Skip to main content
End Of The Road

Redundancy consultation

Excellent 450 reviews on Trustpilot

Are you making essential changes to your business?

We’ll navigate your through the HR redundancy process.

We know that making employees redundant is a difficult but sometimes unavoidable decision.

The redundancy consultation process is a minefield. Breaking the rules can prove to be very expensive. Missing a step altogether can lead to an employee bringing a tribunal case against you for unfair dismissal.

You’ll need to be careful around notice periods, pay entitlements and selection criteria.

You will also have to consider whether you can offer an alternative job. And if not, what support you can put in place to help them find their next role.

We understand that every situation is different. Our local HR professionals can work with your business to design a solution that effectively manages your redundancy process.

Getting redundancies right is crucial

Business postcode

Your enquiry will be sent to your most local office, based on the business post code you enter

Data storage 
Health & Safety

Following a fair and legal redundancy process

The most important part of any company redundancy process is that you end up with the best staff to take your business forward.

And also that any departing staff are treated fairly and leave the company with their dignity intact. To do this it is wise to consider the following:

Prepare your business case for staff redundancy. There are many reasons for restructuring your company. But if it is to save money, itemise the savings you have already made before starting the redundancy process.

Give redundancy advice in good time with all the affected employees (and if there is trade union recognition in place, consult the trade union representatives).

Or if over 20 twenty staff are at risk, consult with their elected representatives/trade union representatives and listen to their ideas and suggestions. The redundancy consultation period depends on the numbers of staff involved.

Make sure all staff are included in the redundancy process, especially those on long-term sickness absence or maternity leave.

Identify a potential selection pool. Then ensure your selection criteria is fair, and score each person as objectively as you can.

Follow the statutory dismissal process properly.

Talk to us if you are unsure – one call can help.

Once the redundancy consultation process is over, keep remaining staff motivated by informing them that you intend to keep them in your employment.

Every business situation is different. You really need objective, business focused advice to help navigate the rules of the redundancy process correctly.

Contact us for more information today.

Up next read more about dismissals.

Redundancy Consultation FAQ

When faced with making redundancies, it is crucially important that employers carry out these procedures fairly to make sure no claims are brought against them.

To do this, employers will usually form a number of selection pools that will help them to identify employees at risk of redundancy. While employers have a lot of freedom in choosing these pools, they need to be considered fair and reasonable.

When determining selection pools, employers should consider the extent to which employees are doing similar work, the extent to which employees’ jobs are interchangeable, and what type of work is ceasing or diminishing.

Employers can then use selection criteria to choose which employees to make redundant from these pools. This is usually based on factors such as performance, length of service and attendance and disciplinary records.

Employers cannot use selection criteria for redundancy based on an employee’s age, race, religion, disability or whether they are pregnant. This is illegal and would automatically be considered as unfair dismissal.

As an employer you must explain the business case and how the proposals could affect the individual employee’s role and what options are available to them.

You should let them know how the redundancy process will work, when the consultation period will end and when the proposed changes will likely affect their role. It is also important to let your employee know what support is available to them, such as help with their CV, training and financial advice.

This is also a chance for employees to ask questions and raise objections. Employees will likely want to know how selection pools have been identified, whether they have been fairly selected and whether their employer has considered alternatives to redundancy. It is your duty as an employer to address those questions and concerns.

Preparation and planning are key to the consultation process. You will need to be able to explain in depth the business case for making redundancies and be able to answer important questions such as why? why now? what is the business hoping to achieve by making redundancies and what alternatives have been considered?

You will also need to know how you will decide the criteria for selecting employees for redundancy, how long the decision will take, and have a clear idea of the kinds of skills and experience your business needs for the future.

This is the steps that the company will need to take during the process. It will vary for each company depending on the number of employees at risk and the reasons for the proposal.

While there is no time limit for the redundancy consultation to take place, there are legal requirements with regard to the minimum time allowed between when the process begins and when the first dismissal takes place. If you are making between 20 and 99 redundancies, the consultation needs to begin at least 30 days before the first dismissal takes place. If you are making more than 100 redundancies, the consultation must begin 45 days before any dismissals take effect. There is no minimum consultation period for businesses making fewer than 20 redundancies.

Consider the logistics of the redundancy consultation if staff are working remotely. For example, is adequate support available to protect their well-being?

Start consulting in good time with all the affected employees (and if there is trade union recognition in place, consult the trade union representatives) If over 20 twenty staff are at risk, consult with their elected representatives/trade union representatives and listen to their ideas and suggestions. AN HR 1 form must be completed as well.

Always remember it is the job that is being made redundant not the person but for the individual it is their livelihood. So give as much information as you can and listen to their concerns.

Our outplacement package can help employers to support those that they are making redundant by offering crucial advice with their next career move. This can be invaluable given the current climate and includes services such as interview skills, CV screening and career coaching.

Once the redundancy consultation process is over, keep remaining staff motivated by informing them that you intend to keep them in your employment. Team building activities can help to avoid survivor guilt amongst those who are still working for your business.

Every business situation is different. You really need objective, business focused advice to help navigate the rules of the redundancy process correctly.

Contact your local HR experts