COVID-19 Legal FAQ: redundancies

Redundancies should always be the last resort. If you find that your business has to go down this road you will have to conduct a fair selection procedure.

When deciding which roles to make redundant, ensure you use fair and objective criteria. Otherwise you could potentially find your business open to a claim for unfair dismissal or discrimination.

Along with the fair selection process, consulting with employees is central to the redundancy process. Give affected employees as much notice as possible and consult with them about how the process will work.

Meaningful communication is key in the redundancy process. If you have employees with two years or more service, they will be entitled to redundancy pay which will either be contractual or statutory.

For statutory redundancy payments, the government has an online calculator to help you work out what the pay will be.

Redundancy law is very complex and if you have to make redundancies make sure you get specialist legal advice.

Jane O’Shea is a Solicitor at the REC.

For further legal guidance on redundancy: 

• Legal guide: redundancy 
• Template forms and letters relating to redundancy