A genuine redundancy occurs when the employer no longer requires the employee’s job to be done by anyone.  Redundancy occurs when the business:-

  • Restructures or re organizes the way work is done
  • Slows down due to lower activity or sales
  • Outsources work
  • Introduces new technology
  • Closes down.

In cases of redundancy, it is important the employer consults with employees affected by the proposed changes, or employees, and potentially their union, with a view to averting or mitigating the harsh affect the redundancy may have. Failure to consult will allow the employee to pursue unfair dismissal relief.

Please note for a small business with less than 15 employees, there is no statutory obligation to pay severance pay, however notice must be paid and consultation must occur.

It is obligatory for an employer to give proper consideration to the possibility of redeploying the redundant worker in a suitable alternative position.

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