Essential Tips for the Redundancy Process and How to Manage It Effectively

Redundancy process and professional HR support

Are you facing the possibility of redundancies in your workplace this year? Whether you’re involved in HR, management, or simply navigating the process, handling redundancies can feel overwhelming. It’s a sensitive task requiring fairness, clarity, and compliance with employment laws to ensure the process is managed correctly for everyone involved.

If you’re unsure where to begin, you’re not alone. Many people struggle with balancing legal requirements, empathy for those affected, and the practical steps involved. The good news? When managed properly, redundancies can be handled in a way that protects employee dignity, minimises risk, and maintains workplace trust.

Talk Staff’s expert HR services can support you through every stage of the redundancy process, offering professional guidance to ensure compliance while prioritising people’s wellbeing.

Disclaimer: This blog provides general information about redundancy processes and employment law updates. It is not intended as legal or financial advice. For specific guidance tailored to your situation, please consult a qualified HR or legal professional.

Redundancy Process: How to Manage It Properly

A structured redundancy process helps avoid legal pitfalls while maintaining trust and morale within the workplace. Follow these steps to ensure compliance and fairness throughout:

Clarify the Business Reasons for Redundancy

Before starting the redundancy process, clearly define the reasons for considering job losses. Common grounds for redundancy include:

- Economic downturn or reduced revenue

Business restructuring or merging roles
Technological advancements reducing staffing needs
Company relocation or site closure

Document these reasons thoroughly, as they will be essential when communicating with staff and justifying decisions.

Conduct a Genuine Consultation Process

Open communication is critical when handling redundancies. Legally, you must consult with employees about potential job losses. A genuine consultation involves:

Notifying affected employees early in the process
Sharing the reasons behind the decision
Exploring alternatives to redundancy, such as reduced hours or redeployment
Considering employee feedback and suggestions

Failure to conduct proper consultations can result in claims of unfair dismissal. Learn more about ACAS redundancy guidelines.

Create a Fair Selection Process

If redundancy becomes inevitable, a clear and unbiased selection process is crucial. Use objective criteria, such as:

Skills and qualifications
Work performance and disciplinary records
Attendance record (ensuring non-discriminatory assessment)
Length of service (if applicable)

Avoid any form of discrimination and ensure the process is transparent. ACAS selection criteria guidance.

Provide Notice Periods and Redundancy Pay

Redundancy laws require businesses to provide proper notice periods and redundancy pay. Key considerations include:

Statutory Notice Periods: Depending on the length of service, employees are entitled to varying notice durations.
Statutory Redundancy Pay: Based on age, length of service, and weekly pay (subject to caps).
Contractual Pay: If employment contracts offer enhanced redundancy packages, these must be honored.

Calculate your statutory redundancy pay using the official government tool.

Offer Emotional and Career Support

Redundancy can take a significant emotional toll on affected employees. Providing outplacement support can soften the impact, such as:

Career coaching sessions
CV writing assistance
Job search workshops

Talk Staff specialises in redundancy support services, helping businesses provide compassionate care for employees during transitions.

Changes in UK Employment Laws for 2025

It’s important for businesses to stay informed about upcoming changes to employment law, as they can significantly impact redundancy processes. The UK government has proposed amendments to the Employment Rights Act, with new provisions expected to take effect by 2026. However, these changes still need to go through the parliamentary approval process before becoming law.

Key Proposed Changes:

Collective Consultation Thresholds Adjustment: The requirement for collective consultation currently applies to 20 or more redundancies in a single establishment. The proposed amendment would extend this threshold to include all redundancies across the entire business.
Extended Consultation Periods: For larger redundancies, the consultation period could be extended from 45 to 90 days.
Increased Protections for Pregnant Employees: Protections during redundancy will be extended from the start of pregnancy through to 18 months after returning from maternity or parental leave.
Unfair Dismissal Protections from Day One: Employees may gain the right to claim unfair dismissal from the first day of employment instead of waiting for two years of service.
Restrictions on “Fire and Rehire”: New restrictions could limit the ability of businesses to dismiss and rehire staff under altered terms unless absolutely necessary for business survival.

Read more on ACAS’s official guidance.

Tailoring the Redundancy Process to Company Size

The redundancy process can vary depending on the size of the company. It’s essential to understand these differences to ensure compliance and fairness.

Small Businesses (Fewer than 20 Employees)

Individual consultation with each affected employee
Clear, objective selection criteria
Minimal notice periods but still requiring transparency and fairness

Medium to Large Businesses (20 or More Employees)

Collective consultation with trade unions or elected representatives
Extended consultation periods for larger redundancies
Mandatory notification to the Redundancy Payments Service (RPS).

Why Choose Talk Staff for Redundancy Support?

Talk Staff provides end-to-end redundancy management solutions, ensuring your workplace navigates difficult decisions with compassion and compliance. Our services include:

Tailored redundancy consultations
Employee wellbeing and support programs
Compliance checks and legal guidance
Career transition and outplacement services

By partnering with Talk Staff, you can ensure the redundancy process is handled professionally, minimising risks while protecting your employer brand.

FAQs

What is the redundancy process?
The redundancy process involves steps a business must follow when terminating employment due to reduced staffing needs. It includes consultation, fair selection, and offering redundancy pay.
How long should a redundancy consultation last?
The length depends on the number of employees affected. For fewer than 20 redundancies, there is no minimum period, but for 20-99 employees, it must be at least 30 days.
Can an employee challenge a redundancy decision?
Yes, employees can challenge redundancy if the process was unfair, discriminatory, or lacked proper consultation.
What support should be provided during redundancy?
Support can include emotional assistance, career coaching, CV workshops, and outplacement services.
Why is legal compliance important in redundancy?
Legal compliance prevents claims of unfair dismissal, reducing the risk of costly legal disputes and protecting the company’s reputation.
How can Talk Staff assist with redundancy?
Talk Staff provides expert HR services, including redundancy planning, legal compliance support, employee assistance programs, and career transition services.