What rules apply to redundancy?

Generally speaking, a redundancy situation arises if a business closes completely, a particular workplace closes or there is a reduced need for employees to do a particular type of work.

If an employer is considering making employees redundant, they should firstly explain the situation to all affected employees and warn their jobs are at risk of redundancy. The employer should then consult with the employees on potential ways to avoid redundancy and if more than one person is affected it may involve selecting the redundant employee(s) from a pool based on objective criteria.

Once redundancy is confirmed, the employer should allow reasonable paid time off for the employee to find another job and give them the right of appeal against the decision.

Depending on the number of redundancies to be made within a particular timeframe, there may also be statutory minimum consultation periods which apply before any decision can be made.