Technical factsheet 155: Redundancy

Redundancy was introduced in the 1970s and provides a separate reason for a contract to be terminated. It is governed by the Employment Rights Act 1996. Redundancy is a form of dismissal, but the conduct or competence of the employee is irrelevant. The dismissal has taken place for economic and/or organisational reasons which mean that the employee’s post is redundant. [Updated November 2014]