Going Through Redundancy

Redundancy in the US is called downsizing or a reduction in force. In Britain it is a legal term that is employed when a company has to use redundancy and management reduces the workforce and people lose their jobs. In this case the job loss has nothing to do with an individuals actions but the redundancy is due to forces beyond the worker’s control. This can happen due to a downturn in the economy which is an uncontrollable outside influence. But it can also occur due to a long illness or poor health or retirement of one of the company owners and there is no one who wants to take over that company.

It can occur when a company endures a partial closure for retooling or other reasons or it can happen when a company closes completely or moves its location for economic reasons or again for a lack of succession. Generally if a company moves to a new location in another part of the country it will make offers for the existing employees to make the move with them. However in many cases people just can’t afford to move house or leave their family just because the company is moving and therefore they lose their job.

Another reason a redundancy can occur is when a position or job becomes obsolete due to technology. This may mean the position used to be manual but the plant now can use a machine to pack those boxes. In this case the person who used to pack those boxes by hand has been replaced with a machine. This can happen to one person or to an entire division. When this happens unless that company has a position somewhere else within the company the worker or workers are no longer needed and they lose their jobs.

In England and Wales there are several areas of being considered redundant. One of them has to do with the number of employees in the company which determines whether the layoff is referred to as individual or collective. Of course company managers can’t use race, gender, age religion or trade union affiliations or other discriminatory traits to choose who will be laid off. It is generally accepted they will utilize a fair criteria for the selection of who is to be laid off. If the company has trade unions within its worker structure the company may hold discussions about the reduction of forces with Trade Union negotiators. Otherwise the company is obligated to discuss the future job losses with the employees of the company. These discussions must adhere to specific time schedules per the laws of the country.

The whole process is based on consults and other information that should be shared with the employees who will be considered redundant. Notices are regulated and different actions require various payouts such as notice pay. For example if an employee is given notice they are paid per a formula and they can look for work during this time but the pay varies when looking for work.


Redundancy Law advice for any issues resulting from wrongful termination. For more details visit http://www.redundancylaw.co.uk