What employers need to know about redundancy and severance pay

Redundancy is a situation where an employee's role is no longer required due to changes in your business operations. This refers to making an employee 'redundant'. For example, this might occur when you dismiss an employee due to a downturn in business, a company restructure, or where you introduce new technology to streamline your operations. An employee may be entitled to severance pay if their employment is terminated due to redundancy. This article provides a general overview of redundancy situations, outlines the process required to lawfully make an employee redundant, and explains when you may be required to make severance payments to an employee.

What is a Genuine Redundancy?