Reviewed by Elizabeth Rebecca Cavendish · Updated
Glossary

What Is Redundancy?

Redundancy explained, a plain-English guide for UK employers.

Short definition

A statutory definition: dismissal because the employer needs fewer employees to do work of a particular kind, or has closed a workplace.

The legal definition of Redundancy

Redundancy is defined in section 139 of the Employment Rights Act 1996. A dismissal is by reason of redundancy where the requirement for employees to carry out work of a particular kind has ceased or diminished, or where the workplace has closed (either entirely or at the location the employee works). It is one of the five potentially fair reasons for dismissal. This page covers the legal definition only. For the procedural steps employers must follow, see our step-by-step redundancy process guide. For statutory pay amounts, use our redundancy pay calculator. For the at-risk letter, see our consultation letter template. For end-to-end support running a redundancy programme, see Redundancy Support for Employers.

Legal reference: Employment Rights Act 1996, s.139

Last reviewed 21 June 2026.

Need help in practice?

This page covers the legal definition only. For end-to-end employer support, see our Redundancy Support for Employers service.

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