Redundancy solicitors in Leicester

Redundancy is a fair reason for dismissal, but only if there is a genuine redundancy situation and the employer follows a fair process. A lot of unfair dismissal claims come from redundancies that were handled badly.

What counts as redundancy

Broadly, where the business is closing, a workplace is closing, or the need for employees to do work of a particular kind has reduced. Using “redundancy” to remove someone for performance or personality reasons isn’t genuine redundancy.

A fair process

• Warning and consultation with the employees affected before decisions are final.
• A fair pool of employees who could be selected.
• Objective selection criteria, applied consistently, with a chance to comment on your scores.
• Looking for alternative work within the business, and offering a trial period in a new role.
• A right of appeal.

Collective consultation

Where an employer proposes 20 or more redundancies at one establishment within 90 days, there are extra duties to consult employee representatives for a minimum period and to notify the Insolvency Service. Failing to consult can lead to a protective award for each affected employee. The Employment Rights Act 2025 changes some of these rules, including the size of the award, so employers should check the current position before starting.

Pay

Employees with enough service are entitled to statutory redundancy pay, plus notice pay (or pay in lieu) and accrued holiday. Some contracts or policies give enhanced redundancy pay. Redundancy payments up to £30,000 are usually free of income tax, but notice pay is taxed as normal.

Settlement agreements

Employers often offer a settlement agreement with an enhanced payment in return for giving up claims. You’ll need independent legal advice before signing, and the employer usually contributes to the cost.

Common questions