What is sham redundancy?

Sham redundancy is when your employer falsely claims redundancy to dismiss you for a real reason like misconduct or poor performance. It's unfair dismissal and you can claim full compensation.

Sham redundancy is when your employer uses "redundancy" as a cover-up. They don't actually need to remove the job—they want you gone for another reason (you're slow, you complained, your manager dislikes you) so they call it redundancy. It's dishonest and it's unlawful.

Signs of sham redundancy

  • Your job role is advertised again weeks after "redundancy"
  • The role is restructured but essentially the same work
  • Your employer has never mentioned the job being at risk before suddenly declaring redundancy
  • Other employees doing similar work are kept on
  • The timing follows a complaint or request (maternity leave, flexible working, raising a concern)
  • Your employer offers you a new job on worse terms, then calls it redundancy when you refuse
  • No genuine consultation happens—it's just announced

How to prove it's sham

You'd need evidence showing the real reason: emails showing your employer blaming your performance, witness statements, proof the job was advertised again, comparators doing the same job. Document everything.

What happens if proven sham?

It's unfair dismissal, not genuine redundancy. You can claim unfair dismissal compensation, which is often higher than redundancy pay. You may also claim discrimination if the real reason is a protected characteristic (age, pregnancy, disability, etc.).

Last verified: May 2026