Learn how to use redundancy as a last resort when all alternative approaches have been considered
Redundancy is distressing for employees and can lower staff morale and productivity. It should therefore be a last resort.
This factsheet suggests alternatives to redundancy and provides guidance on managing redundancy when it's unavoidable. It looks at the steps in the redundancy process, including identifying the pool for selection, seeking volunteers, selection for redundancy, consulting employees, appeals and dismissals, suitable alternative employment and redundancy payments. Further information on managing the process is available on our redundancy guidance for people professionals.
From 6 April 2026 the Employment Rights Act 2025 will change the maximum period of the collective redundancy protective award the current 90 days to 180 days.
In 2027 a new threshold test will be introduced meaning that employers proposing 20 or more redundancies ‘at one establishment’ OR a certain number/percentage of employees are affected across the employing entity must carry out collective consultation. This new threshold test is yet to be determined and will be set out in regulations.
Keep up to date with the latest on these changes with our Employment Rights Act 2025 Tracker.
We will update this page once any changes are enforced.
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