This guide is maintained as a current resource for September 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.
Learn when a redundancy is considered unfair in England and Wales, including common grounds, legal requirements, consultation obligations, discriminatory practices, tribunal remedies and practical steps for employees.
In employment law in England and Wales, not all redundancies are lawful. Even where a role is genuinely no longer required, an employee may still have grounds to claim that the redundancy was unfair. Unfair redundancy typically arises when an employer fails to follow statutory procedures, uses discriminatory selection criteria, or does not consult properly. Understanding the legal framework helps employees assess their rights and enables employers to avoid costly tribunal claims.
Legal Framework
The principal legislation governing redundancy is the Employment Rights Act 1996. Section 139 defines redundancy, while sections 98 and 163–170 outline procedures for fair dismissal, including redundancy, and employees' entitlement to bring claims. Tribunals assess redundancy fairness by considering whether the employer had a genuine redundancy reason and whether the dismissal process was conducted reasonably and fairly.
Common Grounds for Unfair Redundancy
1. No Genuine Redundancy Situation
A redundancy is unfair if the job still exists, or the employer hires someone else to do substantially the same work. This suggests the redundancy was a pretext for dismissing the employee for another reason, such as performance or misconduct.
Example: An employee is dismissed claiming redundancy, but the employer immediately recruits a new employee to perform the same tasks. Tribunals may rule this is not a genuine redundancy.
2. Failure to Follow a Fair Selection Process
Where multiple employees are at risk, employers must apply objective and fair selection criteria, such as skills, experience, qualifications, and length of service. Selection based on discriminatory factors - including age, sex, race, disability, religion, maternity, or union membership - renders redundancy unfair.
Example: An employer selects a younger worker over an older employee solely based on age, rather than merit or performance. This may constitute age discrimination.
3. Inadequate Consultation
Employers must consult employees individually and, where applicable, collectively. Consultation must be meaningful and timely, allowing employees to ask questions, raise concerns, and suggest alternatives to redundancy.
- Individual consultation is required for fewer than 20 redundancies.
- Collective consultation applies to 20 or more redundancies at one establishment over 90 days, requiring consultation with employee representatives or trade unions.
Failure to consult can lead to claims for protective awards in addition to unfair dismissal compensation.
4. Not Offering Suitable Alternative Employment
If a suitable alternative role exists within the organisation, the employer must offer it to the employee at risk of redundancy. Refusal without good reason may affect redundancy pay entitlement, but failure to offer a genuine alternative renders redundancy unfair.
Example: A company has an available post in a different department that matches the employee's skills but does not offer it; the dismissal may be unfair.
5. Breach of Statutory Rights
Redundancy may be unfair if the employer breaches statutory obligations, such as:
- failing to provide written notice;
- ignoring contractual redundancy pay entitlements;
- breaching consultation or procedural requirements; or
- making redundancies to penalise employees for exercising legal rights (e.g., whistleblowing, maternity leave).
Tribunal Considerations
Employment tribunals examine two key factors:
- Substantive fairness: was there a genuine redundancy?
- Procedural fairness: was the process reasonable, transparent, and compliant with legal requirements?
Tribunals also consider evidence of alternatives considered, minutes of consultation meetings, selection criteria documentation, and any discriminatory practices.
Remedies for Unfair Redundancy
Employees who successfully claim unfair redundancy may receive:
- Compensation for loss of earnings;
- Basic award, calculated similarly to statutory redundancy pay;
- Compensatory award, reflecting financial loss due to unfair dismissal;
- Protective awards, where consultation requirements for collective redundancy were ignored.
Time limits for claims are typically three months less one day from the date of dismissal, following Acas Early Conciliation.
Practical Steps for Employees
Employees who believe a redundancy may be unfair should:
- Request written explanation of the redundancy reason.
- Review the selection criteria and consultation process.
- Seek advice from Acas, Citizens Advice, or a qualified employment solicitor.
- Raise internal grievances where appropriate.
- Engage in Acas Early Conciliation if considering a tribunal claim.
Documenting communications and decisions throughout the process strengthens a potential claim.
Key Takeaways
A redundancy can be unfair if it is not genuine, the selection is discriminatory, consultation is inadequate, suitable alternative employment is ignored, or statutory obligations are breached. Employees have legal avenues to challenge unfair redundancy, including employment tribunal claims for compensation. Awareness of rights, procedures, and time limits is essential for both employees and employers to ensure compliance and fair treatment.
