Expert Redundancy Advice: A UK Guide to Legal Compliance and Fair Treatment

Redundancy is a challenging and often emotional process for both employers and employees. In the UK, it is a legal form of dismissal that occurs when a role is no longer required due to reasons such as business closure, relocation, or restructuring. When managed correctly, redundancy can be handled fairly and respectfully. However, failure to follow the correct legal processes can lead to claims of unfair dismissal and damage to a company’s reputation.

Understanding your legal rights and obligations during redundancy is essential. For employers, this means ensuring compliance with UK employment law and maintaining transparency throughout the process. For employees, knowing your entitlements and how to respond to redundancy decisions is key to protecting your future.

Hopkins Solicitors provides expert legal advice and support to both employers and employees during redundancy. With over 100 experienced staff, their client-focused approach ensures fair treatment, compliance, and peace of mind throughout the process.

Understanding Redundancy 

What Constitutes Redundancy? 

Redundancy occurs when an employer needs to reduce their workforce for business-related reasons. According to UK employment law, redundancy may arise in situations such as:

• The business closing down completely. This applies when a company ceases operations altogether, meaning all roles are at risk and the employer no longer requires any staff.
• The closure of a specific workplace or office. Even if the wider business continues to operate, shutting down one branch, office, or site may lead to job losses in that location.
• A reduced need for employees to carry out work of a particular kind. This could happen due to automation, outsourcing, or decreased demand, making certain roles or departments redundant.

It is important to understand that redundancy is not a reflection of an employee’s performance or conduct. Instead, it is driven by operational needs and structural changes within a business. This distinguishes redundancy from other forms of dismissal, such as those based on disciplinary issues.

Employers must clearly demonstrate that the redundancy situation is genuine and not being used as a pretext for dismissing staff unfairly.

Legal Framework Governing Redundancy 

The main legislation governing redundancy in the UK is the Employment Rights Act 1996. This comprehensive law outlines the rights of employees and the legal responsibilities of employers during a redundancy process. It forms the backbone of fair redundancy practices and ensures that dismissals on the grounds of redundancy are lawful and justified.

Employers must ensure the redundancy process is:

• Fair and transparent. Employers must clearly communicate the reasons for redundancy and apply consistent procedures that employees can understand and trust.
• Non-discriminatory. Redundancy decisions must not be based on age, gender, disability, pregnancy, or any other protected characteristic to avoid unlawful discrimination.
• Fully compliant with statutory obligations. This includes providing correct notice periods, redundancy pay, and conducting proper consultations with all affected employees.

Failure to follow proper procedures can result in claims of unfair dismissal or automatic unfair dismissal. This is particularly relevant when redundancies are used as a cover for discriminatory practices, or if employees are selected due to protected characteristics such as age, gender, maternity, or disability.

In addition to the Employment Rights Act 1996, employers must consider relevant case law and best practice guidance from advisory bodies such as Acas and Citizens Advice. Adhering to these standards is crucial to prevent legal disputes, maintain employee morale, and uphold the organisation’s reputation.

Redundancy Procedures for Employers 

Planning and Consultation 

Redundancy should never be a hasty decision. Employers must begin with a clear, evidence-based business case that outlines the commercial or operational reasons for making roles redundant. This business case should include financial data, organisational charts, and any strategic shifts that justify the proposed workforce reductions. Early planning enables employers to explore alternatives to redundancy, identify roles at risk, and ensure a fair, legally compliant process from the outset.

A critical part of the redundancy process is consultation. Employers have a legal obligation to engage in meaningful consultation with employees who may be affected. This includes:

• Providing written notice of potential redundancy. Employees must receive a written statement outlining the reasons for the proposed redundancies, the roles affected, and the timeline of the process.
• Holding consultation meetings to discuss alternatives, answer questions, and gather feedback. These meetings provide employees with an opportunity to understand the business rationale, suggest ways to avoid redundancies, and ask about selection criteria and entitlements.
• Allowing employees to be accompanied during consultations. Employees have the right to be accompanied by a trade union representative or a colleague during individual consultation meetings, offering support and advocacy during difficult conversations.

If 20 or more employees are affected within a 90-day period, employers must also carry out collective consultation. This involves engaging with employee representatives or trade unions and adhering to minimum consultation periods. Additionally, employers must notify the Redundancy Payments Service (RPS) using form HR1, which is a legal requirement.

Selection Criteria and Fair Process 

The selection process must be objective, transparent, and based on consistent criteria that are relevant to the business’s needs. Selection should not be arbitrary, and employees should understand how decisions are made. Common selection criteria include:

• Skills and experience. Employers may assess which employees have the qualifications, technical capabilities, or certifications most essential to future business needs.
• Length of service. Sometimes referred to as “last in, first out,” this method rewards loyalty but must be balanced with other factors to avoid potential age discrimination.
• Disciplinary record. Employers can consider documented disciplinary history, but they must ensure the records are up-to-date, accurate, and relevant.
• Performance metrics. Performance appraisals or KPIs can form part of the assessment, provided the data used is recent, reliable, and consistently applied across the workforce.

Employers must take care not to apply any criteria that could indirectly discriminate against employees with protected characteristics under the Equality Act 2010. For example, penalising part-time workers or those on maternity leave could lead to successful claims of unfair or discriminatory dismissal.

The selected criteria should be clearly communicated, applied consistently, and open to challenge. Employees must be given an opportunity to appeal or discuss their scores during consultation meetings, and final decisions should be confirmed in writing along with the rationale.

Notice Periods and Statutory Redundancy Pay 

Employees who have been continuously employed for two years or more are entitled to statutory redundancy pay. The amount is calculated based on:

• Age.
• Length of continuous service.
• Weekly gross pay (subject to a statutory cap, currently £656 per week).

Statutory notice periods also apply:

• One week for employment between one month and two years.
• One week for each year of service, up to 12 years.

In addition to statutory redundancy pay, some employers may offer enhanced redundancy packages as part of the employment contract or workplace policy.

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Employee Rights and Support During Redundancy 

Rights to Consultation and Fair Selection 

Employees have the right to be consulted individually or collectively, depending on the scale of redundancy. The consultation process should give employees the opportunity to:

• Understand the reasons for redundancy.
• Explore alternatives to redundancy.
• Challenge unfair selection.

If employees believe the process was unfair or discriminatory, they may raise a grievance or lodge a claim for unfair dismissal at an employment tribunal.

Transparency, fairness, and communication are critical throughout this stage.

Entitlements and Support Services 

Redundant employees are entitled to:

• Statutory redundancy pay (if eligible).
• Notice pay.
• Time off to seek new employment (if employed for at least two years).
• Access to internal or external support services, such as career coaching or job search support.

Hopkins Solicitors offers tailored redundancy advice and representation. They can help employees understand their entitlements and guide them through disputes or tribunal claims if needed.

Challenging Redundancy Decisions 

If an employee believes their redundancy was unfair, they should act quickly. The first step is to:

• Raise the issue informally or through an internal grievance process.
• Seek legal advice from an employment specialist.
• Submit a claim to an employment tribunal within three months of dismissal, if necessary.

Common grounds for challenging redundancy include:

• Lack of genuine redundancy situation.
• Discrimination or unfair selection.
• Failure to consult or follow legal procedures.

Hopkins Solicitors can assess the strength of a claim and provide legal support at every stage.

Alternative Options and Mitigating Redundancy Impact 

Exploring Alternatives to Redundancy 

Employers are encouraged to explore all reasonable alternatives before proceeding with redundancies. Not only can this preserve valuable talent within the organisation, but it also demonstrates that every effort has been made to avoid compulsory job losses. Alternatives to redundancy may include:

• Redeployment to other roles. Employers should assess whether at-risk employees can be offered vacant positions within the business. This may require retraining or adjusting responsibilities, but it allows employees to continue contributing without the need for dismissal.
• Reduced working hours or job sharing. Implementing part-time schedules, job sharing arrangements, or flexible working patterns can help spread available work across the team and reduce costs without ending employment contracts.
• Temporary layoffs or furlough. In periods of short-term downturn, employers might consider temporarily laying off staff or using government-supported furlough schemes, allowing the business to retain employees while reducing immediate overheads.
• Voluntary redundancy schemes. Inviting employees to volunteer for redundancy can sometimes reduce the number of compulsory redundancies needed. It gives employees more control and may be attractive to those nearing retirement or seeking a career change.

Raising these options during consultation meetings demonstrates goodwill and a proactive approach to minimising negative impacts. In many cases, employees are open to alternatives that keep them in employment or allow a more planned exit.

Managing the Aftermath of Redundancy 

Post-redundancy periods can be unsettling for remaining staff, particularly if colleagues and friends have lost their jobs. The uncertainty can lead to decreased morale, reduced productivity, and a lingering sense of insecurity. Employers should take strategic steps to rebuild trust and stability. These may include:

• Communicate openly about the changes and the future direction of the business. Share clear messages about why redundancies occurred, what steps are being taken to move forward, and how remaining staff fit into the company’s future plans.
• Offer counselling and support services. Providing access to mental health resources, employee assistance programmes (EAPs), or third-party counsellors can help staff cope with the emotional impact of redundancies.
• Involve employees in rebuilding plans. Encouraging remaining employees to contribute ideas and be part of restructuring efforts can restore a sense of ownership, purpose, and engagement.

By supporting those who remain, employers help create a more resilient and motivated workforce, ensuring the business is well-positioned to recover and thrive.

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How Hopkins Solicitors Can Assist 

Hopkins Solicitors has extensive experience in guiding both employers and employees through redundancy. Their services include:

• Legal advice on redundancy procedures.
• Representation in disputes or employment tribunals.
• Assistance with drafting and reviewing consultation documentation.
• Support for employees exploring alternative employment or challenging unfair dismissals.

With a reputation for professional, empathetic service and clear legal advice, Hopkins Solicitors ensures that the redundancy process is legally compliant and handled with integrity. Whether you’re an employer planning workforce changes or an employee facing job loss, their team is here to support you every step of the way.

Conclusion 

Redundancy is a complex and sensitive process. Employers must plan carefully, follow legal requirements, and treat employees with fairness and respect. Employees, in turn, should understand their rights and know how to respond if they believe they’ve been treated unfairly.

Following UK employment law is not just a legal obligation but a moral one. A fair redundancy process protects your business, your reputation, and your people.

Hopkins Solicitors is a trusted partner for navigating redundancy. With deep expertise in employment law and a client-first approach, they provide clarity, confidence, and compassionate support during difficult transitions. Whether you need advice, representation, or help understanding your options, their team is ready to help.

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