Definition
Redundancy terminates the employment relationship because the job is being made redundant on a permanent basis – for example, due to the closure of a department, outsourcing or a decline in orders. The employer must prove that such a decision has been taken, that the need for the employee’s services has consequently ceased, and that continued employment elsewhere within the company is not possible. In addition, they must carry out a social selection process among comparable employees based on length of service, age, maintenance obligations and severe disability. Errors in the social selection process render the dismissal invalid.
Specialist solicitor in employment law
Over 15 years’ experience in employment law
Classification under employment law
A redundancy requires: (1) pressing operational requirements, (2) no possibility of continued employment, and (3) a correct selection of employees for redundancy. If any one of these elements is missing, the redundancy is open to challenge.
Distinction from related terms
Dismissal for conduct-related reasons: Dismissal on operational grounds is based on business reasons, such as the loss of a job. Dismissal for conduct-related reasons, on the other hand, is linked to controllable misconduct on the part of the employee.
Termination for personal reasons: This is based on the employee’s personal circumstances, such as illness or lack of suitability. In contrast, the causes of redundancy lie within the company.
Practical tip
Employers must demonstrate that a business decision has led to the loss of your job. Take a critical look: is your role really being made redundant – or is it simply being filled by someone else? Many redundancies fail at this very stage.
