This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
A detailed guide on redundancy and discrimination at work in England and Wales, explaining how employers must apply fair selection criteria, consult employees, consider alternatives, and avoid discriminatory practices, with tribunal remedies and employee rights.
Redundancy and discrimination are two significant legal issues in employment law in England and Wales. While redundancy is a lawful reason for dismissal, it becomes unlawful if it is influenced by discriminatory factors. Employees have statutory protections under the Employment Rights Act 1996 and the Equality Act 2010, and employers must ensure that redundancies are conducted fairly, transparently, and without bias. Understanding how discrimination can intersect with redundancy is critical for both employers and employees.
Legal Framework
Key legislation governing redundancy and discrimination includes:
- Employment Rights Act 1996 – sets out employees' rights in redundancy situations, including notice periods, redundancy pay, and fair selection;
- Equality Act 2010 – protects against discrimination on grounds of age, sex, race, disability, religion or belief, sexual orientation, and other protected characteristics;
- Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) – provides rules for collective redundancy consultation;
- Acas Code of Practice on Redundancy – offers guidance on fair processes and consultation.
Tribunals evaluate both redundancy fairness and whether discrimination has influenced selection or dismissal.
How Discrimination Can Occur in Redundancy
Discrimination in redundancy can arise when selection decisions are influenced, directly or indirectly, by protected characteristics. Common scenarios include:
- Age discrimination – older or younger employees being selected due to age rather than objective criteria;
- Gender bias – decisions disproportionately affecting male or female staff;
- Disability discrimination – overlooking reasonable adjustments or selecting employees based on disability;
- Other protected characteristics – religion, sexual orientation, race, or union membership influencing selection unfairly.
Indirect discrimination occurs when a neutral criterion disproportionately affects a protected group without objective justification.
Fair Redundancy Practices to Prevent Discrimination
Employers can reduce legal risk by:
- Establishing objective selection criteria – such as skills, experience, qualifications, performance, or attendance records;
- Applying criteria consistently – all employees in the selection pool must be assessed equally;
- Documenting decisions – maintain records of scores, assessments, and rationale;
- Consulting employees – meaningful discussion about redundancy proposals and alternatives;
- Considering redeployment and alternative roles – offering suitable alternatives before dismissing employees;
- Providing appeal processes – employees can challenge decisions if they believe selection was unfair.
Collective Redundancy Considerations
Where 20 or more employees are proposed for redundancy within 90 days, collective consultation duties apply. Employers must:
- Inform and consult employee representatives or trade unions;
- Provide written details about numbers, roles, and reasons;
- Explore ways to reduce redundancies or mitigate impact;
- Ensure selection does not unlawfully target protected groups.
Tribunal Claims and Remedies
Employees who believe redundancy was discriminatory or unfair may bring claims to an employment tribunal. Possible outcomes include:
- Compensation for unfair dismissal – including basic award and potential compensatory award;
- Compensation for discrimination – calculated based on financial loss, injury to feelings, and aggravated factors;
- Protective awards – if collective consultation obligations were breached.
Tribunals assess whether the employer acted reasonably, applied objective criteria, and followed statutory procedures.
Employee Rights
Employees affected by redundancy and potential discrimination have the right to:
- Be informed of the redundancy and selection criteria;
- Participate in consultation and discuss alternatives;
- Appeal redundancy decisions;
- Seek employment tribunal claims for unfair dismissal, discrimination, or protective awards;
- Receive statutory redundancy pay if eligible.
Key Takeaways
Redundancy must be carried out fairly and without discrimination. Employers in England and Wales must apply objective, consistent criteria, consult employees meaningfully, consider alternatives, and avoid decisions influenced by protected characteristics. Employees have the right to challenge unfair or discriminatory redundancies through employment tribunals. Adherence to legal requirements ensures lawful, transparent, and defensible redundancy decisions.
