:

the employer ceasing, or intending to cease, carrying on the business for the purpose for which the employee was employed by them
the employer ceasing, or intending to cease, carrying on that business in the place where the employee was so employed
the Requirements of the business for employees to undertake work of a particular kind, either generally or in the place where the employee was employed, ceasing or diminishing (or being expected to cease or diminish)

For further information, see Practice Note: Definition of redundancy—redundancy payment entitlement, and fair reason for dismissal...

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Web page updated on 27/05/2026

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