What is Redundancy?
Redundancy is when an employee or employees lose their jobs because either:
- Their job role is no longer needed within the company
- The company is moving to a location from which their role cannot be performed
- The company is being restructured so someone else is doing role
- The company has been taken over
- The company has gone into administration, insolvency or has gone bankrupt.
What does it mean when a business goes into administration?
Administration occurs when a business is in debt with its creditors and an ‘administrator’ is appointed to help deal with these debts, through shutting down, selling or liquidising parts of the business. A company will go into administration either to rescue the company or to begin the process of liquidation. It does not necessarily mean the end of the business, but it can result in redundancies.
Visit our redundancy web page for more information on our Skills Support for Redundancy programme.
Next in our redundancy guide, find out about the redundancy selection process.