When a company needs to reduce the size of their workforce, usually for financial reasons and to save money, they sometimes use a redundancy process. Redundancy is a form of dismissal and it has some set characteristics and laws that must be adhered to for the redundancy to be lawful.
When an employee is made redundant, they might be eligible to certain rights such as:
a notice period
the option to move into a different job
time off to find a new job
Redundancy must always be carried out fairly and it’s not permissible to select employees for redundancy because of their age, gender, disability or if they are pregnant. Any attempts to make a staff member redundant for the wrong reasons could result in the company performing the redundancy facing a claim of unfair dismissal.
In addition to a useful redundancy policy, you’ll find a free redundancy calculator which may come in handy.