Redundancy

Redundancy is a difficult and complex matter. It is not a ‘catch all’ allowing employers to dismiss employees where they cannot find another fair reason to dismiss. Redundancy should only be considered when there is a true redundancy situation as detailed below.

A redundancy situation exists when there is:

• a closure or intended closure of business
• a closure or intended closure of that part of the business where the employee works
• a reduction or expected reduction in the need for the kind of work carried out by the employee

Redundancy occurs most frequently when an employer relocates his business or suffers a cutback in business necessitating a reduction in the workforce. It is not the amount of work that the employer has that determines whether there is a need for redundancies, but rather the number of employees required to carry out the work. An employee carrying out a particular job could be made redundant even if the amount of work remained the same or had increased for example, fewer employees could be required because of new technology.