Redundancy Explained: Why It’s About the Role, Not the Person

Introduction

Redundancy is one of the most misunderstood areas of UK employment law. Many business owners and managers believe redundancy is linked to an individual’s performance, but that is incorrect. Redundancy is about the role, not the person. Understanding this distinction is essential for SMEs to avoid costly mistakes and legal claims, especially as businesses face rapid change and technological disruption.

What Is a Role in Employment Terms?

A role refers to the set of duties, responsibilities, and functions that exist to meet a business need. It is a position within the organisational structure, not the individual performing it.

• If your company stops offering a service, the role associated with that service may become redundant.
• If technology automates a task, the role that previously handled that task may no longer be required.

Even if someone is excellent at their job, if the role disappears, redundancy may still apply. Conversely, if someone is underperforming, that is a capability issue, not redundancy.

What If There Is Only One Person in That Role?

This is where confusion often arises. If you only have one person in a particular role, it might feel like you are making that person redundant. In reality, you are making the role redundant. The law requires you to think about the role, not the individual.

• If your business decides to stop offering a service and there is only one person delivering that service, the role is no longer needed. That person is affected because the role disappears, not because of who they are.

This distinction matters because redundancy should never be used as a shortcut for performance or conduct issues. Those situations require separate processes.

How Restructuring Works with Redundancy

Company restructures often involve changing the organisational structure to improve efficiency, reduce costs, or adapt to market changes. This can mean:

• Combining roles
• Removing certain functions
• Creating new positions with different responsibilities

When a restructure results in a role no longer being required, redundancy may apply. For example:

• If two similar roles are merged into one, the original roles may become redundant, and a fair selection process is needed to decide who fills the new role.
• If a department is closed, all roles within that department may be redundant.

Key point: Even during a restructure, redundancy is still about the role, not the person. Employers must:

• Clearly document the business reasons for the restructure
• Identify which roles are disappearing or changing significantly
• Follow a fair consultation and selection process

The Impact of AI and Automation on Roles

The rise of AI and automation is creating choppy waters for businesses. Tasks that were once manual are increasingly being automated, and this can significantly affect the roles within your organisation. For example:

• Administrative roles may be reduced as AI tools handle scheduling, data entry, and reporting.
• Customer service roles may change as chatbots and automated systems take on first-line queries.
• Entire functions may be restructured to integrate technology more effectively.

This does not mean every job disappears, but roles will evolve. Some will require new skills, while others may no longer be needed. When roles change substantially or become redundant due to technology, the same legal principles apply:

• Redundancy is about the role, not the person.
• A fair process and consultation are still required.
• Employers should consider retraining or redeployment before making redundancies.

Planning ahead is essential. SMEs should review workforce structures regularly and anticipate how technology will impact their business model.

What Does Redundancy Really Mean?

Redundancy occurs when:

• The business closes or relocates
• A department shuts down
• There is a reduced need for employees to carry out certain work
• Technology or restructuring changes the way work is done

It is not a way to dismiss someone for poor performance or conduct. Those situations require a separate disciplinary or capability process.

Common Misconceptions About Redundancy

• “We can make someone redundant because they’re not performing well.” Wrong. Performance issues must be managed through capability procedures.
• “Redundancy means the person is no longer needed.” Not quite. It means the role is no longer needed.
• “We can choose who we like to keep.” Selection must be fair and based on objective criteria.

Why Getting It Right Matters

Using redundancy incorrectly can lead to:

• Unfair dismissal claims
• Employment tribunal cases for unfair redundancy selection or failure to consult properly
• Financial penalties and compensation awards
• Damage to your reputation as an employer

Tribunal claims often arise when:

• Selection criteria are not objective or transparent
• Consultation is rushed or skipped
• Redundancy is used as a cover for performance issues

Following a fair process is essential:

• Have a clear business rationale
• Use objective selection criteria
• Consult with affected employees

How We Can Help

As an HR and employment law specialist, we can manage the entire redundancy process for you from start to finish, including:

• Reviewing your business case to ensure it meets legal requirements and is clearly documented.
• Designing fair and objective selection criteria to reduce the risk of tribunal claims.
• Handling employee consultations and providing all required letters and documentation.
• Advising on alternatives to redundancy, such as redeployment or changes to terms.
• Managing timelines and compliance so you meet all legal obligations.
• Representing and supporting you during complex situations, including handling employee queries and mitigating legal risks.

Whether you have no HR team or a small team that needs expert backup, we take the stress out of the process and ensure everything is done correctly.

Final Thoughts

Redundancy is about roles, not people. Even if there is only one person in a role, the focus must remain on the role itself. Restructures and technological changes often trigger redundancies, but the same principles apply: clear reasoning, fair process, and compliance with employment law. Getting this wrong can lead to serious legal and financial consequences, including tribunal claims. By understanding the correct process and principles, you protect your business and treat employees fairly.

Call to Action

If you’re considering redundancies or restructuring, speak to our HR experts today. We’ll manage the full process for you, ensuring compliance and reducing risk.

Contact us now for a free initial consultation.