Making an Unfair Redundancy Claim

Redundancy is a lawful reason for ending an employment relationship in England and Wales when an employer genuinely needs to reduce the workforce. However, redundancy must be carried out fairly and in accordance with employment law. An employee who believes their redundancy was unfair - for example, because the employer failed to follow proper procedure, applied biased selection criteria, did not consult meaningfully, or used redundancy as a pretext for dismissal - may be able to bring a claim to an employment tribunal. This article explains when a redundancy can be challenged, the process for making an unfair redundancy claim, evidence and preparation, the role of early conciliation, time limits, and practical considerations for prospective claimants.

What Does “Unfair Redundancy” Mean?

Redundancy becomes unfair when an employer does not handle the process in a way that is reasonable, objective and compliant with legal standards. Redundancy is a potentially fair reason for dismissal, but employers must:

• consult employees and consider alternatives to redundancy;
• use fair and objective selection criteria; and
• apply those criteria consistently and transparently.

If these steps are not followed, or if the redundancy is used as a disguise for dismissing an employee for another reason, the dismissal can be challenged as unfair dismissal at a tribunal.

Common Grounds for an Unfair Redundancy Claim

Employees may have grounds to claim unfair redundancy where:

• Consultation was inadequate or absent. Employers must consult with affected employees and genuinely consider their views and alternatives to redundancy.
• Selection criteria were unfair or discriminatory. Criteria must be objective, consistently applied and non‑discriminatory - for example based on skills, performance or experience. Poorly justified or biased criteria may lead to a claim.
• Suitable alternative employment was not considered. Employers should identify and offer other roles if available.
• The redundancy is not genuine. If the employer still requires the role to be performed or hires someone else shortly after dismissing the claimant, the redundancy may be a sham.
• Discriminatory or automatically unfair motives existed. If the employee was chosen because of a protected characteristic or for exercising a statutory right (such as whistleblowing), this can convert the claim into discriminatory or automatically unfair dismissal. These scenarios do not always require a qualifying period of service.

Eligibility and Qualifying Conditions

To bring an unfair dismissal claim linked to redundancy, the claimant generally must be an employee and have completed the required qualifying period of service - usually two years' continuous employment at the date of redundancy. This minimum period is required for most ordinary unfair dismissal claims but does not apply to instances of automatically unfair dismissal, such as discrimination or retaliation for exercising statutory rights.

Steps to Take Before Making a Tribunal Claim

1. Raise Concerns with Your Employer

Before formal proceedings, it is good practice to raise concerns informally with your manager or HR department and, if necessary, use your employer's formal grievance and appeal processes. This not only gives your employer an opportunity to address the issues but also demonstrates that you attempted resolution internally. Acas suggests that tribunals may view a failure to attempt internal resolution unfavourably when assessing remedy.

2. Gather Evidence

Assemble all relevant documents and records, such as redundancy notification letters, emails, minutes of meetings, and copies of redundancy selection criteria. Maintain a clear timeline of events and communications, as tribunals place heavy emphasis on documentary evidence.

3. Notify ACAS Early Conciliation

Before submitting a tribunal claim, you must notify Acas (the Advisory, Conciliation and Arbitration Service) that you are considering a claim. This triggers an Early Conciliation process, where an Acas conciliator will contact both parties to encourage a settlement and help avoid tribunal proceedings. Early conciliation is voluntary but mandatory before a tribunal claim in most cases. The time limit for tribunal claims is paused (“tolling”) during early conciliation.

Acas Early Conciliation

Early conciliation involves a neutral Acas officer contacting both you and your employer to facilitate dialogue and possible settlement. It does not provide legal advice, and you or your employer are free to accept or reject settlement proposals. If conciliation fails or is declined, Acas will issue an Early Conciliation Certificate, which you must include when submitting a formal tribunal claim. Notification to Acas must occur within the statutory time limits applicable to your complaint.

Time Limits for Bringing a Claim

Strict time limits govern when you can submit a claim to an employment tribunal:

• For most unfair dismissal claims, including those linked to redundancy, you must notify Acas and later submit your tribunal claim within three months less one day of the effective date of termination.
• For claims about statutory redundancy pay, a longer limit of six months less one day may apply.

Early conciliation pauses the time limit once you notify Acas, and after receiving the Acas certificate you usually have at least one month to submit a claim. Missing these deadlines can result in your claim being rejected unless there are exceptional circumstances.

Making the Tribunal Claim

Once you receive the Early Conciliation Certificate, you can lodge your claim with an employment tribunal using the ET1 form via the official tribunal portal. You will need the certificate number and details of your claim, including evidence of why you believe the redundancy was unfair. Your employer is then given the opportunity to respond, after which the tribunal will consider case management directions, disclosure of documents and possibly a hearing.

What the Tribunal Will Consider

An employment tribunal will assess:

• Whether redundancy was genuinely required;
• Whether proper consultation took place;
• Whether the selection criteria were fair, objective and consistently applied;
• Whether suitable alternative roles were considered; and
• Whether any discriminatory or automatically unfair factors influenced the redundancy decision.

Evidence such as selection matrices, correspondence and witness testimony often plays a key role. Tribunals focus on the reasonableness of the employer's actions in all the circumstances.

Possible Outcomes

If your claim is successful, remedies can include:

• Compensation for the unfair dismissal, which typically comprises a basic award (similar to statutory redundancy pay) and a compensatory award for actual financial loss;
• Reinstatement or re‑engagement in rare cases where appropriate; and
• Other relief as the tribunal deems just and equitable.

In discrimination‑linked cases, compensation may be uncapped, subject to statutory rules.

Practical Considerations

• Start early: Promptly notify Acas and prepare evidence to avoid missing deadlines.
• Record everything: Maintain clear records of redundancy communications, meetings and criteria applied.
• Seek advice: Legal advice from a solicitor, union representative or specialist adviser can help strengthen your claim and clarify complex points.
• Be realistic: Tribunal claims involve procedural requirements, evidence disclosure and potential hearings; thorough preparation improves prospects.

Key Takeaways

An unfair redundancy claim allows employees in England and Wales to challenge a redundancy dismissal that was not handled fairly or was a cover for an unlawful motive. To pursue a claim, you must:

• gather clear evidence of procedural failures or bias;
• raise concerns with your employer and use internal grievance processes where appropriate;
• notify Acas Early Conciliation within statutory time limits; and
• submit a tribunal claim once you receive an Early Conciliation Certificate.

Employment tribunals assess whether the redundancy was genuine and fairly carried out, and successful claims can result in financial compensation or other remedies. Careful preparation, understanding legal thresholds and respecting deadlines are essential to navigate the process effectively.

James William Steven Parker

James is the founder of UKLegalGuides.com and a former agent at the Ministry of Justice (UK). With a background in processing legal claims, he launched this platform to make the laws of England and Wales accessible to everyone.