Firstly it is important to ensure that you have done all you can to avoid redundancies. This means releasing any freelancers or self-employed contractors, reducing overtime, avoiding active recruitment, filling vacancies elsewhere with existing employees and so on.
If you’ve come to the conclusion that there’s no other option, you’ll then need to decide which roles will be made redundant. But this needs to be done so fairly and you should focus on the roles to be made redundant – not people. You cannot decide based on pregnancy, part-time employment, age or race and so on. You may look at skills, ability, attendance, length of service and more.
When you’ve made a decision on the roles that are at risk, the next step is to hold redundancy consultations. You must work through the consultation process in full; going ahead without doing so may mean that employees can claim the redundancy process/dismissal was unfair.
If you’re making twenty or more employees redundant within a 90-day period, you will need to follow collective consultation rules and submit an HR1 form to the Secretary of State via the Insolvency Service’s Redundancy Payments Service (RPS). You will need to consult for at least 30 days, increasing to 45 days if you propose to make 100+ redundancies.
Once a redundancy decision is confirmed, the employer must issue written notice of redundancy. The minimum statutory redundancy notice period is determined by the employee’s length of continuous employment:
Contractual notice, if greater than the statutory minimum, must also be observed. The employee may work their notice or be placed on garden leave; in some cases notice may be paid in lieu (PILON) depending on the employment contract. We advise employers on how to calculate and communicate notice correctly to avoid claims for wrongful dismissal.
Employees with at least two years’ continuous employment are entitled to statutory redundancy pay. The amount is calculated using a standard formula based on age, weekly pay (subject to a statutory cap, reviewed annually), and length of service. Employers may choose to offer an enhanced redundancy payment above the statutory minimum; any enhanced terms must be agreed in advance and applied consistently. We calculate statutory entitlements, advise on enhanced schemes, and ensure all payments are correctly documented to avoid disputes.
Before commencing a redundancy procedure in the UK, employers have a duty to consider whether redundancies can be avoided. This is not just good practice; it is a legal obligation that a tribunal will scrutinise if a redundancy dismissal is later challenged. Steps to consider include: ending temporary contracts and agency arrangements, halting active recruitment, reducing overtime, redeploying existing employees to fill vacancies elsewhere in the business, and exploring whether temporary wage reductions or hours adjustments are feasible. Harwood HR advises employers on how to document this consideration process properly, providing evidence that all reasonable alternatives were explored before redundancies were confirmed.
If redundancies cannot be avoided, you must first define which roles are at risk, then apply fair, objective redundancy selection criteria to identify which employees will be made redundant. Selection must focus on the roles, not individuals. Criteria based on protected characteristics, pregnancy, age, disability, race, sex, or part-time status render a redundancy automatically unfair. Commonly accepted criteria include skills and competencies, attendance records, performance, flexibility, and length of service (though LIFO must be used carefully to avoid age discrimination).
The criteria must be defined in advance, applied consistently, and documented. We advise employers on which criteria are appropriate for their workforce structure, how to score employees objectively, and how to document the selection process in a way that withstands tribunal scrutiny.
The redundancy consultation duty applies to every redundancy — regardless of the number of employees affected. Even where only one role is being made redundant, the employer must hold a genuine individual consultation before the decision is finalised. Individual consultation must be meaningful — not a formality conducted after the decision has already been made. The employee must be told they are at risk, given the opportunity to propose alternatives, and given reasonable time to respond before a final decision is communicated.
Where 20 or more employees at one establishment are proposed for redundancy within a 90-day period, collective redundancy consultation rules apply. These requirements are in addition to, not instead of, individual consultation:
We manage the redundancy consultation process for employers, from identifying whether collective rules apply through to planning consultation timetables, preparing written notification to employee representatives, and ensuring the process is documented at every stage.
Our redundancy advice for employers service covers the full lifecycle of the process, from the initial decision to explore redundancies through to post-redundancy support for the retained workforce:
Redundancy support is available via our retained HR service (included as standard) or as a standalone project through tailored HR project support with a fixed fee agreed upfront. For single-role redundancies, our pay-as-you-go service provides expert guidance on a per-hour basis.
Duncan is a CIPD-qualified HR leader with 24+ years’ experience across retail, automotive, manufacturing and financial services. His expertise includes HR leadership, restructuring, acquisitions, employee relations and regulatory change. He has held senior roles with Sytner Group, Porsche GB and Dollar Financial Group and founded Harwood HR Solutions.
Zoe is a CIPD-qualified HR professional with extensive experience in HR, operations and training. She helped grow a business from 4 to 250+ employees and has expertise in acquisitions, TUPE, restructuring, recruitment, employee relations and FCA regulatory change, with a strong record of delivering HR projects without litigation.
Charlotte is a qualified HR professional with experience across people planning, organisational change, performance, talent and employee relations. She progressed to HR Business Partner at The Money Shop, supporting senior leadership through structural and financial change. Her expertise includes TUPE, redundancies, sickness absence and HR support across multiple sectors, including social care.
Yes. Harwood HR Solutions provides redundancy support customised to the unique requirements of each business. Whether you’re a small enterprise or a larger organisation, our services are designed to align with your specific operational and workforce considerations.
Effective redundancy support ensures transparent communication and fair procedures, which can help sustain employee morale during challenging times. By managing the process with sensitivity and clarity, businesses can foster trust and minimise uncertainty among remaining staff.
The duration of the redundancy process varies depending on factors like the number of employees affected and the complexity of the situation. Harwood HR Solutions assists in creating realistic timelines to ensure the process is conducted efficiently and in compliance with legal obligations.
Redundancy procedures must adhere to UK employment laws, including fair selection criteria, consultation requirements and appropriate notice periods. Harwood HR Solutions ensures that all legal aspects are meticulously addressed to mitigate risks and uphold employee rights.
Yes. We provide training for management teams to equip them with the skills necessary to handle redundancy processes effectively. This includes guidance on conducting consultations, delivering difficult messages and supporting affected employees.
Absolutely. Managing redundancies with professionalism and empathy can enhance a company’s reputation. Harwood HR Solutions helps businesses navigate the process in a manner that reflects positively on their commitment to fair and respectful treatment of employees.
Businesses of all sizes and sectors can benefit from redundancy support, particularly those undergoing restructuring or facing economic challenges. Harwood HR Solutions has experience across various industries, providing tailored support to meet diverse organisational needs.
Yes. Our support extends beyond the redundancy process, offering ongoing HR assistance to help businesses adjust and move forward. This includes advice on workforce planning, employee engagement and rebuilding team dynamics.
Businesses should avoid inadequate communication, lack of proper documentation and failure to follow legal procedures. Such oversights can lead to employee dissatisfaction and potential legal challenges. Harwood HR Solutions provides guidance to help businesses navigate the process correctly.
Yes. We offer outplacement services to assist employees in transitioning to new opportunities. This includes career counselling, CV writing assistance and interview preparation to support their next career steps.
Our retained HR service offers you all the benefits of having your own HR department, but at a fraction of the cost.
Read MoreProviding you with expert project management to ensure all your legal requirements are met and helping you manage any associated risks.
Read MoreEmployment contracts will help your staff understand the obligations they have to your business, and you will have peace of mind knowing that your business is compliant with government regulations.
Read MoreWe make it easy to meet your legal obligation to provide a written statement to your employees detailing the precise terms and conditions of their employment.
Read MoreWith us, you can create an easy-to-read company handbook that covers all bases. Our professionals guide and advise you on the best approach for your enterprise.
Read MoreIf you want to ensure that employee wellbeing is always at the forefront of what you do, then you can expect to take advantage of a lot of benefits.
Read More
Retained HR gives you ongoing support for a fixed monthly fee, best if you deal with HR activity most months or employ 10+ people. Pay-as-you-go HR support means you pay...
Read more