Understanding wrongful redundancy in UK employment law
Redundancy itself is not unlawful. An employer can legitimately make a role redundant when the business no longer needs it. What is unlawful is making someone redundant without following the proper legal procedures. This distinction matters enormously because wrongful redundancy gives you grounds for a claim against your employer. The most common causes of wrongful redundancy include failure to consult, selecting someone for redundancy when that person is protected, making decisions based on discriminatory grounds, or failing to offer alternative employment when it is available.
Under the Employment Rights Act 1996 and the Employment Tribunals Act 1996, UK employees have clear legal protections against unfair redundancy. The employer has a duty of care to follow fair procedures, to communicate clearly, and to give proper notice. When these duties are breached, you have the right to claim unfair dismissal, and in some cases, wrongful dismissal. Understanding the difference between these two types of claim is important because the legal grounds and the compensation available differ significantly.
Fair redundancy procedure: what your employer must do
A fair redundancy process requires your employer to consult with you individually about the redundancy, to warn you of the impending redundancy, to consider your position for alternative roles within the organisation, and to make the redundancy decision based on objective criteria. Many employers skip one or more of these steps, thinking they can move quickly. In law, speed does not excuse unfairness. A redundancy handled in a rush with minimal consultation is almost always unfair redundancy.
The consultation requirement is particularly important. Your employer cannot simply tell you that your role is being made redundant. They must discuss it with you, give you an opportunity to respond, consider your input, and explain their decision. The length of the consultation period should be reasonable given your circumstances. For senior staff, this might be several weeks. For junior roles, it might be shorter. But there must be a genuine consultation process. ACAS guidance on redundancy makes clear that consultation is not a tick-box exercise. It is a genuine dialogue about the redundancy decision and whether alternative solutions exist.
Situations where redundancy becomes unlawful
Redundancy becomes genuinely unlawful in specific circumstances where the law provides particular protection. These situations take precedence over any business need to reduce headcount. If your employer makes you redundant in one of these protected situations, you have not just an unfair dismissal claim but potentially a claim for automatic unfair dismissal, which carries higher compensation levels.
Protected grounds for dismissal claims
You cannot be made redundant because of your age, sex, race, religion, disability, sexual orientation, or pregnancy. If your employer selects you for redundancy on any of these grounds, this is automatically unfair dismissal and also potential discrimination. The discrimination claim is separate from the redundancy claim, and both can be pursued in parallel. Similarly, you cannot be made redundant for taking maternity leave, paternity leave, or adopting statutory leave. You cannot be made redundant for requesting flexible working, for reporting a health and safety concern, or for whistleblowing on illegal activity in the workplace. These are all protected reasons, and redundancy used as a cover for dismissing someone for a protected reason is unlawful.
Union representatives, health and safety representatives, and certain employee representatives also have legal protection against redundancy selection. If you held one of these roles and were selected for redundancy when your role was not genuinely redundant, this is unlawful. GOV.UK’s guide to redundancy rights provides clear examples of each protected reason and what dismissal on those grounds constitutes in law.
How to respond if you believe the redundancy was wrongful
Your first step when you discover that the redundancy process was unfair is to get legal advice. Do not accept any severance package or settlement agreement without understanding your rights. A settlement agreement will restrict your ability to bring claims later, so it is critical that you understand what you are signing before you do.
Formal grievance and tribunal claims
If you want to challenge the redundancy, you should first raise a formal grievance with your employer setting out why you believe the redundancy was unfair or unlawful. Keep this factual, specific, and focused on the legal breaches. Include details of dates, what was said, what procedures were not followed, and how this affected you. The employer must respond to the grievance. If the response is unsatisfactory, you have the right to appeal. If the appeal is also unsuccessful, you then have the option to bring an employment tribunal claim. The tribunal will hear evidence from both sides and make a decision about whether the dismissal was unfair or unlawful.
Employment tribunal claims must be brought within three months of the date of dismissal. This time limit is strictly enforced. Do not delay in seeking legal advice if you believe the redundancy was wrongful. The Judiciary’s information on employment tribunal procedures explains the formal process, but having legal representation significantly improves your chances of a successful claim.
Compensation for wrongful or unfair redundancy
If your claim is successful, you are entitled to compensation for the unfair dismissal or wrongful redundancy. The compensation falls into several categories. The basic award is a statutory minimum, calculated on length of service and age. The compensatory award covers your actual losses: lost wages, lost benefits, costs of finding new employment, and general damages for the distress caused. In cases of automatic unfair dismissal, the compensation levels are higher and there is no upper limit. In ordinary unfair dismissal, the compensatory award is capped at the statutory limit, currently £105,493 or 52 weeks’ salary, whichever is lower.
Additionally, if the redundancy was discriminatory or your employer failed to consult and mistreated you egregiously, tribunal awards can exceed these limits. The calculation of compensation is complex and depends on your specific circumstances. The Law Society’s solicitor finder can connect you with an employment law specialist who can assess your specific situation and calculate what compensation you might be entitled to.
What is the difference between wrongful dismissal and unfair dismissal?
Wrongful dismissal is a breach of your employment contract (usually failure to give proper notice). Unfair dismissal is a breach of statutory employment rights (failure to follow fair procedures). You can claim both simultaneously. Wrongful dismissal claims can be brought in ordinary courts and carry no upper limit on compensation. Unfair dismissal claims go to employment tribunal and have statutory compensation caps unless the dismissal was automatically unfair.
How long do I have to claim unfair redundancy?
You must bring your claim to the employment tribunal within three months of your dismissal date. This is a strict deadline. If you miss it, the tribunal will not hear your case unless you can show that it was not reasonably practicable for you to bring the claim sooner. Do not delay in seeking legal advice once you realise the redundancy may have been unfair.
Can my employer make me redundant and then replace me with someone else?
No. If your employer makes you redundant and then rehires someone to do the same job within a short timeframe (typically within weeks), this is strong evidence that the redundancy was not genuine. The burden of proof is on your employer to show that the role was genuinely redundant and not a cover for dismissing you for another reason.
What if I signed a settlement agreement?
Settlement agreements restrict your ability to bring claims against your employer, but only for the specific issues covered in the agreement. Never sign a settlement agreement without legal advice. There are strict rules about what makes a settlement agreement legally valid, and if those rules are not followed, the agreement may not be enforceable. Employment law specialists often identify technical invalidity in settlement agreements that allow claims to proceed.
Can I be made redundant because of my age or disability?
No. Age discrimination and disability discrimination are illegal. If you can show that you were selected for redundancy because of your age or disability, this is automatically unfair dismissal and also potential age or disability discrimination. The compensation for discrimination is potentially higher than for ordinary unfair dismissal and is not subject to the same statutory caps.
What evidence should I keep about the redundancy?
Keep everything: redundancy letters, emails about the process, your contract, pay slips, details of what you were told, when you were told it, and who was involved in the decision. Write down your recollection of conversations soon after they happen, as contemporaneous notes are powerful evidence. Keep any evidence that others were treated more favourably or that your role was not genuinely redundant (such as job adverts for similar roles posted soon after your dismissal).
Get legal advice about your redundancy claim
Wrongful or unfair redundancy is one of the most common employment law issues that employees face. The law provides you with clear protections, but only if you understand your rights and take action within the proper timeframes. If you believe you have been wrongfully made redundant, do not accept the situation without legal advice.
Wolf Law specialises in employment law and redundancy claims. If you have been made redundant and believe the process was unfair or unlawful, contact Wolf Law to discuss your situation. They can review what happened, advise you on your rights, and represent you if you need to bring a tribunal claim. Many employment claims are handled on a no-win, no-fee basis, so you do not need to worry about legal costs. See how Wolf Law charges and get in touch to arrange a consultation with a qualified employment solicitor.
