What is redundancy?

If you are dismissed because of redundancy, this usually means that your employer has needed to reduce their workforce.

This may either be because the place where you work is closing down, or because there is longer the need (or no longer expected to be the need) for you to carry out the particular kind of work that you do.

If you are dismissed because of a need to reduce the work force, and one of the remaining employees moves into your job, you will still qualify for a redundancy payment so long as:

• no vacancy exists in the area (type of work and location) where you worked;
• you have a worked for a continuous period of 2 years, or there is a custom and practice for your employer to make a redundancy payment.

Normally your job must have disappeared. It is not a plausible redundancy if your employer immediately takes on a direct replacement for you.

It does not matter, however, if your employer is recruiting more workers for work of a different kind, or in another location (unless you were required by contract to move to the new location). The definition of redundancy therefore covers 3 basic situations:-

• Where the employer ceases to carrying on business (other than involving a transfer of an undertaking) on a permanent or temporary basis;
• Where the employer ceases business in the place where the employee is employed;
• Where the employer’s business no longer requires any employees or as many employees to do a particular kind of work (whether generally or in the place where the employee was employed).