The five potentially fair reasons for redundancy are:
- Business closure – The employer is ceasing to operate entirely.
- Workplace closure – The business is closing or relocating a particular site where the employee works.
- Reduced work requirements – There is less demand for the type of work the employee was hired to do.
- Restructuring – The business needs to operate more efficiently, leading to fewer roles.
- Technological changes – Automation or new systems have reduced the need for certain roles.
To ensure fairness, employers must follow a proper consultation process and apply objective selection criteria.
