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Redundancy vs Dismissal

Redundancy and dismissal are both ways an employment can end, but they have very different legal meanings, processes, and entitlements. Knowing which applies to you matters.

FeatureRedundancyDismissal
What it meansYour role is no longer needed by the businessYou are being ended from employment for a reason relating to you (conduct, capability, etc.)
Statutory pay entitlementStatutory redundancy pay (after 2 years service)No statutory redundancy pay — but notice pay applies
Consultation requiredYes — individual (always) and collective (20+ redundancies)Yes — disciplinary process and right to be accompanied
Right to appealYes — selection process can be challengedYes — internal appeal, then potentially Employment Tribunal
Can lead to unfair dismissal claimYes — if selection or process was unfair or discriminatoryYes — if dismissal was not for a fair reason or procedure was not followed
Notice periodContractual or statutory minimumContractual or statutory minimum (unless gross misconduct)

If your employer calls it redundancy but your role continues or a very similar role is filled shortly after, this may be unfair dismissal. Seek advice from Acas.

Disclaimer

The information on this page was correct at the time of writing. Amounts, thresholds, and rules may change. Always check the latest official guidance.