What is redundancy?
In general terms, redundancy involves dismissing a member or group of staff from their job when:
- a whole business closes down, or is expected to close down
- a business closes down in a particular place, or is expected to close down
- the requirements of the business for employees to carry out work of a particular kind cease or diminish because:
- the business diminishes
- productivity increases
- the work is done in a different way
Do I deduct contributions from redundancy payments?
Contributions are not due on a redundancy payment, but are due on the following:
- holiday pay
- payment in lieu of notice
Where can I get advice and guidance on redundancies?
Jersey Advisory Conciliation Service (JACS) provides a free employment relations service to employers of all sizes. Information and guidance relating to redundancies can be viewed on their website.
What if I am making large numbers of redundancies?
If you are proposing to make 12 or more employees redundant at one establishment and those dismissals will take place within a 30 day period or less, there are additional consultation procedures that you must follow. You can get more information from JACS.
Information on collective consultation on the JACS website
You must also notify the Minister for Social Security using the redundancy notice form before giving any employees notice to terminate their contracts, or at least 30 days before the first dismissal takes effect, whichever is earlier.
Download Redundancy notice form (size 68kb)
What support can I get if I need to make redundancies?
Advisers can provide support to organisations where employees have been given notice on redundancies. Our advisers can visit your workplace to give advice on a one-to-one basis and to deliver presentations to small groups. They can tell you what advice and support is available through the States of Jersey, including benefits, jobseeking and training.
Completing the redundancy notice form allows the Social Security Department to make contact with you at the earliest opportunity to offer support where a large number of your employees are facing redundancy.
You can download information regarding the Insolvency benefit below.