18. Redundancy

Abstract

This chapter examines the statutory regulation of redundancy, together with the extent to which a statutory redundancy payment offers sufficient compensation for the loss of the employee’s job, and the financial and emotional disruption caused by the need to search for other employment. It considers other protections available to the employee who is about to be, or has been, made redundant. It then assesses the evolution of the present statutory regime and whether it strikes an appropriate balance between the personal financial costs and adverse social costs shouldered by UK taxpayers and the economy on the one hand, and the costs to the productive economy and the labour market on the other. The alternatives to redundancy are also addressed.