If an employee has qualifying service for unfair dismissal, in order for the dismissal to be fair, it must be for a fair reason. One fair reason is redundancy, although for the dismissal to be fair the redundancy must be genuine and the employer must have carried out proper procedures. The statutory definition of redundancy for the purposes of whether the dismissal is fair or unfair is defined by the Employment Rights Act 1996, section 139. This states that an employee who is dismissed shall be taken to be dismissed by reason of redundancy if the dismissal is wholly or mainly attributable to:
- the fact that his employer has ceased or intends to cease –
- to carry on business for the purposes of which the employee was employed by him; or
- to carry on that business in the place where the employee was so employed, or