A colleague's birthday provides a welcome distraction for the employees of Wernham Hogg and leads to a series of practical jokes at the expense of David and Gareth. Meanwhile, David's growing frustrations with new boss Neil constantly looking over his shoulder are somewhat alleviated by the arrival of two representatives from a public speaking company who seem keen to recruit him.

It's Comic Relief Day and the staff of Werhnam Hogg all do their bit to raise money including Dawn, whose 'kisses for 1' stand finally provides Tim with the opportunity he's been waiting for. But when David can only produce a draft of his new gameshow concept in place of an important company report, Neil and Jennifer draw the line and inform him that he is being made redundant.

Wernham Hogg, Slough branch are having a training day. Rowan, an outside consultant tries his best. Dawn has other things on her mind...

Although slightly peeved that the staff seem to be taking his redundancy in their stride, David's spirits remain high as he plans his future while also being interviewed for an article in 'Inside Paper'. Tim takes drastic action when he learns that Dawn has resigned in order to move to the USA with boyfriend Lee. However, when David is told that his services as a motivational speaker are also no longer required he sinks to his lowest ebb and begs Neil to reconsider the dismissal. But is it too late?

David's preparations for his first motivational training seminar that evening don't get off to the perfect start when he first discovers the staff's new nicknames for him that are doing the rounds and then receives another reprimand from Neil for neglecting his duties. Meanwhile, Tim and Rachel finally go public with their relationship, much to the dismay of Gareth.

Jennifer arrives to give the final decision. The Slough branch is to be merged with Swindon and some people will lose their jobs, and David has been offered Jennifer's job, which he accepts.

David Brent, manager of the Slough branch of Wernham Hogg paper merchants, is told that it might be closed down. He makes the rash promise of No Redundancies...

A new girl arrives on work experience. The day is brightened up even more by a doctored picture of David Brent that's been e-mailed around the office. Cue Gareth Keenan Special Investigator...

Brent decides to take on a new secretary despite the spectre of redundancies in the Slough branch. He can choose between some bloke that's turned up for interview and a pretty young blonde. The day is rounded off with a trip to Chasers nightclub...

As David conducts the annual staff appraisals he discovers that the group from Swindon are less than impressed with their new boss and a lunchtime trip to the pub does little to improve the situation. The same cannot be said for Tim however, who is getting on particularly well with new girl Rachel.

Tim is 30 today and receives some special gifts. Dawn wants to organize after-work drinks for him but it's also the annual quiz night. Brent & Finchy see it as a point of honour that they win. The only real competition comes from Tim & Ricky...

As a result of the Swindon merger, a group of new staff arrive at Slough branch and David wastes no time in familiarising them with his unique style of management. Meanwhile, Tim seems to be taking his promotion very seriously.