Redundancy Factsheet (Employers)

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Introduction

Redundancy is a type of dismissal that occurs when a role within an organisation is no longer needed or can no longer be funded.

Facing redundancy is one of the most difficult situations that an employee can face during their working life causing uncertainty, worry and stress. Therefore, it is vital that all redundancies are handled carefully and sensitively.

It can also be a challenging and stressful time for the employer who must make tough decisions about the future of their organisation and workforce.

Being aware of employer responsibilities around redundancies, including the relevant employment law in this area, can ensure that the process runs smoothly and can help to reduce anxiety at this worrying time. Good communication between employer and employees is key, and this includes a meaningful consultation period before final decisions are reached.

The information contained within this factsheet will help employers to:

Follow a fair and timely procedure
Consult with employees appropriately
Ensure that employees are fully supported throughout the redundancy process

When does a redundancy situation arise?
Redundancy Process and Procedure
Planning
Attempting to avoid redundancies
Identifying the pool for selection
Selection criteria for redundancy
Voluntary redundancies
Consulting with employees about redundancy
When is collective consultation necessary?
Notification to the Dept for Business, Innovation and Skills
Individual consultation
Suitable alternative jobs
Redundancy dismissals
Period of notice
Appeals
Redundancy Payment
Time off to seek employment or training
Redundancy protection for pregnancy and new parents
Support for employees
Redundancy Checklist

1. When does a redundancy situation arise?

Employers should be aware that redundancy only occurs in three very narrowly defined circumstances.

Redundancy arises when there has been, or is going to be, either:

The closure of the business
The closure or relocation of the workplace or site
A reduction or cessation of work, meaning that the type or number of roles needed to carry out certain work is changing

One of these three situations will need to occur for the redundancy be a genuine one. The employer must be able to demonstrate that the employee’s role will no longer exist.

For some smaller employers who are dependent on funding, they may still be a need for the role and the work, but they can no longer afford the salary for the post. This would still come under point (3) above.

Other reasons why redundancies may happen is because:

An organisation is facing bankruptcy, insolvency or a need to close entirely
New technology makes a job role unnecessary
New processes have been introduced
There is a decreased demand for services or products
A business needs to relocate to a different location
A restructure is necessary to improve efficiency or adapt to changing market conditions

Redundancy should not be used as a reason for dismissal in cases where an employer has concerns about poor performance or conduct. Instead the organisation’s disciplinary or capability procedures should be followed.

2. Redundancy process and procedure

Many organisations choose to establish a formal redundancy policy and process. This can be useful but it is not mandatory. If the employer does have a procedure in place, then it’s important to ensure it is carefully followed.

If there is no redundancy policy in place, then it can still be useful to be clear on the process that will need to be followed in the case of potential redundancies.

The exact redundancy process will usually vary according to the timescale and size of the redundancy. However, the following stages should be considered in most cases:

Planning
Attempting to avoid redundancies
Identifying the pool of people for selection (where needed)
Asking people to come forward for voluntary redundancy (where appropriate) to avoid compulsory redundancies
Consultation – both collective (in large scale redundancies of 20 employees or more) and individual consultation in all cases
Notification to the Department for Business, Innovation and Skills (in cases where collective redundancy is required)
Use of objective selection criteria
Advance notice of individual consultation meeting
Permitting a colleague/union representative to be present at consultation meetings
Considering suitable alternative roles
Ensuring that all alternatives to redundancy have been explored
Giving notice of redundancy
Giving the employee the opportunity to appeal
Statutory or other redundancy payment
Helping redundant employees obtain training or alternative work

Please see the sections below for further details on each of these areas.

3. Planning

At the early stages of considering redundancies the employer should make a redundancy plan and share this with all staff. This can help the employer to follow a fair process and avoid the risk of legal claims.

The redundancy plan should include:

Options for reducing redundancies or avoiding them altogether
The number of redundancies you are considering
How you will keep staff informed and supported throughout the process
Details for consulting all employees affected, including those off work, for example on maternity or sick leave
Timeframes
Fair selection criteria and how these will be agreed
Information regarding redundancy pay and notice periods and whether these will be statutory or contractual
The appeals process for employees who think the redundancy process or their selection has been unfair

If the organisation has managers, they will need to ensure that:

Communication with managers is carefully considered so that they are kept fully informed
The managers fully understand the redundancy plan and are clear on the steps in the process
Training is provided for manages where needed so that they are confident in carrying out any duties relating to the redundancies

By involving managers from the start and keeping them updated throughout, they'll be able to play an important role in the redundancy procedure by effectively talking with staff, participating in the consultation process and providing employee support.

It is important to be understanding of how the redundancy news may affect staff. During the planning stages employers should also start to consider how they can support employees through this difficult and uncertain time, for example, offering support from any line managers, signposting staff to any wellbeing resources and help available etc. Please see Section 19 for other ways that employers can support staff.

4. Attempting to avoid redundancies

Before starting the redundancy process it is important to consider ways in which the redundancies can be reduced or avoided. Other options to consider may include:

Changing working hours or allowing staff to work more flexibly such as reduction in hours, job shares, homeworking
Redeployment, which means moving employees into different areas of the organisation
Letting go of temporary or contract workers
Recruitment freezes
Limiting or stopping overtime
Pay freezes
Offering sabbaticals and secondments

Obviously, these suggestions will not apply to every organisation or redundancy situation. What is most important is that redundancy is a last resort after all other options have been exhausted.

If the decision to make redundancies is ever challenged, then employers may need to show evidence that alternatives were carefully considered beforehand. Therefore, it is It is important to keep a record of all meetings where options to avoid redundancies were discussed so that evidence can be provided if required.

It is important to remember that the employer will need to agree any changes to terms and conditions with the employee. Where any of the options above is a change to the employment contract, then the employer must consult with the employee and get their agreement before proceeding.

It might not always be possible to avoid redundancies. However, it can give employers a better understand of how to plan for the future.

5. Identifying the pool for selection

The group from which employees will be selected for redundancy is known as the selection pool. Employers need to be aware that making redundancies without identifying the pool correctly could make the dismissals unfair.

The selection pool will usually consist of those employees:

Who undertake a similar type of work
Who work in a particular department
Who work at a relevant location, or
Whose work has ceased or diminished or is expected to do so

In some redundancies, a range of different selection pools may be identified depending on the specific circumstances.

6. Selection criteria for redundancy

In some cases the whole selection pool may be facing redundancy. However, where it is necessary to choose candidates for redundancy from the selection pool the decision must be based on objective selection criteria.

Using consistent and measurable selection criteria will ensure that fair decisions are made and a balanced workforce is retained who are best able to meet the organisation’s current and future needs.

The selection criteria must be capable of being:

Precisely described
Objectively assessed
Applied fairly and consistently

The criteria may include:

Attendance records
Disciplinary records
Skills and qualifications
Experience
Performance

Employers should be careful when choosing and applying selection methods to ensure they are not discriminatory. Selection decisions will not be made, (directly or indirectly) on the basis of gender, race, ethnic origin, sexual orientation, religion, disability, age, gender reassignment, marital status, or trade union activities.

It is automatically unfair to select employees for redundancy for a number of reasons, including:

Trade union membership (or non-membership)
Part-time status
Pregnancy or maternity-related reasons

‘Last In, First Out’ (LIFO) used to be a popular method of selection. However, it is now considered unsatisfactory for age discrimination reasons. This is because those with a shorter length of service are more likely to be younger. It can still be used as a selection method but only alongside a range of other selection criteria, and the employer should be able to justify its use.

Selection from the pool using the criteria must be done by a fair and objective process. Often employers will use a scoring matrix to assess employees. Typically this is a chart listing the selection criteria and the weighting given to each. The employee scores can then be listed on the chart and totals calculated.

A matrix provides transparency, consistency, and a clear record of how the scores were determined. This helps employers to demonstrate that the decisions made were based on measurable factors rather than bias.

Where a scoring matrix is used the organisation should ensure that employees are aware of the scoring system from an early stage of the redundancy process.

Where possible two managers should carry out the scoring independently and then add their scores together. The managers on the scoring panel must be of appropriate seniority and have a good knowledge of the employees being assessed.

The assessment by the scoring panel must always be in writing and supported with evidence where possible (e.g. attendance records, performance records etc). The panel members must be able to justify their decisions and scores if there is an internal appeal.

7. Voluntary redundancies

Once an employer has carried out careful planning and identified that redundancies do need to take place, then they may decide to offer a voluntary redundancy package and invite volunteers to come forward. This may reduce employee numbers down to the required levels and avoid compulsory redundancies having to take place.

Voluntary redundancies will not apply to all redundancy situations but should be considered as an option where possible.

Even when the employer is not asking for volunteers, employees may still put themselves forward and offer to be made redundant. In this case employers should ask for this to be confirmed in writing.

The employer is not obliged to accept any applications for voluntary redundancy and does not have to offer voluntary redundancy to everyone.

However, where an offer to be made redundant is accepted, then it is important to note that a voluntary redundancy is not a resignation. Employees who have volunteered for redundancy are in the same legal position as those facing compulsory redundancies and are still entitled to a statutory redundancy payment.

It is still advisable to carry out individual consultation with volunteers so that they are aware of the terms and they understand their rights in relation to notice and pay etc. (See section 11 below).

It is important to ensure compliance with collective consultation obligations even when voluntary redundancies are involved. (See section 9 below).

8. Consulting with employees about redundancy

ACAS explains that:
“Consultation is when you talk with and listen to affected employees.”

“Consultation means discussing and seeking agreement with employees on ways to avoid or reduce redundancies, and ways to reduce the impact of redundancy on affected employees.”

“The purpose of consultation is to provide as early an opportunity as practicable for all concerned to share the problem and explore the options.”

The law requires the consultation to be meaningful – it is not enough to just inform employees. It should be a two-way process between employer and employee.

There are two types of consultation:

Individual
Collective

It is important for employers to understand the difference between the two types of consultation, and their obligations in relation to both.

Please note – At this point in the process there are some differences between the requirements for small and larger scale redundancies. Employers that are making 20 or more people redundant need to take some additional steps.
To ensure this is clear, the action required for larger scale redundancies will be highlighted in red below. Unless it is states otherwise below, all other steps apply to all employers, regardless of the size of the organisation or the number of redundancies being made.

9. When is collective consultation necessary?

Employers should consult individually with employees in all cases.

However, if you're proposing to make 20 or more redundancies at one establishment in a 90-day period, you must also hold 'collective consultation'.
A single establishment could be either an entire organisation, or a 'distinct entity' within an organisation.

Collective consultation is where the employer consults on their redundancy proposals with any recognised trade union. If there isn’t a recognised trade union then employee representatives can speak on behalf of the employees they represent. There may be existing employee representatives who are able to represent staff in redundancy situations. However, if there are no representatives currently in place then there will need to be a fair election process.

Collective consultations must start at least:

45 days before the proposed date of any redundancies for 100 or more employees
30 days before the proposed date of any redundancies for 20-99 employees

There are no rules for how long collective consultation must last, but it needs to be completed before notice of dismissal is given to any of the employees. It may take longer than 30 or 45 days in some cases but could also finish sooner if you reach an agreement. However, if consultation finishes sooner you cannot make anyone redundant before the end of the 30 or 45 days.

You do not need to reach an agreement to end the consultation. You just need to show that the consultation was genuine, and you tried to reach an agreement.

At the start of the consultation process the employer is legally obliged to give the following information to the trade union or representatives:

The reason for the redundancies
The number of proposed redundancies and their job types
The number and descriptions of employees affected
The proposed methods of selection
The procedure to be followed in dealing with the redundancies
The method of calculating redundancy payment

The collective consultation should include:

Ways of avoiding the dismissals
Reducing the number of employees to be dismissed
Mitigating the effects of dismissals, and
The reasons for dismissal

Please note: On implementation of the Employment Rights Bill several collective‑redundancy reforms are scheduled to come into effect including:

Expanded trigger for collective consultation – consultation may be required where redundancies meet the threshold across multiple sites rather than only counting employees at a single site
Flexible representative arrangements – employers may negotiate varied consultation arrangements or agreements with different groups of affected employees to accommodate different business contexts
Higher protective award for failure to consult – the maximum protective award for breaching collective consultation rules doubles from 90 days’ pay to 180 days’ pay
Focus on stronger remedies and processes – greater emphasis on meaningful early engagement and negotiation with employee representatives to avoid larger liabilities

The implementation of the Employment Rights Bill will be staged, with major changes expected in April 2026 and further measures later in 2026–2027.

10. Notification to the Dept for Business, Innovation and Skills

Employers who are obliged to collectively consult must send form HR1 to the Department for Business, Innovation and Skills of the proposed redundancies. This will only apply in situations where 20 employees or more are facing redundancy.

11. Individual consultation

In all cases employers are required to consult individual employees.

A Tribunal may find it unfair if an employer consults just with unions and not with individual employees. Therefore, employers making 20 or more employees redundant need to conduct both collective and individual consultation.

In situations where the proposed redundancies involve fewer than 20 employees the employer is only required to carry out individual consultation. However, some employers may still choose to also consult collectively with the employees as a group.

The employer should arrange for consultation to start as early as possible, ideally when the redundancy proposals are in their formative stage. The employer must ensure that individuals have sufficient time to consider the proposals. Employees should also be actively encouraged to put forward their own suggestions, arguments and ideas, and the employer should consider these and provide a response.

The law does not provide definitive time scales for individual consultation but requires reasonable consultation in the circumstances. A minimum of four weeks is suggested to allow a meaningful consultation to take place. Where necessary time scales may need to be extended in situations where proposals are still being considered and alternatives to redundancy explored.

The following steps are important during individual consultation:

Individual employees should be informed in writing that they are ‘at risk’ of redundancy
A group meeting/presentation may take place with all those employees facing redundancy to explain the reason for the potential redundancies, and how many jobs are at risk
This will then be followed by an individual meeting to consult with the employee and discuss the potential redundancy. This will form the first part of the consultation.
By law employers should meet with ‘at risk’ employees at least one more time during the consultation process
Employers must be able to demonstrate that the employee has been invited to a meeting and had an opportunity to discuss in the meeting (1) the reasons for the redundancy,(2) the procedure that will be followed, (3) the pool for selection, (4) the selection criteria, (5) any alternative employment and (6) how the redundancy payment will be calculated
However, it is advisable to meet employees on a regular basis (once a week if possible) to ensure that they are kept well informed of developments
The actual number of meetings will depend on what the employee has to say. The employee should be encouraged to submit ideas and proposals for avoiding redundancy. The employer must be seen to consider any arguments or suggestions that the employee puts forward.
Employees should be informed of any redeployment procedure and options available
It is advisable that the discussions and outcomes of the meetings are documented
Employers should allow the employee to bring a trade union representative or work colleague to the consultation meetings in the usual way

12. Suitable alternative jobs

For a dismissal to be fair, an employer must offer any suitable alternative job to the employee to avoid their redundancy. This alternative work could be with the employer’s own organisation or with an associated company.

Whether a position is suitable depends on:

The terms of the job being offered
The employee’s skills, abilities and circumstances
The pay (including benefits), status, hours and location of the job

If an employee unreasonably refuses a suitable alternative, then they forfeit their right to a statutory redundancy payment.

An employee is entitled to a four-week trial period in a new role. If the employer and employee then agree that the role is not a suitable alternative, the employee reverts to being redundant.

There is redundancy protection during pregnancy and for new parents.
This means that any suitable alternative vacancies must be offered to employees who have this redundancy protection. Please see Section 18 for further information.

13. Redundancy dismissals

At the end of the individual consultation period the employer will need to reach a decision on whether or not the employee is to be made redundant.

Redundancy should be the last resort after all other alternatives have been explored.

If the employee is to be made redundant, then they must be informed in writing and be given an explanation of the redundancy payment that they will receive. They should also be informed of their right to appeal. Please see Section 15.

14. Period of notice

An employee is entitled to a period of notice as well as a redundancy payment.

An employee must therefore be given either statutory minimum notice or the notice set out in their contract, whichever is the greater.

If there is no written contract in existence, then employees should be given the statutory minimum legal notice which is:

One week's notice if the employee has been employed by the employer continuously for one month or more, but for less than two years
Two weeks' notice if the employee has been employed by the employer continuously for two years, and one additional week's notice for each further complete year of continuous employment, up to a maximum of 12 weeks

15. Appeals

An employee should be allowed to appeal against the decision to make them redundant. It is advisable to inform employees of their right to appeal in writing. Please see Section 13.

If an appeal is received the employer should follow their appeals process and ensure that a meeting is arranged as soon as possible. The employee is entitled to be accompanied at the meeting by a colleague or trade union representative.

The employee will be given chance to explain their reasons for thinking the redundancy process or selection methods for redundancy were unfair.

If the employer accepts the appeal the employee can be offered their job back.

If the employee has already finished their notice period they can be put back on their previous contract and maintain their length of service. The employee would need to be paid for the time they were not at work. However, any redundancy pay would need to be returned.

If the appeal is rejected, then redundancy notice and pay should continue as planned.

16. Redundancy Payment

An employee being made redundant with two or more years' continuous service has the right to receive:

A statutory redundancy payment
A written statement setting out the payment amount and calculation

The payment due to each employee under the statutory redundancy payment scheme is based on:

The employee's age
The employee's amount of continuous service, subject to the minimum of two years and a maximum of 20 years
The employee's weekly gross pay
(This is capped at a maximum weekly amount which can be found at Making staff redundant: Redundancy pay – GOV.UK)

The employee will receive:

0.5 week’s pay for each full year of service where their age was between 17 and 22
1 week’s pay for each full year of service where their age was 22 or above, but under 41
1.5 week’s pay for each full year of service where their age was 41 or above

Weekly pay should also include any 'guaranteed overtime' agreed in the contract, or any bonuses or commission. If the weekly pay varies, the redundancy pay should be based on the average hourly rate over a 12-week period.

Some employers may choose to:

Enhance the statutory redundancy payment and pay more than the level set by law
Have a qualifying period of less than two years

However, this is not compulsory and will depend on the circumstances of each organisation.

Employees may not be eligible for statutory redundancy pay if the employer offers them a suitable alternative job and they turn it down. Please see Section 12 regarding suitable alternative employment.

Employees should be informed of the date they will receive their redundancy pay. This may be when employment ends or on the final pay date. A different date can be agreed in writing.

17. Time off to seek employment or training

An employee who is under notice of dismissal by reason of redundancy is entitled to take reasonable paid time off during their normal working hours to seek alternative employment or make arrangements for training necessary for future employment. To qualify for this entitlement the employee must have two years continuous employment at the date on which the notice period expires.

Employers only need to pay 40% of a week’s pay during time off to look for work or training unless the employment contract states otherwise. Many employers will choose to pay more during this time but should ensure they are consistent in their approach to all employees.

Please also see Section 19 regarding support for employees.

18. Redundancy protection for pregnancy and new parents

The law provides redundancy protection for any employee who is:

Pregnant
Taking maternity leave
Taking adoption leave
Taking shared parental leave
Taking neonatal care leave

The law does not apply to paternity leave.

This means that, if there are any suitable alternative vacancies, an employer must offer them to employees who has this redundancy protection. Redundancy protection gives these employees priority over other employees, even if other employees are also suitable.

It is important to ensure that the law around redundancy protection is carefully followed as the risks of not complying include automatically unfair dismissal, or pregnancy and maternity discrimination.

There may be situations where there are not enough suitable vacancies for everyone who has redundancy protection, and the employer will have to decide who is most suitable for the roles they have by assessing factors such as an employee's skills, job knowledge and experience. The criteria used to make the decision should be put in writing either by letter or email. If a protected employee is not offered the suitable vacancy, then a meeting should take place to explain the decision.

The redundancy protected period is the length of time an employee has redundancy protection. This will depend on the situation or type of leave the employee is taking as follows:

Pregnancy and maternity leave From 6 April 2024 the redundancy protected period was extended for pregnant employees and those on maternity leave. Previously the protection only applied while the employee was on maternity leave and not during pregnancy. The redundancy protected period now starts when an employee tells their employer that they are pregnant and ends 18 months from the exact date the baby is born.

If there's a miscarriage The redundancy protected period starts when an employee tells their employer that they are pregnant. If an employee has a miscarriage within the first 24 weeks of pregnancy, the redundancy protected period ends 2 weeks from the end of the pregnancy.

If there’s a stillbirth The redundancy protected period starts when an employee tells their employer that they are pregnant. If a child is stillborn after 24 weeks of pregnancy, the redundancy protected period ends 18 months from the date of the birth.

Adoption leave From 6 April 2024 the redundancy protected period was extended for employees who are adopting. The redundancy protected period now starts on the day someone's adoption leave begins and it ends 18 months from either:

The date the adoption placement starts
Or, in the case of overseas adoption
The date the child enters England, Scotland or Wales

Shared parental leave From 6 April 2024 the redundancy protected period was extended for employees taking shared parental leave. Before this employees were only protected while on shared parental leave. The redundancy protected period now starts on the day a period of shared parental leave begins and if an employee takes:

Less than 6 weeks leave – the protected period still ends on the last day of the block of leave
6 weeks or more of continuous leave – the protected period now ends 18 months from the date of the child's birth

Neonatal care leave Employees taking neonatal care leave are also protected from redundancy. If the employee has taken 6 consecutive weeks of neonatal leave they will have additional protection from redundancy.
This redundancy protected period is for:

18 months from birth for birth parents and intended parents in a surrogacy
18 months from the day the child is placed for adoption
18 months from the day the child enters Great Britain for overseas adoptions

19. Support for employees

Redundancy can be stressful and challenging for the employees who are directly affected, but it can also be an unsettling time for the entire workforce. Announcement of redundancies will invariably have an adverse impact on morale, motivation and productivity.

The negative effects of going through a redundancy process can be reduced to some extent by the sensitive handling of the situation. Managers should be trained to handle redundancies with sympathy and clarity.

Employers should also consider ways in which they can offer support to staff who are facing redundancy.

Employees may need help with carrying out a successful job search. For example, employees could require assistance in refreshing their interview skills, up-dating CVs and responding effectively to job advertisements. Employers should consider whether this could be carried out in-house by a suitably trained employee, or whether staff can be referred to external support services offered locally.
For example, employees can get help from the Jobcentre Plus Rapid Response Service
Redundancy: your rights: Get help finding a new job – GOV.UK
The service provides support with job-hunting, benefits, accessing training and organising work trials for those who are eligible.
Employees may also be able to get help with costs, such as travel expenses, childcare, tools or equipment and vocational training. Employees can get in touch if they suspect they are going to be made redundant, during their notice period and for up to 13 weeks after they have been made redundant
Employers may also choose to contact their local job centre to enquire about the services they can provide for organisations and small businesses in redundancy situations.
It can be a good idea to put together employee information packs that include sources of support and job-seeking tips, or to point employees in the direction of useful on-line resources.
Where available employees should be given access to occupational health, employee assistance programmes and mental health first-aiders if required

Employers should remember that eligible employees are entitled to time off to look for work or training during their notice period. Please see Section 17.

Employers should be mindful that there are certain categories of employees who are more likely to require assistance, for example:

Long-serving employees who have been out of the job market for an extended period and may also be experiencing a greater emotional impact
Employees with less experience of the world of work, and may need additional help with their job search, especially apprentices, graduates, and school leavers
Employees with a particular specialism who may find re-employment more challenging

Employers will always need to prioritise those employees who are losing their jobs and ensure that that they are treated fairly and respectfully. However, those employees who have survived the redundancy situation should not be forgotten.

The organisation’s future is largely dependent on the effectiveness of those employees who remain behind after the redundancy process is complete. The CIPD points out that a demoralised workforce, anxious about job security and critical of the handling of the redundancies of colleagues, is not likely to display commitment, enthusiasm and initiative.

Therefore the key aims and objectives for the organisation should be to:

Give all the workforce a full explanation of the redundancy situation
Demonstrate the necessity for change
Be honest about future employment prospects and clearly explain any changes to working arrangements
Handle redundancies in a responsible and fair way
Have a positive attitude about the future and demonstrate to surviving employees the value of their role in that future
Conduct individual discussions with remaining employees to reassure them of their importance and employment prospects
Ensure that managers have the required skills and attitude to operate effectively during periods of traumatic change and, where necessary, provide training

20. Redundancy Checklist

Stage 1 – Preparation

Determine whether there is a genuine redundancy situation. Does it fall into one of the categories listed in Section 1 above?
If you have an internal redundancy policy, then this is the time to review it
If not, then double check legal requirements to ensure you are complying with the law
Consider how you will support employees during this time – both those directly affected and also the workforce as a whole. Please see Section 19 above for suggestions.

Stage 2 – Alternatives to Redundancy

Communicate in the early stages with employees, and other stakeholders, about the possibility of redundancies
Consider alternatives to redundancy as set out in Section 4 above
Ensure managers are kept up-dated and meet with them to determine the most appropriate measures

Stage 3 – Define the Scope of Redundancies and Selection Criteria

Start to identify which and how many roles may be redundant
Think about whether a selection pool will be necessary
Ensure employees currently on leave, such as maternity leave, are considered
Ensure compliance with the new enhanced redundancy protections for pregnant employees and employees returning from maternity leave, adoption leave or shared parental leave. Further details regarding this can be found in Section 18 above.
Establish objective selection criteria that are easily measurable
Consider whether a redundancy selection matrix is needed as discussed in Section 6 above

Stage 4 – Letter One – Notification of Potential Redundancies
In some redundancy situations there may be no need to select from a pool using scoring criteria. For example, there may be only one employee involved, or several employees who carry out different roles and aren’t part of a selection pool. In this case it may be more appropriate to move to Stage 7 and start the individual consultations. Please carefully consider your situation and seek advice on the right steps to take if needed.

Write to affected employees to notify them of the potential redundancies, including the reasons for proposing redundancies and the selection and scoring criteria (where applicable)
Hold at risk meetings with those employees who are affected
Provide employees with relevant contact information
Inform the trade union or employee representatives if applicable

For collective redundances only:

Provide notice to the Secretary of State using an HR1 form.
Inform employees that there will be collective consultations in the letter notifying them of impending redundancies.

Stage 5 – Collective Redundancies
If your organisation is proposing 20 or more redundancies in a 90-day period, then you must:

Determine who the employee representatives will be and hold an election if necessary
Provide representatives, in writing, with reasons for proposed redundancies and the selection method
Invite the employee representatives to a collective consultation meeting
Hold consultation meetings with representatives to discuss how to avoid or reduce redundancies. They should also be consulted on the selection and scoring criteria.
See Section 9 above for pending changes to collective consultation during 2026-27 following the implementation of the Employment Rights Bill.

Stage 6 – Select Employees for Redundancy
As per Stage 4 above, it may not always be necessary to select employees from a selection pool. Please seek advice as required and proceed to Stage 7 where appropriate.

Select employees for redundancy applying the scoring matrix
Establish a far method of review to ensure objectivity. For example, two managers carrying out the scoring independently.
Ensure the assessment by the scoring panel is recorded in writing and supported with evidence where possible
Audit selections for discrimination

Stage 7 – Letter Two – Invite to First Individual Consultation Meeting

Notify employees that have been selected for redundancy in writing
Invite the employee to their first individual meeting to discuss their selection and inform them of their right to be accompanied
Provide employees with all information relevant to their selection

Stage 8 – First individual consultation meeting
In the first consultation meeting, discuss:

Why they were selected for redundancy
The scoring matrix (where relevant)
Alternative roles in the organisation

Stage 9 – Letter Three – Invite to Second Individual Consultation Meeting

Follow up from the first meeting in writing, inviting the employee to a second meeting and informing them of their right to be accompanied
Hold a second meeting to consult with employees selected for redundancy
Address any outstanding issues that arose in the first meeting
Inform employees of their right to appeal the decision to make them redundant

Stage 10 – Calculate redundancy pay

Determine whether the employee has worked for the organisation for at least two years (minimum for statutory redundancy pay)
Calculate statutory redundancy pay based on the employee’s salary, age and length of service. See Section 16 above.
Determine whether the employee is eligible for enhanced redundancy payments

Stage 11 – Confirm redundancies in writing

You may want to hold a further meeting at this point. You should hold a minimum of two individual consultation meetings. However, it is advisable to hold at least three, and it is a good idea to meet with the employee before confirming the redundancy.
Inform redundant employees of their dismissal due to redundancy in writing

Stage 12 – Support for remaining staff

Ensure that remaining employees are supported appropriately as per Section 19 above.

Further guidance for employers on handling redundancies can be found at:

Notes compiled for Macc by Clare Cooper, Freelance Human Resources Consultant using information from the following sources:

Please note that the information contained within this document is for your guidance only. Professional advice should always be obtained.

Updated September 2025

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