How to Make Someone Redundant

Redundancy is a potentially fair reason for dismissal, but the process must be handled carefully. Mistakes can lead to unfair dismissal claims and significant compensation awards.

When Is It Actually Redundancy?

Redundancy has a specific legal definition. The role must be disappearing because:

• The business is closing entirely
• The workplace is closing (moving location)
• The need for work of that kind has diminished (fewer people needed to do the work)

If the role still exists but you want a different person doing it, that's not redundancy.

Overview of the Process

1. Plan and prepare
2. Consult (collective if 20+)
3. Select fairly
4. Consider alternatives
5. Conduct individual consultation
6. Give notice
7. Calculate and pay statutory redundancy

Step 1: Plan and Prepare

Before Announcing Anything

• Confirm it's genuinely a redundancy situation
• Identify the pool of potentially affected employees
• Draft selection criteria
• Consider alternatives to redundancy
• Determine if collective consultation applies
• Plan the consultation process
• Prepare financial calculations

Collective Consultation Triggers

Number at Risk	Minimum Consultation Period
20-99 employees	30 days before first dismissal
100+ employees	45 days before first dismissal

This applies at one "establishment" (location).

Step 2: Consultation

Collective Consultation (20+ employees)

If collective consultation applies:

1. Notify the government using form HR1
2. Consult with employee representatives (union or elected reps)
3. Share information about:
   • Reasons for redundancy
   • Numbers affected
   • Selection criteria
   • Redundancy payments
   • Timing

Failure to collectively consult can result in a protective award of up to 90 days' pay per affected employee.

Individual Consultation (All Redundancies)

Even if collective consultation doesn't apply, you must consult individually with each affected employee:

• Explain the situation
• Discuss alternatives
• Consider their representations
• Genuinely keep an open mind

Key principle: Consultation must be meaningful. Don't treat it as a box-ticking exercise.

Step 3: Selection Criteria

What Makes Good Selection Criteria?

Criteria should be:

• Objective - measurable, not subjective
• Relevant - related to business needs
• Applied fairly - scored consistently
• Non-discriminatory - no unlawful bias

Common Selection Criteria

Criterion	Notes
Skills/qualifications	Relevant to future needs
Performance	Based on documented records
Attendance	Exclude disability/pregnancy absence
Disciplinary record	Current warnings only
Length of service	Can be used but don't over-rely

Criteria to Avoid

• Protected characteristics (age, sex, race, etc.)
• Pregnancy or maternity leave
• Part-time or fixed-term status
• Trade union membership
• Whistleblowing
• Asserting statutory rights

Step 4: Consider Alternatives

Before confirming any redundancy, explore:

Within the Business

• Redeployment to other roles
• Reduced hours
• Job sharing
• Retraining

Suitable Alternative Employment

If you offer suitable alternative employment and the employee unreasonably refuses, they lose the right to statutory redundancy pay.

The alternative must be:

• Offered before current employment ends
• Starting within 4 weeks of redundancy
• Suitable in terms of pay, status, and nature of work

Employees have a 4-week trial period in the new role.

Step 5: Individual Consultation Meetings

Meeting 1: At Risk Notification

• Explain the business situation
• Confirm they're "at risk" of redundancy
• Explain the selection criteria
• Give them their scores (consider this)
• Explain alternatives being considered
• Invite questions and representations

Meeting 2: Consultation

• Allow time for them to consider
• Discuss any alternatives they've identified
• Consider any representations
• Explain next steps

Meeting 3: Decision

• Confirm the outcome
• If redundancy confirmed:
  • Confirm notice period and last day
  • Explain redundancy pay
  • Explain right to appeal
  • Discuss time off to find new work

Allow the right to be accompanied at all meetings.

Step 6: Notice and Pay

Notice Period

The longer of:

• Statutory minimum (1 week per year, up to 12 weeks)
• Contractual notice

Statutory Redundancy Pay

Employees with 2+ years' service are entitled to:

• 0.5 weeks' pay for each year aged under 22
• 1 week's pay for each year aged 22-40
• 1.5 weeks' pay for each year aged 41+

Maximum 20 years counts. Weekly pay capped at £700 (2024-25).

Other Payments

• Pay in lieu of notice (if not working notice)
• Accrued holiday pay
• Any enhanced redundancy (check contract)

Step 7: Right of Appeal

Offer an appeal against the redundancy decision. The appeal should consider:

• Was the selection process fair?
• Were alternatives properly explored?
• Any new information

Time Off to Find Work

Employees under notice of redundancy who've worked 2+ years have the right to reasonable paid time off to:

• Look for new employment
• Arrange training

Common Redundancy Mistakes

1. No genuine redundancy situation - role still exists
2. Pre-determined outcome - consulting after deciding
3. Unfair selection - subjective or discriminatory criteria
4. No consultation - or inadequate consultation
5. Not considering alternatives - redeployment options
6. Wrong notice or pay - calculations errors
7. No appeal - failing to offer this

Documentation Checklist

Keep records of:

• Business case for redundancy
• Pool identification
• Selection criteria and scores
• Consultation meeting notes
• Alternatives considered
• Final decision letters
• Redundancy payment calculations