Terminology

The words in the room

Nobody will explain these to you. You are the one who is supposed to know them already, so you nod, and you look them up afterwards in a browser window you close quickly.

Here they are in one place, in plain English, with the source for each one named and linked.

The words that are not legal at all

These have no statutory meaning anywhere. They are workplace usage, which is exactly why nobody defines them.

At risk
The phrase used to tell somebody their role may be removed, before anything is decided. It is not a legal status and it carries no fixed meaning. In practice it is the sentence a man remembers for a decade, so what it actually communicates depends entirely on who says it and how.
The pool
The group of people whose roles are being considered together. In UK guidance the term is "selection pool", and Acas states that a pool "should include all roles that are the same or similar" and that an employer may need more than one.

Source: Acas, Managing a redundancy process: select employees. Checked 18 September 2026.

Bumping
Removing a different person from a role that is not itself being cut, so that somebody whose role has gone can move into it. It has no statutory definition and it is where a great deal of unfairness lives, because the person bumped never saw it coming.
Outplacement
A service bought by the employer to help departing staff find work: CV help, interview practice, a consultant for a few sessions. Purely commercial, with no statutory standing. Quality varies enormously, and the people who received it rarely mentioned it either way afterwards.
Garden leave
Being paid while told not to attend work, usually during a notice period. It has no statutory definition in the UK and depends on the contract. It is a different situation from redundancy and the network has a separate guide for the man in it, linked in the footer of this page.
The announcement
The company-wide communication. It has no legal status and it is almost always the wrong channel for the people affected: the single thing men never forgave was finding out through a general message, a rumour, or a calendar invitation rather than from a person.

The same event, under different names

What you are doing has a different word in almost every English-speaking jurisdiction, and the word usually carries a different legal test with it. If you are searching for guidance and finding nothing useful, this is often why: you are using your own country's word.

Redundancy — United Kingdom, Ireland, Australia, New Zealand
The Fair Work Ombudsman in Australia puts the common thread most plainly: "Redundancy is when a business no longer needs an employee's job to be done by anyone." Employment New Zealand describes it as where employment "is terminated because their position has become surplus to the requirements of the business". Same word, different statutes: the Fair Work Act 2009 in Australia, the Protection of Employment Acts 1977 to 2024 in Ireland.

Sources: Fair Work Ombudsman, Redundancy and Employment New Zealand, Redundancy. Checked 18 September 2026.

Layoff, mass layoff and plant closing — United States
"Layoff" in American usage covers what the rest of the English-speaking world calls redundancy, and it is not temporary. The federal WARN Act sets defined events: a covered mass layoff occurs, per the Department of Labor, "when 50 to 499 employees are affected during any 30-day period at a single employment site... if these employees represent at least 33 percent of the employer's workforce where the layoff will occur, and the layoff results in an employment loss for more than six months", with the 33 per cent test dropping away at 500 or more. WARN "generally covers employers with 100 or more employees" and requires "notification 60 calendar days in advance of plant closings and mass layoffs". States add their own, often stricter, versions.

Source: US Department of Labor, Notices for Plant Closings and Mass Layoffs. Checked 18 September 2026.

Reduction in force, or RIF — United States corporate usage
Internal company language rather than a statutory term, used for the exercise as a whole. It has no definition in the WARN Act and confers nothing; whether a given RIF is a covered event under WARN depends on the numbers, not on what it is called internally.
Lay-off and group termination — Canada
Canada distinguishes them. A temporary lay-off is where an employer lays somebody off "for a short term with the intention to recall the employee back to work", and it becomes a termination when those conditions no longer apply. A group termination, under the federal Canada Labour Code, "is the termination of employment of 50 or more employees working at a single industrial establishment" either on the same date or within any four-week period, and requires written notice to the Labour Program's Head of Compliance and Enforcement "at least 16 weeks before the termination of employment is to take effect". Provincially regulated employers follow their own province's rules instead.

Source: Government of Canada, Termination, layoff or dismissal. Checked 18 September 2026.

Retrenchment — South Africa
The term for dismissal based on the employer's operational requirements, under sections 16, 189 and 189A of the Labour Relations Act. The Department of Employment and Labour states that "a company may only retrench people as a last resort", and that consultation must seek consensus on avoiding retrenchments, reducing the number, changing the timing, softening the effect, the severance package and how those affected were chosen. Section 189A brings in additional requirements by size: for an employer of 50 to 200 staff it applies at 10 or more; 201 to 300 at 20 or more; and so on to 50 or more in an employer of 501 or more.

Source: South African Department of Employment and Labour, Retrenchment and your legal rights. Checked 18 September 2026.

Retrenchment — Singapore
The same word, an entirely separate system. The Ministry of Manpower requires an employer registered in Singapore with at least 10 employees to notify the Ministry of any retrenchment, within five working days of notifying the affected employee.

Source: Singapore Ministry of Manpower, Mandatory Retrenchment Notifications. Checked 18 September 2026.

Collective redundancy — Ireland
Ireland sets its threshold by sliding scale over any 30 consecutive days: 5 or more where 21 to 49 are normally employed; 10 or more where 50 to 99; 10 per cent or more where 100 to 299; and 30 or more where 300 or more. The Workplace Relations Commission states that consultation must run "at least 30 days" and begin "at the earliest opportunity and at least 30 days before the first notice of dismissal is given", that no notice of redundancy may be issued during that process, and that dismissals cannot take effect until at least 30 days after the Minister has been notified.

Source: Workplace Relations Commission, Collective Redundancies. Checked 18 September 2026.

The notification threshold — Australia
Included because it is the lowest of the ones on this page and therefore the easiest to cross without noticing. The Fair Work Ombudsman states that an employer considering making 15 or more employees redundant must give Services Australia written notification before the employees are made redundant, setting out the reasons, the number and categories of employees likely to be affected, and the timing.

Source: Fair Work Ombudsman, Redundancy. Checked 18 September 2026.

Despido colectivo — Spain
Spain's term, set out in full in the Spanish section below, with a threshold that begins at ten workers rather than twenty and a statutory compensation formula that has no British equivalent.

Every entry above is the name of an event and, where the authority states one, its trigger. None of it tells you what applies to your business, and the differences between these systems are large enough that a rule remembered from one country is actively misleading in another. That is a question for an employment lawyer admitted where your people are employed.

United Kingdom

Definitions from Acas and GOV.UK. This is one of the two systems set out in full, because it is the one most of the vocabulary above is borrowed from. If you are not employing in the United Kingdom, read it as an illustration of how such a system is built and nothing more.

Collective consultation
The set of rules that applies where an employer proposes to make, in GOV.UK's words, "20 or more employees redundant within any 90-day period at a single establishment". Below twenty proposed redundancies, GOV.UK states there are "no set rules to follow", while describing full consultation as good practice. Consultation "does not have to end in agreement, but it must be carried out with a view to reaching it".

Source: GOV.UK, Making staff redundant: redundancy consultations. Checked 18 September 2026.

The 30 and 45 day periods
Where collective consultation applies, GOV.UK states minimum periods before the first dismissal takes effect: 30 days for 20 to 99 proposed redundancies, and 45 days for 100 or more.

Source: GOV.UK, Making staff redundant: redundancy consultations. Checked 18 September 2026.

Establishment
For notification purposes, "the site where an employee is assigned to work". Where an employer operates from more than one site, GOV.UK states that "each one is treated separately for notification and consultation purposes".

Source: GOV.UK, Advance notification of redundancies: HR1 form. Checked 18 September 2026.

A change that is coming to that threshold
The Employment Rights Act 2025 adds a further organisation-wide trigger alongside the existing establishment one, so that redundancies dispersed across several sites of the same employing entity can also require collective consultation. Either trigger would be enough. The threshold number itself had not been set at the time of writing and is to be made by regulations, with the Government consulting on the options. If your redundancies are spread across sites, this is a live question for your employment lawyer rather than a settled rule.

Sources: GOV.UK, RPC opinion: collective redundancy threshold options assessment and Linklaters, Changes to collective redundancy. Checked 18 September 2026.

Form HR1
The advance notification an employer is required by law to make to the Redundancy Payments Service where it proposes to dismiss "20 or more employees as redundant at one establishment within a period of 90 days or less". GOV.UK states it must be submitted before consultation starts, 30 days ahead for 20 to 99 proposed redundancies and 45 days ahead for 100 or more, and that a copy goes to the employee representatives.

Source: GOV.UK, Advance notification of redundancies: HR1 form. Checked 18 September 2026.

Selection criteria
The basis on which people in a pool are chosen. Acas publishes an example weighted scoring framework — work performance scored out of 15, skills and competence out of 15, disciplinary record out of 5, attendance out of 5 — as an illustration rather than a required method. It also states that redundancy "only applies to those with the legal status of employee".

Source: Acas, Managing a redundancy process: select employees. Checked 18 September 2026.

Statutory notice
The minimum notice an employer must give, which GOV.UK sets by length of service: at least a week for one month to two years, a week for every year employed between two and twelve years, and twelve weeks at twelve years or more.

Source: GOV.UK, Making staff redundant: giving staff notice. Checked 18 September 2026.

PILON (payment in lieu of notice)
Ending employment without working the notice period and paying for it instead, where the contract contains a clause allowing it. GOV.UK states such payments must have tax and National Insurance deducted, that the basic pay for the notice period is still owed, and that contractual pension or insurance contributions continue to apply.

Source: GOV.UK, Making staff redundant: giving staff notice. Checked 18 September 2026.

Statutory redundancy pay
The minimum payment for an employee with two years' service or more, calculated by GOV.UK as half a week's pay for each full year under 22, one week for each full year from 22 to 40, and one and a half weeks for each full year at 41 or older, with length of service capped at 20 years. For redundancies on or after 6 April 2026 the weekly pay is capped at £751 and the maximum at £22,530.

Source: GOV.UK, Redundancy: your rights — statutory redundancy pay. Checked 18 September 2026.

Suitable alternative employment
Another role within the organisation or an associated company, judged by GOV.UK on how similar the work is, the terms offered, the person's skills and circumstances, and the pay, status, hours and location. It carries a four-week trial period, extendable for training only if agreed in writing before the trial starts.

Source: GOV.UK, Redundancy: your rights — suitable alternative employment. Checked 18 September 2026.

Settlement agreement
In the Acas statutory Code of Practice, "legally binding contracts which can be used to end the employment relationship on agreed terms", whose main feature is that they waive the individual's right to bring a claim on the matters specifically covered. The Code requires the agreement to be in writing, to relate to a particular complaint or proceedings, and the employee to have taken advice from a relevant independent adviser. It notes that wording such as "full and final settlement of all claims" is not on its own sufficient.

Source: Acas Code of Practice 4: settlement agreements. Checked 18 September 2026.

Protected conversation, and without prejudice
Two different things that get used interchangeably. Acas describes "without prejudice" as a common law principle keeping statements made in a genuine attempt to settle an existing dispute out of evidence, and section 111A of the Employment Rights Act 1996 as offering similar protection for an offer of a settlement agreement, or discussions about one, in a subsequent unfair dismissal claim.

Source: Acas Code of Practice 4: settlement agreements. Checked 18 September 2026.

Spain

Definitions from the consolidated Estatuto de los Trabajadores. Included because a great deal of travel and hospitality employment sits here, because it is where this author lives and works, and because it shows how far two neighbouring systems diverge: the collective threshold begins at ten rather than twenty, and the compensation is a statutory formula rather than a scale.

Despido colectivo (ERE)
Collective dismissal. Article 51.1 sets it by reference to a 90-day period: at least 10 workers in a company of fewer than 100, at least 10 per cent in a company of 100 to 300, or at least 30 in a company of more than 300. It also covers cessation affecting the whole workforce where more than five workers are involved.

Source: BOE, Estatuto de los Trabajadores (Real Decreto Legislativo 2/2015), art. 51.1. Checked 18 September 2026.

Periodo de consultas
The consultation period. Article 51.2 sets a maximum of 30 calendar days for companies of 50 workers or more and 15 days for companies of fewer than 50, with the decision to be communicated within 15 days of the last meeting, and a minimum of 30 days between opening consultation and the dismissals taking effect.

Source: BOE, Estatuto de los Trabajadores, art. 51.2. Checked 18 September 2026.

Despido objetivo
Dismissal on objective grounds. Article 52.c refers to the economic, technical, organisational or production causes described in article 51.1, applied below the collective thresholds.

Source: BOE, Estatuto de los Trabajadores, arts. 51.1 and 52.c. Checked 18 September 2026.

Carta de despido, indemnización and preaviso
Article 53.1 sets the form requirements for an objective dismissal: written communication to the worker stating the cause, compensation of 20 days' salary per year of service pro-rated by month with a maximum of 12 monthly payments, and 15 days' notice.

Source: BOE, Estatuto de los Trabajadores, art. 53.1. Checked 18 September 2026.

Despido improcedente
A dismissal found unfair. Article 56.1 sets compensation at 33 days' salary per year of service, pro-rated by month, with a maximum of 24 monthly payments. This is the figure that makes getting the process right a commercial question as well as a human one.

Source: BOE, Estatuto de los Trabajadores, art. 56.1. Checked 18 September 2026.

ERTE
Temporary suspension of contracts or reduction of hours rather than dismissal, under article 47. Reduction of hours is set between 10 and 70 per cent. The consultation period is 15 days, or a maximum of 7 days in companies with fewer than 50 staff, with the decision communicated within 15 days of the last meeting.

Source: BOE, Estatuto de los Trabajadores, art. 47. Checked 18 September 2026.