Redundancies

Redundancies are not to be undertaken lightly.

The legally permissible reasons why a business may choose to make its employee redundant are:

1. The business, or the part of the business, is closing down - This includes complete closure or shutting down a particular site or department.

2. The need for employees to carry out work of a particular kind has diminished or ceased - For example, due to technological changes, outsourcing, or reduced demand for certain products or services.

3. The requirements for employees to carry out work of a particular kind have changed - This can include restructuring or reorganising the business where the roles or skills needed are different.

Businesses must be able to evidence one or more of the above reasons which must be genuine.  The redundancy process must then follow a fair and lawful procedure to avoid claims of unfair dismissal and financial risk to the business as compensation awards 

Effective April 6th, 2026, UK employment law updates included the doubling of the maximum protective award for collective redundancy failures from 90 days’ pay to 180 days’ pay per affected employee where 20 or more redundancies are proposed at one establishment within 90 days. This significantly increases the financial risk for employers who do not follow proper collective redundancy consultation rules.

While the eligibility criteria for redundancy itself have not changed, these reforms heighten the importance of strictly adhering to fair and lawful redundancy procedures, updating policies, and training managers accordingly to mitigate legal risk. 

Redundancy: Step-by-Step Guide for Businesses

• Identify and document the genuine business reason for redundancy.

• Plan the redundancy process carefully, including timelines and affected roles.

• Inform and consult with affected employees individually.

• If 20 or more redundancies are proposed within 90 days at one establishment, start collective consultation with employee representatives or trade unions.

• Consider alternatives to redundancy, such as redeployment, job sharing or reduced hours.

• Use fair and objective selection criteria if selecting employees for redundancy. 

• Scoring objectively to select employees fairly where multiple redundancies exist within the same role (the role title doesn’t necessarily have to be the same and pooling will apply where the roles ‘broadly’ perform the same tasks).

• Provide appropriate notice periods and redundancy pay as per statutory or contractual entitlements.

• Conduct individual consultation meetings to discuss the redundancy and listen to employee feedback and proposals to mitigate redundancies.

• Issue formal redundancy notices in writing.

• Support employees with outplacement, career advice, or wellbeing resources where possible.

• Keep clear records of the redundancy process and decisions.

• Comply with all legal requirements to avoid claims of unfair dismissal or discrimination.

How Amicus People can help: 

This is not a process to be undertaken without expert guidance.  We can manage the full end to end redundancy process for your business, ensuring full confidentiality, management of internal and external communications, legal compliance, fairness and minimal organisational disruption. 

Whether it’s just 1, or 20+ roles that you are considering making redundant, our support helps you navigate this sensitive process with clarity and care and thus mitigating risk to your business should you be subject to an employment tribunal claim.

Get in touch today!