This chapter discusses redundancy law in the UK. Redundancy, which generally occurs when an employer reduces its workforce for economic reasons, is a common form of ‘potentially fair’ dismissal. There are three lawful ways in which selection for redundancy can be achieved: last-in-first-out, points-based approaches and employee selection processes. Redundancy payments must be equal to the statutory minimum and are often higher due to additional contractual arrangements which are more generous. Notice periods must also be honoured. UK redundancy law is often criticised because it is less procedurally cumbersome and requires employers to compensate less than is the case in other larger EU countries. This suggests that multi-national corporations dismiss their UK employees before counterparts elsewhere in Europe.
