Redundancy Management
Managing redundancies is one of the most challenging situations any employer faces. We provide step-by-step guidance through every stage of the redundancy process, from initial planning and consultation through to final dismissals, ensuring full legal compliance and minimising the risk of unfair dismissal claims.
Structured, Legally Compliant Redundancy Process
Whether you are making a single role redundant or managing a collective redundancy affecting 20 or more employees, we provide comprehensive support at every stage. Our approach ensures you meet your legal obligations while treating affected employees fairly and with dignity.
Selection Criteria
We help you establish a fair, objective, and non-discriminatory selection criteria matrix. Typical criteria include skills and qualifications, performance records, attendance history, and length of service. Each criterion is weighted and scored transparently, creating a defensible record that demonstrates fairness if challenged at tribunal.
Consultation Process
Individual consultation is required in all redundancy situations. For collective redundancies (20 or more employees at one establishment within a 90-day period), Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 imposes additional duties. We manage the entire consultation process, draft all letters, and attend meetings with you to ensure compliance.
Redundancy Calculations
We calculate statutory redundancy pay entitlements for each affected employee based on their age, length of continuous service, and weekly pay (subject to the current statutory cap). Where you offer enhanced redundancy terms, we advise on the structure and tax implications to ensure payments are made correctly and cost-effectively.
Documentation
We prepare all documentation required throughout the process, including at-risk letters, individual consultation invitation letters, meeting notes, scoring matrices, outcome letters, notice of dismissal letters, and right of appeal notifications. Every document is drafted to withstand legal scrutiny and forms a complete audit trail of the process followed.
Alternative Employment
Employers have a duty to consider suitable alternative employment for employees at risk of redundancy. We help you identify potential vacancies across the organisation and manage the trial period process. Offering suitable alternative employment is a key factor tribunals consider when assessing whether a redundancy dismissal was fair.
Fair Process Protects Your Business
A redundancy dismissal is only fair if the employer can demonstrate a genuine redundancy situation, a fair selection process, meaningful individual consultation, and reasonable efforts to find alternative employment. Tribunals scrutinise each of these elements closely, and a failure at any stage can render the dismissal unfair, regardless of how genuine the underlying business need.
For collective redundancies, the consequences of non-compliance are even more severe. Failure to collectively consult can result in a protective award of up to 90 days' gross pay per affected employee, and employers must also notify the Redundancy Payments Service (formerly the Insolvency Service) using an HR1 form at least 30 or 45 days before the first dismissal takes effect.
- Defend against unfair dismissal claims with a robust, documented process
- Avoid protective awards of up to 90 days' pay for collective consultation failures
- Ensure selection criteria are objective and non-discriminatory
- Maintain team morale and retention of remaining staff through a respectful process
Common Questions
When is a redundancy genuinely fair?
A redundancy is genuine when the employer's requirement for employees to carry out work of a particular kind has ceased or diminished, or is expected to do so. This can arise from business closure, workplace closure, or a reduced need for employees to carry out work of a particular kind. The redundancy must not be a pretext for dismissing an individual for other reasons, and the employer must follow a fair procedure.
What is the difference between statutory and enhanced redundancy pay?
Statutory redundancy pay is the legal minimum an employer must pay to employees with two or more years' continuous service. It is calculated at half a week's pay for each full year of service under 22, one week's pay for each year between 22 and 40, and one and a half weeks' pay for each year aged 41 or over, subject to a weekly pay cap and a maximum of 20 years' service. Enhanced redundancy pay is any amount an employer chooses to pay above the statutory minimum, often as part of an enhanced redundancy package.
How long are the mandatory consultation periods?
For collective redundancies of 20 or more employees at one establishment within 90 days, consultation must begin at least 30 days before the first dismissal takes effect. If 100 or more employees are being made redundant, consultation must begin at least 45 days before. For individual redundancies (fewer than 20), there is no fixed minimum period, but the consultation must be meaningful and genuine, allowing a reasonable time for employees to respond and for alternatives to be explored.
How can I ensure the selection process is fair?
A fair selection process requires identifying the correct selection pool (the group of employees doing the same or similar work), applying objective and measurable selection criteria, scoring each employee consistently, and ensuring no criterion directly or indirectly discriminates against employees with protected characteristics. We recommend using a scoring matrix with weighted criteria and having the scoring moderated by more than one manager to reduce the risk of bias.
Can employees appeal against redundancy?
Yes. Whilst there is no statutory right of appeal against redundancy, offering a right of appeal is considered best practice and is a factor the tribunal will take into account when assessing the overall fairness of the process. The appeal should be heard by a more senior manager who was not involved in the original decision. Failing to offer an appeal can significantly weaken your position if the dismissal is challenged.
Manage Redundancy Properly
Get expert redundancy guidance that protects your business. Our employment law specialists will manage the entire process, from planning through to final dismissals, ensuring full legal compliance at every stage.