Redundancy vs Dismissal

Redundancy and dismissal are both ways an employment can end, but they have very different legal meanings, processes, and entitlements. Knowing which applies to you matters.

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Feature	Redundancy	Dismissal
What it means	Your role is no longer needed by the business	You are being ended from employment for a reason relating to you (conduct, capability, etc.)
Statutory pay entitlement	Statutory redundancy pay (after 2 years service)	No statutory redundancy pay — but notice pay applies
Consultation required	Yes — individual (always) and collective (20+ redundancies)	Yes — disciplinary process and right to be accompanied
Right to appeal	Yes — selection process can be challenged	Yes — internal appeal, then potentially Employment Tribunal
Can lead to unfair dismissal claim	Yes — if selection or process was unfair or discriminatory	Yes — if dismissal was not for a fair reason or procedure was not followed
Notice period	Contractual or statutory minimum	Contractual or statutory minimum (unless gross misconduct)
Statutory pay entitlement	Statutory redundancy pay after 2 years: 0.5–1.5 weeks pay per year	No redundancy pay; notice pay and accrued holiday must be paid
Right to written reasons	Yes — employee can request written reasons for selection	Yes — employees with 2+ years service can request written reasons

If your employer calls it redundancy but your role continues or a very similar role is filled shortly after, this may be unfair dismissal. Seek advice from Acas.

Related guides

Redundancy Basics

Redundancy occurs when your employer needs fewer people to do a particular type of work. If you are made redundant lawfully, you may be entitled to statutory redundancy pay, proper consultation, and your full notice entitlement. Knowing your rights helps you challenge a flawed process.

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Unfair Dismissal Overview

Being dismissed from a job is stressful. If your employer lacked a valid reason or did not follow a fair procedure, you may have been unfairly dismissed and be entitled to compensation. This guide explains the law and what to do.

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Employment Tribunal Basics

The Employment Tribunal is an independent judicial body that resolves disputes between workers and employers. It is less formal than a civil court but follows strict procedures and deadlines. This guide walks you through the key steps.

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Final Pay and Deductions

When your employment ends, your final pay should include everything you are owed — not just your last month's wages. Knowing what you are entitled to receive, and what deductions are lawful, helps you identify if you have been underpaid.

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Disclaimer

The information on this page was correct at the time of writing. Amounts, thresholds, and rules may change. Always check the latest official guidance.