The Chartered Institute of Personnel and Development have predicted that 725,000 public sector jobs and up to 900,000 private sector jobs will go in the next five years, as a result of spending cuts and the VAT increase. While some will go through retirement and natural wastage, a lot more workers will be facing redundancy. Here is a brief guide to the law around it.
Redundancy happens when an employer ceases to carry on its business, or stops or diminishes some part of its business. The law covers England, Scotland and Wales, with different legislation in Northern Ireland, though its provisions are similar.
For a worker to be made redundant, their dismissal has to be attributable to the reduction in employees. It doesn’t need to be motivated by a company in difficulties, any reorganisation that results in fewer staff will be a redundancy.
