Redundancy

A genuine redundancy arises in one of three circumstances:

  1. The whole business you work for closes.
  2. The place where you work closes.
  3. The business requires fewer employees to do work of a particular kind.

Examples of a genuine redundancy situation include:

  1. The workplace has closed because the business has ceased trading or has become insolvent.
  2. The employer’s business moves to another location.
  3. The work the employee does is no longer required due to a downturn in business or because a new process has been introduced.

From 6 April 2024, employees who are pregnant or returning from maternity, adoption or shared parental leave will gain priority status for redeployment opportunities in a redundancy situation.

Employers will need to review their redundancy policies and procedures to ensure that they cover the right for those on maternity, adoption or shared parental leave to be offered any suitable alternative vacancy on redundancy and ensure that they take account of the extended redundancy protection period where any employees at risk of redundancy are pregnant or have recently returned to work from maternity, adoption or shared parental leave.

The changes in relation to maternity leave will double the current period of redundancy protection from one year to around two years, assuming the pregnant employee advises the employer of their pregnancy at about the 12-week point and takes one year's maternity leave. This could substantially increase the number of employees who must be given priority for any suitable alternative vacancy on redundancy, particularly in workplaces where most employees are women.

For any support or advice in a potential redundancy process please contact our specialist team of Employment Lawyers on 0345 646 0406 or fill in our online enquiry form and a member of our Team will be very happy to assist.