Redundancy
The termination of employment because the role itself ceases to exist — through closure, restructuring, or reduced business needs — rather than any fault of the employee.
Genuine redundancy is about the position, not the person: if you rehire someone into essentially the same role shortly after, expect an unfair dismissal claim. Employees with two years' service are entitled to a statutory redundancy payment of two weeks' pay per year of service plus one bonus week, subject to a weekly pay ceiling. Fair selection criteria and a genuine consultation process matter as much as the payment — this connects directly to Lay-off and Short-time, which are the temporary alternatives.
Frequently Asked Questions
Use objective, consistently applied criteria — skills, qualifications, attendance records, disciplinary history — rather than subjective preference, and consult genuinely with affected staff about alternatives before deciding. 'Last in, first out' is traditional but not mandatory; what the WRC scrutinises is whether the selection method was fair, evidenced, and actually followed.
Not for the same role — redundancy means the position ceased to exist. Rehiring into essentially the same job shortly afterwards is the classic fact pattern behind successful unfair dismissal claims, because it suggests the redundancy was a pretext to remove the person rather than the position.
Employees with at least two years' (104 weeks') continuous service are entitled to two weeks' pay per year of service plus one additional week, with weekly pay capped for calculation purposes. Service and pay records determine the figure, so accurate payroll history matters when a restructuring looms.