Redundancies occur when employees are dismissed due to their job no longer existing.

redundancies@2xThis can occur when:

  • New technology makes a job unnecessary
  • An employer needs to cut costs and reduce the number of employees
  • The employer needs to close the business

Making employees redundant should be a last resort after all other options have been explored.  If making redundancies is unavoidable the situation should be handled with great care and objectively.

When making redundancies it is usually necessary to:

  • Produce a clear and objective selection criteria
  • Consult with employees over the proposed changes and redundancies
  • Calculate redundancy payment
  • Give employees notice of redundancy

Don’t forget there are ways to avoid compulsory redundancies such as considering natural wastage, placing a freeze on recruitment activity, re-deploying employees to alternative roles, reducing overtime payments, exploring early retirement options, exploring voluntary redundancy options, reduing the number of agency staff and contractors.

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