Can Employees on Career Breaks Be Made Redundant?

Employees on a career break remain within the employment relationship, even if they are not actively working. A career break may arise through a formal sabbatical, unpaid leave, parental leave extension, or an informal agreement with the employer. The key legal question in redundancy situations is not whether the employee is currently working, but whether they remain employed and whether a genuine redundancy situation exists.

Under UK employment law in England and Wales, employees on career breaks can be selected for redundancy, but only where strict legal requirements are met. Employers must follow fair procedures, apply non-discriminatory selection criteria, and ensure compliance with statutory protections that may be stronger for certain types of leave.

What Counts as a Career Break in Employment Law?

A “career break” is not a single legal category but generally refers to an agreed period away from work while maintaining an employment contract. Common examples include:

• Unpaid sabbaticals
• Extended unpaid leave
• Career development breaks agreed with the employer
• Extended parental leave beyond statutory minimums (in some cases)
• Long-term flexible leave arrangements

During this period, the employment contract is usually suspended rather than terminated. This means the employee retains continuity of employment, which is relevant for redundancy rights.

Can Redundancy Apply During a Career Break?

Yes. An employee on a career break can be made redundant if:

• There is a genuine redundancy situation (such as closure of a workplace or reduced need for employees to carry out work)
• The employer follows a fair selection process
• The employee is still legally classed as an employee

Redundancy is defined as a dismissal attributable to the employer's need to reduce or cease work of a particular kind. This applies regardless of whether the employee is actively working at the time.

Government guidance confirms that redundancy selection must be fair, objective, and non-discriminatory, and must not be based on protected characteristics or status such as pregnancy or maternity-related absence.

Key Legal Principle: Being on Leave Does Not Remove Employment Rights

Employees on career breaks generally retain:

• Continuity of employment
• Protection against unfair dismissal (subject to qualifying rules)
• Rights to redundancy consultation
• Eligibility for redundancy pay (if service requirements are met)

However, the practical application of these rights depends on the type of leave and whether enhanced statutory protections apply.

Redundancy Selection While on a Career Break

Employers must ensure that employees on career breaks are included fairly in any redundancy process. This typically involves placing all affected employees into a “selection pool” and applying objective criteria.

Common lawful selection criteria include:

• Skills, qualifications, and experience
• Performance records
• Attendance history (excluding protected leave)
• Disciplinary record

Selection must not be influenced by discriminatory factors, including:

• Pregnancy or maternity-related absence
• Parental leave or other family-related statutory leave
• Disability-related absence
• Trade union activity

Selection that disadvantages employees because they are absent on protected leave may be automatically unfair.

Special Protection: Maternity and Certain Family-Related Leave

Employees on maternity leave, adoption leave, or shared parental leave have additional protections beyond those on ordinary career breaks.

In redundancy situations, employers must generally offer these employees any suitable alternative vacancy in priority over other employees, where such a role exists. Failure to do so may make the dismissal automatically unfair.

This means that although redundancy during leave is legally possible, the employer's obligations are more stringent where statutory family leave is involved.

Fair Process Requirements

To lawfully make an employee on a career break redundant, employers must follow a structured process:

1. Establish a genuine redundancy situation

The role must genuinely no longer be required, not simply replaced under a different title.

2. Identify a fair selection pool

Employees doing similar work must usually be grouped together, including those on leave.

3. Apply objective criteria

Scoring must be consistent, evidence-based, and capable of review.

4. Consult with the employee

Even if absent, employees must be informed and allowed to respond, typically via email, representatives, or scheduled meetings.

5. Consider alternative employment

Employers must consider whether suitable alternative roles exist before confirming redundancy.

Failure in any of these steps can result in claims for unfair dismissal.

What Happens if Consultation Is Difficult During a Career Break?

Employers are expected to make reasonable efforts to consult, even where an employee is abroad, on long-term leave, or unavailable day-to-day.

Common methods include:

• Email communication
• Written correspondence
• Virtual meetings
• Representation via a colleague or trade union representative

Lack of proper consultation can significantly weaken the employer's position in a tribunal claim.

Redundancy Pay Rights During a Career Break

Eligibility for redundancy pay depends on:

• At least two years' continuous employment
• Employee status under the contract
• A genuine redundancy dismissal

Where eligible, employees may be entitled to:

• Statutory redundancy pay
• Notice pay (or pay in lieu of notice)
• Accrued holiday pay
• Additional contractual severance, if provided

A career break does not normally break continuity of employment unless the contract has been formally terminated.

Common Legal Risks for Employers

Redundancy of employees on career breaks is a high-risk area for employers. Common issues include:

• Failure to include absent employees in the selection pool
• Use of absence-related criteria that indirectly discriminate
• Lack of consultation during leave
• Failure to offer suitable alternative roles
• Misidentifying a redundancy situation when the role still exists

Such failures may result in claims for unfair dismissal and discrimination, often leading to compensation awards at employment tribunal level.

Practical Examples

Example 1: Unpaid sabbatical

An employee on a six-month unpaid sabbatical can be included in redundancy selection if their role is at risk. They must still be consulted and scored fairly against others.

Example 2: Career break for travel

An employee on an agreed one-year career break remains employed. If the employer restructures during that period, the employee can still be selected for redundancy provided fair procedures are followed.

Example 3: Parental leave extension

If an employee extends leave beyond statutory parental leave, additional protections may apply, particularly around suitable alternative employment and non-discrimination.

Challenging a Redundancy Decision

Employees who believe they were unfairly selected while on a career break may consider:

• Raising a grievance internally
• Reviewing redundancy selection scoring and criteria
• Bringing a claim for unfair dismissal
• Considering discrimination claims where protected characteristics are involved

Strict time limits apply to employment tribunal claims, generally three months less one day from the date of dismissal.

Key Takeaways

Employees on career breaks can be made redundant, but only where a genuine redundancy situation exists and a fair, lawful process is followed. Being away from work does not remove employment rights or continuity of service. Employers must ensure proper consultation, objective selection criteria, and consideration of alternative roles, particularly where statutory leave protections apply. Failures in these areas can result in claims for unfair dismissal or discrimination.