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ARTICLE · 18 SEPTEMBER 2025

Redundancy Explained - Lawful Procedures

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London has the highest redundancy rate in the country and it is predicted to rise. Higher tax and commercial costs are forcing businesses to consider how they can save money.

United KingdomEmployment and HR
Mirko Prisco
Mirko Prisco
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London has the highest redundancy rate in the country and it is predicted to rise. Higher tax and commercial costs are forcing businesses to consider how they can save money.

Redundancy is rarely undertaken lightly, it is a procedure undertaken by businesses when there is the need to reduce the workforce, often to reduce costs. Redundancy is a forceful form of dismissal and should only happen when all other options have been considered. An employer must adhere to the fair procedures and rules when making a member of staff redundant. Failure to do so risks a claim for unfair dismissal.

The circumstances in which redundancy can be invoked are carefully defined under the Employment Rights Act 1996 the following are reasons for redundancy

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