Redundancy in United Kingdom law


Redundancy in United Kingdom law concerns the rights of employees if they are dismissed for economic reasons in UK labour law.

Definition of redundancy

Section 139 of the Employment Rights Act 1996 defines the two situations in which a redundancy may occur:
the fact that his employer has ceased or intends to cease—

the fact that the requirements of that business—
have ceased or diminished or are expected to cease or diminish.

Diminishing of work

While the first case envisages situations where an employer simply closes his business, the second scenario has caused trouble in its interpretation.
Geographical test now favoured, Bass Leisure Ltd v Thomas, best of both worlds for the employer potentially, though in that case the EAT made clear that any use of mobility clauses must be subject to the employee's situation.

Redundancy procedure

Bessenden Properties Ltd v Corness establishes the main principles on fairness of procedure, with Williams v Compair Maxam Ltd affirming it.

Consultation

Redundancy payments