{"id":177124,"date":"2022-10-14T13:09:57","date_gmt":"2022-10-14T12:09:57","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=177124"},"modified":"2022-10-31T22:23:10","modified_gmt":"2022-10-31T22:23:10","slug":"employer-redundancy","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/employer-redundancy\/","title":{"rendered":"What Does an Employer Need to Know About Redundancy in England?"},"content":{"rendered":"

Unfortunately, as a business owner, you may need to take steps to protect your business at the expense of your employees. This may include evaluating the merits of undertaking a redundancy process, which will enable you to lawfully terminate certain employee positions. You should only consider redundancy as a last resort and must carry out the process properly, otherwise, you may be liable for an <\/span>employment tribunal claim<\/span><\/a>. Where possible, you should strive to take cost-cutting action elsewhere. But if you determine it is necessary, this article will explain what you need to know about redundancy in England.\u00a0<\/span><\/p>\n

What is Redundancy?<\/span><\/h2>\n

Redundancy is where you end your employee\u2019s employment contract and dismiss them from their role on the basis that your business no longer has any use for the position. The law recognises three legitimate reasons for redundancy:\u00a0<\/span><\/p>\n\n\n\n\n\n\n
Reason<\/b><\/td>\nExample<\/b><\/td>\n<\/tr>\n
The nature of your business has changed<\/span><\/td>\nYou have expanded into a different product market.\u00a0<\/span><\/td>\n<\/tr>\n
Your business is changing the way it operates<\/span><\/td>\nYou have outsourced your payroll department to an accounting service.\u00a0<\/span><\/td>\n<\/tr>\n
Your business is relocating or closing down some aspect of its operations<\/span><\/td>\nYou wish to consolidate your Manchester and Leeds offices into a single one based in Manchester.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Types of Redundancy<\/span><\/h2>\n

The law recognises redundancies in two forms:\u00a0<\/span><\/p>\n\n\n\n\n
Non-compulsory redundancy<\/span><\/td>\nThe employees potentially affected by the redundancy scheme are not forced out of their roles. The scheme instead gives all relevant employees the offer to accept a redundancy package.\u00a0<\/span><\/td>\n<\/tr>\n
Compulsory redundancy<\/span><\/td>\nThe relevant employees identified under the redundancy scheme have no choice in the matter. As a result, you must grant them certain entitlements under a redundancy package, plus any additional benefits at your discretion.\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n
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