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Published On: January 5, 2023 | Blog | 0 comments

Redundancies in the cost-of-living crisis

The record-breaking cost of living crisis and inflation rates that the country is being faced with in today’s economy is a worry for both businesses and families alike. We feel that it is important to consider how redundancies can and should be handled in this climate.


Looking to the Employment Rights Act 1996, a business can turn to redundancy as a reasonable response to the cost-of-living crisis. These involve the following:

  • If the employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed (closing the business)
  • If the employer ceased, or intends to cease to carry on that business in the place which the employee was employed (relocation of business)
  • Or, that the requirements of that business for employees to carry out work of a particular kind has diminished or are expected the cease or diminish.

The above does not mean that is automatically justified purely on the basis that there is less work to do, or less of a business need.

An employer must demonstrate that redundancy is necessary in the light of one or all the above factors. While the above list does not automatically mean that a redundancy dismissal is justified, an employer may cite the cost-of-living crisis as a genuine reason for redundancies and that could be acceptable if supported by legitimate business reasons, although justifying profits or falling demand is not strictly necessary.

The recent collapse of online retailer Made.Com, saw hundreds of staff being made redundant as a result of the current climate. Similarly, a rising number of redundancies are being made within the head office of Joules the clothing brand. This comes as a direct result of the current, tough trading and economic environment and indeed the cost-of-living crisis.

I have been made redundant- what are my options?

In the context of the current cost of living crisis, and the troubles faced by many companies not too dissimilar from the above, here at Anthony Gold, we have recently experienced a flurry of new Settlement Agreements where companies are offering enhanced redundancy packages to support employees where possible despite the unfortunate circumstances resulting in termination of employment.

How can Anthony Gold help you?

Here at Anthony Gold, we have a dedicated employment department with extensive experience in dealing with redundancies and relevant advice around that as well as Settlement Agreements. We can assist with advice to support a company undertaking a fair redundancy process or indeed advising employees to ensure that they are being properly consulted and managed in a redundancy process.

If you are worried about your current position amid the cost-of-living crisis and would like to speak to a solicitor on a confidential and no obligations basis contact us on 0207 940 9000 or

* Disclaimer: The information on the Anthony Gold website is for general information only and reflects the position at the date of publication. It does not constitute legal advice and should not be treated as such. It is provided without any representations or warranties, express or implied.*

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