Redundancy: Guidance for people professionals

Redundancy, when a clear and fair process is followed, is a fair dismissal. People professionals are often the people who have to ‘handle a redundancy’. 

While there is no legal requirement to have a formal written redundancy policy, an employer will need to be able to provide suitable evidence to show that they have met the relevant legal requirements if the dismissal leads to an unfair dismissal claim, and where the proposed redundancy pool is for 20 employees or more at a ‘single establishment’ (in this case, collective consultation rules start). A written policy or procedure which guides the redundancy process may therefore assist an employer to avoid successful tribunal claims.

Whether the employer has a formal procedure, or chooses to follow a more flexible approach, when handling a redundancy, it is recommended that people professionals should, at least, include these steps:  

1. Sensitively and accurately plan and record.
2. Identify the pool for selection (but not the identity of people who “will” be made redundant – the selection process should not be pre-determined).
3. Consult employees.
4. Seek volunteers where appropriate. 
5. Make the selections for redundancy.
6. Offer suitable alternative employment.
7. Hear appeals.
8. Arrange redundancy payments.
9. Work with compassion throughout.

The Employment Rights Act 2025 will make changes to redundancy rules. Keep up to date with the latest on these changes with our tracker of potential law changes.