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HR Compliance

Redundancy

The termination of employment because a role is no longer needed.

Full Definition

Redundancy occurs when an employer dismisses an employee because their role is no longer needed — due to business closure, relocation, reduced demand, or restructuring. In the UK, employees with 2+ years' service are entitled to statutory redundancy pay, calculated based on age and length of service. Employers must follow a fair redundancy process including genuine consultation, consideration of alternatives, and a selection process based on objective criteria. Failure to follow a fair process can lead to unfair dismissal claims.

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