Redundancy occurs where the role or job of an employee has ceased to exist or diminished (eg using machinery or software in place of people) or the closure or reduction of a business is necessary (eg as a result of financial pressures). Staff can't be made redundant on grounds of performance or misconduct.
Unfortunately sometimes it's necessary to make redundancies in the course of running a business. Find out how to follow the correct procedure to avoid being taken to an Employment Tribunal.
If you need to make one or more members of staff redundant, you may have to select from a 'pool' of employees with similar roles. Ensure that you carry out any selection process fairly and objectively. You should inform anyone at risk of redundancy at the earliest possible stage and consult with them throughout the process. Redundancy pay may be required and any employees dismissed on grounds of redundancy should be given a chance to appeal against their dismissal. Alternatively if you need to make one member of staff redundant and that employee is in a unique role, there is no need to select from a 'pool' of employees, although staff must still be selected carefully and fairly. For further information read Redundancy.