Redundancy Guiding Principles

Definition – ERA 1996

Section 139(1) Employment Rights Act 1996:
“[…] an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is wholly or mainly attributable to —

  • the fact that his employer has ceased or intends to cease —
    • to carry on the business for the purposes of which the employee was employed by him, or
    • to carry on that business in the place where the employee was so employed, or
  • the fact that the requirements of that business —
    • for employees to carry out work of a particular kind, or
    • for employees to carry out work of a particular kind in the place where the employee was employed by the employer, have ceased or diminished or are expected to cease or diminish.”


This publication is intended for general summary guidance. It is not and should not be considered legal advice. Specific advice should be sought for specific cases; we cannot be held responsible for any action (or decision not to take action) made in reliance upon the content of this publication.