Work
Redundancy is about the job disappearing, not the person failing
Dismissal for economic reasons is treated as its own category in most systems, with distinct conditions about whether the situation is genuine, how people were selected, and what consultation took place.
By Callum Rees3 min read

A different kind of ending
Most dismissals are about the individual: what they did, or how they performed. Redundancy is the category where the individual has done nothing wrong at all. The work has reduced, a site has closed, a function has been restructured, and the employer needs fewer people doing something rather than a different person doing it.
That difference is why systems treat it separately. The questions asked of a conduct dismissal — was the belief reasonable, was the investigation adequate — do not fit a situation where nobody is alleging anything. What replaces them is a set of questions about whether the economic reason is real, whether the choice of who goes was defensible, and whether the process gave people a genuine chance to influence the outcome.
Whether the situation is genuine comes first
The threshold question is whether a redundancy situation actually exists on the facts, and definitions vary. Common formulations refer to the closure of a business or a workplace, or to a reduced requirement for employees to carry out work of a particular kind. Some systems are more prescriptive; others leave it broader.
Two familiar problems arise here. The first is the dismissal dressed as redundancy, where the real reason is dissatisfaction with a person and the role reappears shortly afterwards under a new title. The second is the restructure where the role has genuinely changed rather than disappeared, which may or may not qualify depending on the local test. Both are fact-heavy, and both are decided on what actually happened rather than on what the letter said.
Selection and the pool it draws from
Where fewer people are needed but some are retained, the employer has to choose, and the choice attracts scrutiny in most systems. Two things are examined: the group from which the selection was made, and the criteria applied within it. A pool drawn artificially narrowly — one person, defined so precisely that only they fall inside it — is a familiar source of challenge.
Criteria are usually expected to be objective and capable of being evidenced rather than resting on general impression. Assessments derived from records rather than from memory, applied consistently, and retained afterwards tend to survive; scores produced after the decision rarely do. Criteria that correlate with a protected characteristic raise a separate and more serious issue, since a selection process can be lawful as a redundancy exercise and unlawful as discrimination at the same time.
Consultation is an obligation, not a courtesy
Many systems require consultation before redundancy dismissals take effect, individually and, where numbers pass a threshold, collectively with representatives or a union. The obligation typically requires that it happen while proposals are still capable of being influenced, which is the part employers most often get wrong by announcing a settled decision and calling the aftermath consultation.
Collective obligations frequently come with procedural requirements attached, including notification to a public authority in some jurisdictions, and failure can carry consequences quite separate from any individual claim. The thresholds, timescales and mechanisms differ everywhere, and this is one of the areas where an employer acting on a summary from another country can create a serious and expensive problem.
Alternatives, offers and payments
A recurring expectation is that the employer consider whether the person could do something else in the organisation, and offer suitable alternatives where they exist. What counts as suitable is judged against status, pay, skills and location rather than against whether a job technically exists, and unreasonably refusing a genuinely suitable offer can affect entitlements in some systems.
Many jurisdictions also provide for a payment on redundancy, calculated by reference to service and pay, and some require notice or pay in lieu on top. The existence, calculation and tax treatment of such payments differ completely between countries, so no general figure or formula is worth carrying across a border.
Take advice before signing, and before the clock runs
Redundancy exercises frequently end with an offer of enhanced terms in exchange for giving up the right to bring claims. Such agreements are usually valid only if defined conditions are met, and in a number of jurisdictions independent advice is one of them. That requirement exists for a reason, and the moment before signing is exactly when advice is worth most.
Nothing here is advice on a particular dismissal, and outcomes turn on facts and local rules a general article cannot know. Speak to a qualified employment lawyer or an advice service where you work as soon as a process is announced. Deadlines for employment claims are often startlingly short, they run from the dismissal rather than from the end of any appeal, and an internal process does not pause them.
Common questions
They advertised my role again weeks later. Does that help me?
Do I have to accept a different job I was offered?
Should I sign the settlement agreement they sent?
Features writer, What's Your Case
Callum joined to cover consumer, housing, work and stayed for the awkward questions and prefers a plain explanation to a clever one.





