Redundancy vs Dismissal: Key Differences Explained
by Joseph | 9 Oct 2025
The words redundancy and dismissal are often used together, and it is easy to get confused about what they actually mean. Both are types of employment ending, but the reasons and rights attached to each are very different. Understanding the difference between redundancy or dismissal can help you know where you stand legally and what support you are entitled to.
What Is Redundancy?
Redundancy happens when your job role is no longer needed. It is not about performance or conduct, but about business need. For example:
- The company is closing or downsizing.
- The work you were doing is no longer required.
- The business is relocating.
- Technology has changed the way the work is done.
If you are made redundant and you have been with your employer for two years or more, you may be entitled to statutory redundancy pay, as well as a notice period.
Employers must also follow a fair redundancy process, which usually involves consultation. More information: https://www.gov.uk/redundancy-your-rights
What Is Dismissal?
Dismissal is when your employer ends your employment for reasons other than redundancy. This can be for:
- Misconduct (such as breaking workplace rules).
- Poor performance (if you are not meeting reasonable standards).
- Long term illness that prevents you from doing your role.
- Another substantial reason, such as a breakdown in trust.
There are different types of dismissal, including fair, unfair, constructive, and wrongful dismissal. Unlike redundancy, dismissal is often linked to individual performance or conduct. More information: https://www.gov.uk/dismissal
Key Differences Between Redundancy and Dismissal
- Reason: Redundancy is about the role no longer being needed, dismissal is about the person’s performance, conduct, or another reason.
- Entitlements: Redundancy can come with redundancy pay if you qualify, dismissal usually does not (unless it is unfair or wrongful and you win a claim).
- Process: Redundancy must involve consultation, dismissal must follow a fair disciplinary or capability procedure.
- Impact on Record: Being made redundant does not reflect negatively on you as an employee, dismissal can carry more stigma, though it depends on the circumstances.
Why the Distinction Matters
Knowing whether your situation is redundancy or dismissal is important. It affects your rights to pay, notice, and potentially compensation. If you are unsure, ask your employer to confirm in writing what type of termination applies to you. If you believe you have been dismissed unfairly or labelled as redundant incorrectly, you can contact ACAS for free advice: https://www.acas.org.uk or seek support from Citizens Advice: https://www.citizensadvice.org.uk.
In Summary
Redundancy and dismissal both end employment, but they are not the same thing. Redundancy is about a job role no longer existing, while dismissal is about issues related to an individual. Understanding the difference between redundancy or dismissal gives you clarity and ensures you can protect your rights.