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.
Related terms
In-depth guidance
From the legal definition to a defensible redundancy
Redundancy is a legal test about the work, not about the person. Two things sink most redundancy defences: a selection process that looks designed around an individual, and consultation that started after the decision was made.
Does the situation meet the statutory definition?
- Closure of the business as a whole.
- Closure of the particular workplace where the employee works.
- A reduced requirement for employees to do work of a particular kind, at that workplace or generally.
If the same work is continuing at the same volume and you simply want a different person doing it, that is not redundancy. Attempting to use redundancy to remove a performance or conduct problem is one of the fastest routes to an unfair dismissal finding.
Pooling, selection and scoring
- Define the pool by looking at who does interchangeable work, not by who you would prefer to keep.
- Choose criteria that are objective and capable of evidence: skills and qualifications, performance records, disciplinary record within a defined period, and attendance excluding absence linked to disability, pregnancy or family leave.
- Have two managers score independently where possible and keep the underlying evidence.
- Share individual scores with the employee at consultation and allow challenge.
- Avoid criteria such as flexibility or attitude unless you can define and evidence them.
Consultation timetables
| Proposed redundancies at one establishment | Minimum consultation | Who to consult |
|---|---|---|
| Fewer than 20 in 90 days | No fixed minimum, but meaningful individual consultation is required | Each affected employee individually |
| 20 to 99 in 90 days | At least 30 days before the first dismissal takes effect | Recognised union or elected employee representatives, plus individuals |
| 100 or more in 90 days | At least 45 days before the first dismissal takes effect | Recognised union or elected representatives, plus individuals, with an HR1 form to the Insolvency Service |
Collective consultation penalties
Failing to consult collectively where required can lead to a protective award of up to 90 days' actual pay per affected employee, and failing to file form HR1 is a criminal offence.
Payments and final steps
- Statutory redundancy pay is based on age, complete years of service capped at 20, and a capped weekly pay figure.
- Employees with two years' service are entitled to reasonable paid time off to look for work.
- Suitable alternative employment must be offered where it exists anywhere in the group, with a four-week statutory trial period.
- Employees on maternity, adoption or shared parental leave have enhanced protection and must be offered a suitable alternative vacancy ahead of others.
- Give notice in writing, confirm the redundancy payment breakdown, and offer a right of appeal.
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