Redundancy is never an easy subject, but it can sometimes be necessary to keep an organisation afloat. Whether due to financial constraints, a shift in business strategy, or technological advancements, redundancy should always be handled with care, professionalism, and compassion.
Here’s a step-by-step guide to managing the redundancy process fairly and legally within the UK, while keeping your organisation’s best interests at heart.
Before proceeding with redundancy, it’s crucial to evaluate the reasons behind it and determine if it’s truly the only viable option. Redundancy should be a last resort, used in situations where a role is no longer needed due to changes in business operations, declining demand, or restructuring.
Take time to explore alternatives such as redeploying staff to other roles, offering voluntary redundancy, or reducing hours. By considering all available options, you may be able to avoid compulsory redundancies, minimise disruption, and maintain morale within your team.
Once redundancy is being considered, it’s important to assess whether the role in question is a stand-alone position or part of a group of similar roles. If it’s part of a wider team of similar roles, but you’re not planning on making the entire team redundant, you’ll need to establish fair selection criteria to determine which employees may be affected.
In this case, redundancy cannot be based solely on personal preferences or simply drawn at random – it must be objective and non-discriminatory. For example, you may want to base it on the following criteria:
To avoid unfair dismissal and discriminatory claims, you should avoid making your decision based on any protected characteristics, including:
In cases where 20 or more employees are at risk of being made redundant within 90 days, UK law requires collective consultation. This means consulting on your redundancy proposals with any recognised trade union, or employee representatives if there is not one.
These representatives act as a voice for the affected staff, ensuring fair communication and consultation throughout the process. They help to discuss the reasons for redundancy and explore possible alternatives.
Clear, compassionate communication is essential when managing redundancies. Start by creating a detailed communications plan that outlines how you will inform those directly affected, as well as the wider business.
For those at risk, plan to ensure the message is delivered personally and sensitively, explaining the reasons, timelines, and support available. For the wider organisation, transparency is key – if you plan to keep all employees informed, you will prevent rumours from spreading and in turn, minimise anxiety.
It’s now time to meet with the affected employee(s) to explain the proposal. This step involves discussing the reasons for the proposed redundancy and exploring potential alternatives. Make it clear that they have the right to be accompanied during the meeting and ensure to take meeting notes.
The consultation should be an open and transparent conversation, allowing employees to ask questions, raise concerns, and suggest ways to avoid redundancy, such as redeployment or reduced hours. The aim is to ensure the process is fair and that the employee feels heard and supported.
Following the initial consultation, it’s important to hold a second meeting with the employee(s) roughly one week later, to review any developments and further discuss their situation. This follow-up meeting allows you to address any feedback from the first consultation, provide updates, and clarify the next steps.
It’s also an opportunity to further explore the alternatives to redundancy discussed in the first meeting, or any additional ideas that have emerged since, and ensure the employee feels fully informed. This continuous conversation helps to demonstrate fairness and transparency, helping to manage expectations and offer support.
In the final meeting, you must confirm the redundancy decision with the employee(s). This conversation should be handled with care and clarity. Be sure to reiterate the reasons for redundancy and acknowledge any efforts the organisation has made to avoid it.
At this stage, provide full details of their leaving arrangements, redundancy package including notice periods and redundancy pay, and any support services such as outplacement (to help them secure alternative employment) or counselling. Allow the employee time to process the information and ask any final questions.
Once the redundancy is complete, it’s a good idea to reflect on how the project went. Ask yourself if the process was as smooth and fair as possible and consider if there was any part of the process you would change if you had to make someone redundant again in the future.
In addition, we’d suggest reassuring the remaining team through planned communications – keeping them in the loop with what has happened and being transparent about the business’ future – to prevent any anxiety and insecurity among remaining employees.
Do you need some HR support to help deal with a redundancy in your organisation? Whether you want over-the-phone advice or would rather one of our professional team come in and manage a redundancy on your behalf, get in contact with us today.
