Redundancy

When a situation may be redundancy

Redundancy can arise when a business closes, a workplace closes or the employer needs fewer employees to do work of a particular kind. It is about the organisation's need for work, not simply dissatisfaction with one person's performance or conduct.

A role changing does not automatically make its holder redundant. Start with the business reason and the work that will remain. This helps identify who may be affected and whether there is a genuine redundancy situation.

What a fair process involves

Consultation should happen while proposals can still change. Explain the business reason, listen to alternatives and give affected employees enough information to respond. Where selection is needed, use a reasonable pool and objective criteria that can be supported with evidence.

The employer must try to find suitable alternative employment for affected employees. Collective consultation rules apply when an employer proposes 20 or more redundancies at one establishment within 90 days. The timetable and notification duties are strict, so identify that possibility early.

Keep the reasoning clear

Record the proposal, consultation, selection approach, alternatives considered and final decisions. Confirm notice, redundancy pay where eligible, holiday pay and the right to appeal. Keep calculations with the information used to make them.

Redundancy is a high-stakes process. Use the current Acas redundancy guidance and check the collective-consultation requirements before setting the timetable.