Jersey: Jersey Redundancy Legislation - Traps for the Unwary

Last Updated: 12 January 2011
Article by Michael Little

Most Read Contributor in Jersey, September 2016


On 1 January 2011 amendments to the Employment (Jersey) Law 2003 creating rights on redundancy take effect. The new provisions mean that for the first time in Jersey there will be statutory redundancy payments for employees similar to those operating in the United Kingdom. This legislative change introduces a degree of complexity to employers which will require careful handling.

What is Redundancy?

It is important to understand what is meant by redundancy. Article 2 of the Employment Law defines redundancy as effectively meaning:

  • A cessation of business by the employer
  • A cessation of business in the place where the employee worked
  • The need for employees to carry out work of a particular kind has ceased or diminished, or
  • The need for employees to carry out work of a particular client in a particular place has ceased or diminished.

In applying these grounds the employers' business and any associated businesses are treated as one business. Where care should be taken is to avoid using redundancy as a misnomer for dismissal. The need for an employee to fulfil a role does not cease due to issues of conduct or capability. The role ceases because the role rather than the employee is not required.

Eligibility for a Redundancy Payment

The new law creates an entitlement to a redundancy payment where an employee is dismissed by reason of redundancy. The employee to be entitled to redundancy must have been continually employed for a period of two years and the claim must be made within the required time limits.

Time Limits

For employee to claim redundancy one of the following events has to occur within six months after termination.

  • A redundancy payment is agreed;
  • The employee gives notice in writing of a claim for a redundancy payment to the employer;
  • The employee refers the claim to the Employment Tribunal; or
  • The employee makes a claim of unfair dismissal to the Tribunal.

If one of these four events occurs the employee can at any time then present a claim to the Tribunal for a redundancy payment. The Tribunal has a discretion as to whether or not to allow a redundancy payment claim to be made. The longer the delay the greater the risk of such a claim being rejected.

Payment of Redundancy Pay

The employee who is made redundant will be entitled to a week's pay for each year worked for the employer. The amount of this payment may be set by the Minister for Social Security. If no limit is set by the Minister then the amount will be the most recent figure for average weekly earnings published by the States of Jersey. The current figure is £630.

Inter Relationship With Unfair Dismissal

Redundancy should firstly not be used to remove employees where there are issues of conduct or capability. Employers should continue to follow existing procedures to address those issues.

Secondly, employees can claim unfair dismissal after six months but are only eligible for redundancy payment after a period of two years. As the financial consequences of unfair dismissal and redundancy payment are different, there may be arguments for employees engaged for more than six months but less than two years as to whether they are redundant or unfairly dismissed. If they are redundant and the procedure for selecting for redundancy is a fair one then there will be no entitlement or redundancy payment and the dismissal will also be fair.

The amounts of compensation payable for unfair dismissal are different from the amount of any redundancy payment and are greater except for very long serving employees. The Tribunal also has a discretion to reduce a payment for unfair dismissal. A redundancy payment however cannot be reduced. Employers also need to take care in selecting employees for redundancy. An unfair selection will entitle an employee to both the redundancy payment and the right to claim unfair dismissal. The amendments do not consider the inter-relationship between these payments however if UK practice is followed by the Tribunal as is likely, these will not be able to be set off against each other.

The Approach to Selection

In deciding whether employees are to be made redundant the employer firstly needs to consider whether there exists one of the redundancy scenarios required by Article 2.

In dealing with employees the employer must then follow four principles of fairness which should also be considered in situations of redundancy:

  1. A duty to consult;
  2. A duty to warn of redundancy;
  3. A duty to establish fair criteria for selection of employees for redundancy;
  4. A duty to explore alternatives to redundancy.

In practice this requires:

  • Employers to be explicit in warnings of redundancy once the employer from a business perspective considers it likely there will be a redundancy scenario;
  • The reasons for selecting an employee for redundancy should be discussed with the employee and the employee given a chance to respond;
  • Alternatives to dismissal should have been looked at such as a cut in wages.

Age Limits

There is no age limit on a redundancy payment.

Offering Alternative Employment

An employee will not have a right to redundancy payment where a new offer of employment is made within four weeks of the redundancy taking effect. This rule will not apply however if the terms of employment are not the same and within four weeks after starting the new role either employee or employer gives notice and the main reason for doing so is that the new position is not suitable.

The Tribunal in deciding whether or not to order redundancy payment can take into account whether or not the employee has unreasonably refused an offer of the same or other suitable alternative employment.

Time Off to Look for New Work or Training

Once an employee has been provided with notice of redundancy the employee during the notice period will have rights to take time off to look for alternative positions such as attending interviews or to attend training courses for future employment. The employer is obliged to pay the employees up to 40% of their salary during such absence.

Other Changes

The amendments also bring in two other changes of significance.

Firstly, the right to minimum periods of notice employees are entitled to receive are being altered to create a sliding scale of one week's pay for each complete year of service up to a maximum of twelve weeks. This reduces slightly the current provisions and means that for the first twelve years of employment the amount of any notice pay and redundancy pay will both be a week for each year of service.

Secondly, the upper age limit for unfair dismissal claims is being removed. This is because otherwise employees would have had the right to claim redundancy after 65 but not unfair dismissal. From an employers perspective it is therefore key that any contract of employment contains an express retirement age.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.