This guide outlines common redundancy steps from planning to final payments. It cannot guarantee a fair or legally compliant process in every case, and Northern Ireland has different rules.
Document clearly why redundancies are necessary — reduced revenue, restructuring, technology changes, or closure of a business unit. The reason must be genuine; redundancy cannot be used as a disguised dismissal for performance or conduct reasons.
Consider which roles or groups are affected and document the reasons for the selection pool. A pool of one is not automatically unfair but should be justifiable in the circumstances.
Create a scoring matrix with measurable, objective criteria such as: skills and qualifications; performance against targets; attendance record (excluding disability-related absences); and disciplinary record. Apply the scores consistently and document everything.
Notify all employees in the selection pool that they are at risk of redundancy. This is not a final decision — it is the start of consultation. For fewer than 20 redundancies, there is no fixed consultation period, but it must be genuine and meaningful.
Consult affected employees meaningfully before deciding, including about alternatives. There is no general statutory accompaniment right for every individual redundancy meeting, although policy or agreements may allow it. Record the discussion.
Consider suitable alternative roles before dismissal. Eligible pregnant employees and employees on or recently returned from qualifying family leave in Great Britain have priority for suitable vacancies. A four-week statutory trial period can apply when the terms differ.
Once consultation is complete and no alternatives are available, confirm the redundancy in writing. The letter must include the reasons, notice period, redundancy pay calculation, and the right to appeal.
Acas recommends an appeal heard by someone uninvolved where possible. The Acas Code of Practice on Disciplinary and Grievance Procedures does not generally apply to genuine redundancy dismissal, so its 25% adjustment should not be assumed. See Acas.
Calculate and pay: statutory redundancy pay; notice pay (or PILON); accrued holiday pay; and any enhanced payments under the contract. Issue a P45 on the last day of employment.