Redundancy

1. Establish a Clear Business Case

Explain and document why redundancies are necessary. This should be based on solid evidence — such as financial pressures, loss of contracts, or business restructuring — and not on personal issues with employees.

• A well-prepared business case provides clarity for decision-making and is essential evidence if challenged at tribunal.
• Share as much information as you reasonably can with staff — transparency reduces suspicion and improves trust.

2. Consultation Process

Consultation is a legal requirement and must be meaningful.

• Individual consultation – Every affected employee should have the chance to discuss their situation, ask questions, and suggest alternatives.
• Collective consultation – If 20 or more redundancies are proposed within 90 days, employers must consult representatives or unions.
• The consultation period should be genuine: don’t present redundancies as a “done deal.” Consider alternatives and listen to feedback.
• Sensitive handling is key — employees should feel heard, respected, and supported.

3. Selection Criteria

Redundancy selection must be fair, transparent, and objective.

• Use criteria such as skills, performance, and experience.
• Avoid discriminatory measures — do not select based on age, gender, disability, pregnancy, or other protected characteristics.
• Apply criteria consistently and document the process to show fairness.

4. Explore Alternatives to Redundancy

Before confirming redundancies, employers should demonstrate they considered other options:

• Redeploying staff into suitable alternative roles.
• Offering reduced hours or flexible working.
• Considering voluntary redundancy schemes.
• Retraining or upskilling employees for other areas of the business.

This not only reduces risk but also shows that you value employees and are doing everything possible to avoid compulsory job losses.

5. Notice and Redundancy Pay

• Employees must receive their statutory or contractual notice period.
• Employees with at least two years’ continuous service are entitled to statutory redundancy pay, calculated based on age, service, and capped weekly pay.
• Some employers offer enhanced redundancy packages as part of good practice or company policy.

6. Change Management and Sensitive Handling

Redundancy is a significant change for both affected employees and the wider team. Applying change management principles can help:

• Communicate clearly – Avoid jargon and keep messages consistent.
• Acknowledge emotions – Recognise that staff may feel shock, anger, or fear.
• Support managers – Train them to deliver difficult messages with empathy and to support their teams effectively.
• Plan for the “survivor effect” – Remaining employees may feel guilty, anxious, or uncertain. Provide reassurance and support to keep morale stable.

7. Outplacement Support

Offering outplacement support is best practice and demonstrates commitment to employees’ futures. This might include:

• Career coaching and CV workshops.
• Interview preparation and job search support.
• Networking opportunities and introductions to recruitment partners.
• Emotional support such as access to counselling or Employee Assistance Programmes (EAPs).

Providing outplacement services helps employees transition into new roles more smoothly and shows that your business is socially responsible.