Redundancy

Redundancy is a form of dismissal.

An employee is dismissed by reason of redundancy if the dismissal is due wholly or mainly to:

  • The fact that the employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed.
  • The fact that the employer has ceased, or intends to cease, to carry on the business in the place where the employees worked, or
  • The fact that the requirements of the employer for employees to carry out work of a particular kind in the place in question have ceased or diminished or are expected to do so.

Employees who have been continuously employed for two years will be entitled to a statutory redundancy payment. However, employees only need one year’s continuous service to bring a claim for unfair dismissal, so it is important that any redundancy procedure is carried out correctly and fairly.

Should you have a redundancy situation you should contact the ABDO HR Service Advice Line ( to discuss how to deal with this.