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Redundancy Policy and Procedure


The Redundancy Policy and Procedure has been drafted to ensure your organisation adopts a comprehensive policy regarding employees at risk of redundancy and the arrangements for redundancy pay.   

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Redundancy Policy & Procedure

Redundancy is a form of dismissal. Redundancy is dismissal by reason of the fact that the job that the Employee has done no longer exists.

Redundancy is defined by the Employment Rights Act 1996 as a dismissal attributable wholly or mainly to:

  • Where the employer has ceased or intends to cease to carry on the business for the purposes of which the employee was employed; or
  • Where the employer has ceased or intends to cease to carry on the business in the place where the employees were so employed; or
  • Where the requirements of the business for employees to carry out work of a particular kind, or to carry out work of a particular kind in the place where the employee was employed, have ceased or diminished or are expected to cease or diminish.

Employers must follow certain procedures in order to ensure that all redundancies are fair and in accordance with the law. This includes having a period of consultation with the employees, or their representatives if there is a Collective Redundancy situation (i.e. 20 or more redundancies within a 90-day period). Failure to follow these procedures can result in claims of unfair dismissal.

Upon Redundancy, eligible employees will be entitled to Statutory Redundancy Pay. They also have other rights including:

  • the right to be offered alternative work where possible
  • the right to have time off from work in order to search for another job; and
  • the right to not be unfairly selected for Redundancy

This Redundancy Policy is fully compliant with the requirements of the Employment Rights Act 1996.

This Redundancy Policy & Procedure is in Microsoft Word format, written in plain English, easy to use and edit.

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