Making staff redundant

Last updated: 8 December 2017


Redundancy is when you dismiss an employee because you no longer:

  • carry out the business they're employed for
  • carry out business in the place where they're employed
  • need them to carry out work of a particular kind
For a redundancy to be genuine, you must demonstrate that the employee's job will no longer exist.

Redundancies can be compulsory or non-compulsory. If you do have to make redundancies you can get help from Jobcentre Plus.

Employee rights

If you make employees redundant, they have a number of rights and may also be entitled to redundancy pay.

All employees under notice of redundancy have the right to:

  • be offered suitable alternative employment
  • a trial period in the alternative role without losing any right to redundancy pay
  • reasonable time off to look for a new job or arrange training
  • not to be unfairly selected for redundancy
You should always take steps to avoid redundancies before dismissing staff.

Alternative employment

Employers must try to find suitable alternative employment within the organisation for employees they've made redundant.

Employees have the right to a trial period without losing the right to redundancy pay if they accept an alternative role.

Making staff redundant