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Redundancy (Great Britain)

Under the statutory definition, redundancy can arise where a dismissal is wholly or mainly attributable to closure of the employer’s business or workplace, or a reduction in the need for employees to carry out work of a particular kind. Employers must assess the relevant consultation, selection, notice and payment requirements; whether an employee is entitled to a particular remedy depends on the facts and statutory conditions. A redundancy situation does not automatically make every selection or dismissal fair.

Worked example

A business closes a department and no longer needs the roles performed there. It considers consultation and fair selection before making employees redundant; their statutory entitlements depend on the circumstances.

Common mistake

Assuming a genuine redundancy situation automatically makes every dismissal fair or that every dismissed employee receives the same payment.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA LW (ENG) Direct September 2026–June 2027