Redundancy: What Employers Need to Do
Considering redundancies? The process matters as much as the business reason. Here is how employers can approach difficult workforce decisions fairly and carefully.
At a Glance: Key Redundancy Compliance Rules
- Genuine Business Case: Ensure the situation reflects a workplace closure, business closure, or reduced requirement for work of a specific kind.
- Meaningful Consultation: Individual consultation is legally vital across all programmes; predetermined outcomes constitute unfair dismissal.
- Collective Consultation Thresholds: 20+ proposed redundancies within 90 days trigger statutory minimum consultation periods (30 to 45 days) and HR1 filings.
- Protective Award Liability: As of April 2026, maximum protective awards for collective consultation failures reach up to 180 days' pay per employee.
Is it a genuine redundancy situation?
Redundancy generally concerns a business closure, workplace closure or reduced need for employees to do work of a particular kind. Before announcing decisions, establish the business rationale, which roles are affected and whether alternatives could avoid dismissals.
Consult before making final decisions
Meaningful consultation is not a box-ticking exercise. Explain the proposal, listen to concerns, consider alternatives and allow the employee to respond. Even where fewer than 20 redundancies are proposed, individual consultation is important. Do not present a predetermined outcome as a consultation.
The Redundancy Roadmap: Business Rationale, Selection Pools, Consultation Stages, and Notice Calculations
How to create a selection pool and criteria
Where selection is necessary, identify a defensible pool and use fair, objective criteria supported by evidence. Consider disability, family leave and other protected characteristics. Check whether special priority rules apply to suitable alternative vacancies for employees with relevant pregnancy or family leave protections.
Defensible Objective Criteria
Measurable skills, performance records, verifiable qualifications, disciplinary records, and objective skills matrices.
Must be backed by contemporaneous workplace evidence and documentation.High-Risk Subjective Criteria
Unsubstantiated management opinion, "enthusiasm", subjective attitude scores, or criteria that indirectly penalise disability or maternity leave.
Frequently challenged and overturned at Employment Tribunals.When do collective consultation rules apply?
As at October 2026, the established trigger is 20 or more proposed redundancies at one establishment within 90 days. Collective consultation and HR1 notification obligations may apply. For 20 to 99 proposed redundancies, consultation must begin at least 30 days before the first dismissal takes effect; for 100 or more, at least 45 days. Changes to thresholds are expected in 2027, so check the rules in force when planning a restructure.
Notice, payments and alternatives
Check contractual and statutory notice, eligibility for statutory redundancy pay, holiday pay and any enhanced terms. Explore suitable alternative employment and redeployment. Employees may also have rights to reasonable time off to seek work or training, subject to statutory eligibility.
The cost of getting it wrong
An unfair or poorly documented process can lead to tribunal claims, damage to trust and avoidable costs. Since April 2026, the maximum protective award for failures in collective consultation has increased to 180 days’ pay per affected employee. Seek specialist advice before beginning a large or complex programme.
Frequently asked questions
Can I make one employee redundant?
Yes, where there is a genuine redundancy situation and the selection and consultation process are fair.
Do I have to consult if fewer than 20 people are affected?
Individual consultation is still important even though statutory collective consultation is not normally triggered.
Can I make someone redundant while they are off sick or on family leave?
Potentially, but extra protections and discrimination risks can arise. Seek advice before proceeding.
How Nectar HR can help
You do not need to work through a difficult employee issue alone. Nectar HR supports employers with practical advice, documentation, fair procedures and hands-on HR case management. We will help you understand your options, the risks and the next sensible step.
📖 Related Guidance in This Series
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