In today’s fast-changing business environment, many employers face difficult decisions—especially during a restructure, which can sometimes result in job losses. If you’re an employee, being told your role is at risk can feel overwhelming. Restructuring often signals uncertainty about your future, including the possibility of redundancy.
So, can you be made redundant due to restructuring? The short answer is yes—but only if it’s a genuine redundancy situation and your employer follows a fair process. Redundancy occurs when your role is genuinely no longer needed due to organisational change. This guide explains your rights, your employer’s responsibilities, and how UK employment law handles redundancy during restructuring.
What Does Redundancy Mean in Employment Law?
Redundancy happens when your job is no longer needed. Under UK law, this includes:
- The business closing down entirely
- A specific workplace shutting
- A reduced need for employees to do a particular kind of work
- A restructuring process that removes or changes job roles
Restructuring and redundancy often go hand in hand. A reorganisation may merge roles, shift responsibilities, or cut down team sizes—making some positions redundant. In these situations, redundant employees are those whose roles are eliminated due to business changes. But the process must be handled properly to be lawful.
Can You Be Made Redundant Due to Restructuring?
Yes—you can be made redundant due to restructuring if your role genuinely disappears. Employers may make redundancies as part of wider organisational change. Examples include:
- Merging multiple roles into one
- Automating tasks
- Moving operations to another location
- Removing management layers to reduce costs
However, a redundancy is only lawful if:
- It’s genuine (not used to remove someone unfairly)
- A proper consultation process takes place
- The selection criteria are fair and non-discriminatory
- Alternatives to redundancy are considered
- A fair dismissal process is followed
If the redundancy process isn’t followed, you may have grounds for an unfair dismissal claim.
Once redundancy is confirmed, your employer must give the correct notice period. How much notice depends on your length of service and statutory minimum entitlements.
What Counts as a Genuine Redundancy Situation?
A genuine redundancy means the role itself is no longer required—not just that someone wants to replace you.
You might face redundancy if:
- Your job is being automated
- Your duties are being absorbed by another team
- Your position is one of several being cut during a restructure
- The work you do is no longer needed at your location
Employers must focus on the job—not the individual. Simply renaming a position or shifting tasks to another employee doesn’t create a genuine redundancy.
How Are Employees Selected for Redundancy?
The way employees are selected for redundancy is crucial. Employers must carry out a fair selection process to avoid the risk of unfair dismissal.
First, they identify the pool of affected employees—those whose roles are at risk due to the restructuring and redundancy process. Then they apply objective and non-discriminatory selection criteria.
Common criteria include:
- Length of service
- Attendance record
- Disciplinary record
- Skills and qualifications relevant to the business’s future needs
Relying solely on length of service can risk age discrimination, so a balanced approach is key. Employers should also explain the selection process clearly and allow you to ask questions or raise concerns.
Where possible, they must offer suitable alternative employment and give you time to look for another role. If the selection feels unfair or inconsistent, you may be able to challenge it.
What Is the Correct Redundancy Process and Collective Consultation?
To lawfully make someone redundant, employers must follow a fair redundancy process:
- Identify affected employees
- Notify them and explain the reasons
- Begin individual or collective consultation (if 20 or more redundancies are proposed)
- Apply clear, fair selection criteria
- Explore suitable alternative employment
- Provide the correct notice period or pay in lieu of notice
- Pay statutory redundancy pay (if eligible)
Your statutory notice period is based on your years of service—usually one week’s notice per full year, up to 12 weeks. During the notice period, you’re entitled to reasonable time off to find new work or arrange training.
What Happens in Collective Redundancy Situations?
If a UK business plans to make 20 or more employees redundant within 90 days, this triggers a collective consultation requirement. Employers must consult with employee representatives or a recognised trade union.
The consultation must begin:
- At least 30 days before the first dismissal (if 20–99 employees are affected)
- At least 45 days before (if 100 or more employees are affected)
Employers must provide information on:
- The reasons for redundancy
- The number of employees affected
- The selection criteria
- The proposed timeline
- Alternatives being considered
Failure to follow the consultation process can result in unfair dismissal claims and a protective award of up to 90 days’ pay per employee.
What Are Your Rights and Statutory Redundancy Pay?
If you’ve been employed for two years or more, you’re entitled to:
- A statutory redundancy payment, based on your age, weekly pay, and length of service
- Your full statutory notice period
- Time off to look for new work
- The chance to appeal or raise a grievance
- Priority access to any suitable alternative roles
You may also be entitled to contractual redundancy pay if your employment contract offers more than the legal minimum.
If your role is transferred to a new employer, protections under TUPE apply, and redundancy must still follow proper procedures.
Are There Alternatives to Redundancy?
Yes. Employers are expected to consider alternatives before making redundancies, such as:
- Redeployment to another department
- Job sharing or part-time work
- A move to another location (if reasonable)
- Offering voluntary redundancy packages
Employers may also use temporary workers to manage workload and avoid making permanent staff redundant. If they fail to offer you a secure alternative employment opportunity when one exists, the redundancy may be considered unfair.
Common Mistakes Employers Make
Mistakes during restructuring and redundancy often lead to legal issues, such as:
- Using redundancy to mask performance concerns
- Failing to properly consult with employees
- Ignoring staff on maternity leave or sick leave
- Applying discriminatory or unclear selection criteria
- Poor documentation of the process
- Mismanaging TUPE redundancy after a business transfer
These missteps can result in unfair dismissal, discrimination claims, or breach of contract.
FAQs: Redundancy and Restructuring
Can I be made redundant if my job still exists with a new name?
No. If the duties are largely the same, the redundancy may not be genuine.
Should I be offered another job in the company?
Yes. If a suitable alternative employment role exists, it must be offered.
What’s a trial period?
You have the right to a 4-week trial period in an alternative role. This lets you assess if it’s a good fit.
Can I be made redundant while on maternity leave?
Yes, but you must be given first refusal on any suitable vacancies.
Can I challenge my redundancy?
Absolutely. You can raise a grievance or make a claim to an employment tribunal.
Summary: What to Remember
- Redundancy due to restructuring is lawful if it’s genuine and fair
- You’re entitled to consultation, notice, and redundancy pay
- Employers must use fair selection criteria and explore alternatives
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If something doesn’t feel right, speak up—your rights are protected