Redundancy Support for Employers
Practical guidance and experienced HR support, from the first proposal to the final conversation.
A Guide to the Redundancy Process for Employers
Redundancy is one of the hardest changes a business can make. You may need to reduce costs, respond to the loss of work or reshape the roles your organisation needs. Whatever the reason, the decision affects people as well as the future of the business. A clear, fair process gives you the best chance of finding alternatives, treating employees well and moving forward with confidence.
Pure Human Resources can support an individual redundancy proposal or a wider programme. Our HR consultants help employers plan, consult, assess options, make decisions and communicate with care. We can work alongside your existing HR team or provide the expertise you need for a one-off project.
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What Is Redundancy?
A genuine redundancy situation may arise when a business closes, a workplace closes or the need for employees to do work of a particular kind reduces or ends. The role or requirement for work is changing; redundancy should not be used to deal with an individual performance problem. A business sale or change of ownership is not, by itself, a reason to make someone redundant. If a transfer is involved, TUPE may also apply.
Even where the business reason is sound, the dismissal can be unfair if selection or consultation is mishandled. Start with the work the business will need, the roles affected and the alternatives you have considered. Do not begin by deciding which individual should leave.
Where Should You Start?
One role may be at risk
You still need a genuine, meaningful individual consultation. Prepare a written proposal and, in most cases, plan at least two consultation meetings. Check whether the role is genuinely unique or whether other employees doing similar work should be considered in a selection pool.
Several roles may be at risk
Plan the proposal, pools, criteria, meetings and communications together. If you propose 20 or more redundancies at one establishment within 90 days, collective consultation and government notification rules apply.
You need to estimate costs
Use the statutory redundancy pay ready reckoner as a starting point, then check notice, accrued holiday and any contractual or enhanced payments separately.
The Employer Redundancy Process Step by Step
Confirm the business case and consider alternatives
Be able to explain what is changing and why fewer or different roles may be needed. Consider options such as reducing overtime, reviewing vacancies and recruitment, redeployment, voluntary redundancy or changes to working arrangements where appropriate. Record what you considered and remain open to employee suggestions during consultation.
Plan the right process
Check your redundancy policy, contracts and any collective agreement. Identify the proposed roles and employees affected, the possible selection pools, the decision makers, the information employees will need and a realistic timetable. Include employees who are away from work. Count proposed redundancies across the relevant 90-day period and establishment before assuming collective consultation does not apply.
Explain the proposal and consult
Prepare a written consultation document setting out the business rationale, proposed changes, roles and numbers affected, any proposed selection pools and criteria, alternatives already considered, and the proposed timescales and next steps. Explain how employees can ask questions and submit suggestions. Share it at the outset and make clear that this is a proposal, not a final decision.
In most cases, we recommend at least two individual consultation meetings: the first to explain and confirm the proposal, and the second to hear the employee’s feedback and explore ways to avoid or reduce redundancy. Allow time between meetings to consider the information and prepare suggestions. Hold further meetings where needed, consider and respond to proposals, and keep notes. There is no set statutory length or number of meetings for individual consultation; it must be meaningful. Consider allowing a companion.
Follow collective rules if they apply
If you propose 20 or more redundancies at one establishment within 90 days, consult the recognised trade union or appropriate employee representatives and notify the Redundancy Payments Service using form HR1. Consultation must start at least 30 days before the first dismissal for 20–99 proposed redundancies, or 45 days for 100 or more. The notice to government has the same minimum lead times. Individual consultation is still needed alongside the collective process.
Select fairly
Define the selection pool for the work that is reducing and use fair, relevant criteria where a choice between employees is needed. Make decisions from reliable evidence, apply the approach consistently and give employees a chance to challenge their scores or the pool. Avoid criteria that disadvantage people because of disability, pregnancy, family leave or another protected characteristic.
Look for suitable alternative employment
Review vacancies throughout the process, including in associated organisations where relevant. If a suitable role is available, offer it rather than moving straight to dismissal.
The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 and implementing regulations extended priority for suitable alternative vacancies to pregnancy and periods after maternity, adoption and qualifying shared parental leave. This is priority for an available suitable vacancy, not a blanket exemption from redundancy. Pregnancy protection starts when the employer is notified; maternity protection normally runs until 18 months after birth. Adoption and qualifying shared parental leave also have extended protected periods. Check the dates and applicable rules for each employee. Where this protection applies, offer a suitable vacancy as a priority rather than requiring the employee to compete with colleagues who do not have that protection.
Employees who accept an alternative job usually have a statutory four-week trial period. Suitability and any refusal must be assessed in the circumstances of the person and role.
Make the decision and confirm payments
Only issue notice after consultation has genuinely finished and the decision has been made. Explain the reason, leaving date, notice arrangements, statutory or enhanced redundancy pay, accrued holiday and the appeal route in writing. Employees with at least two years’ continuous service will normally qualify for statutory redundancy pay, subject to the applicable rules. Redundancy pay and notice pay are separate.
Offer an appeal and support the transition
Provide a route to challenge the selection or process. Consider outplacement, job-search support and reasonable time off for eligible employees to find work or arrange training. Keep managers and remaining employees informed about the future structure without compromising anyone’s privacy.
What Changes When 20 or More Redundancies Are Proposed?
Collective consultation is more than holding a larger number of meetings. You must consult appropriate representatives with a view to reaching agreement about ways of avoiding dismissals, reducing numbers and mitigating their effects. You must give prescribed information in writing, allow time for representatives to respond and make the HR1 notification. Voluntary redundancies and employees who may be redeployed can still count towards the number initially proposed.
Law change
Failing to collectively consult can lead to a protective award of up to 180 days’ full pay for each affected employee for dismissals from 6 April 2026. Failure to notify the government is a separate offence.
If you are close to the threshold, or the meaning of an establishment is unclear, get advice before fixing the timetable. See the full collective consultation guide
How Is Statutory Redundancy Pay Calculated?
Statutory redundancy pay depends on age during each complete year of service, length of continuous service and weekly pay. The usual entitlement is:
Half a week’s pay for each full year under age 22
One week’s pay for each full year from age 22 to 40
One and a half weeks’ pay for each full year from age 41
No more than 20 years’ service can count.
For redundancies on or after 6 April 2026, the statutory weekly pay cap is £751 and the maximum statutory payment is £22,530. These limits change from time to time, so check the date that applies.
The Pure HR ready reckoner helps you estimate the number of weeks’ pay; apply the correct capped weekly pay and check individual circumstances. The figure does not include notice, holiday or any contractual enhancement.
Manage the People Side with Care
Employees need to know what is proposed, what has not yet been decided and when they will hear more. Explain the business reason without implying that an individual is to blame. Give managers time to prepare for difficult conversations, make room for questions and keep support available to employees who may leave and those who remain.
Practical help can include an employee assistance programme, outplacement, CV and interview support, and a considerate handover. Communication that is honest and timely helps protect trust even where the outcome is difficult.
Read our compassionate redundancy article
Questions Employers Ask Us
Can I make just one employee redundant?
Yes, if there is a genuine redundancy situation. You still need a fair process, including a sensible pool decision and individual consultation before the final decision.
Is there a minimum individual consultation period?
There is no fixed statutory number of days or meetings for fewer than 20 proposed redundancies. In most cases, we recommend at least two individual meetings, with time between them for employees to consider the proposal and suggest alternatives. More meetings may be needed for meaningful consultation.
Can someone on maternity or sick leave be included?
Yes, if a genuine proposal affects their role, but the process must not discriminate. Include absent employees in consultation, make appropriate adjustments and check the special priority for suitable alternative vacancies that applies to some pregnant employees and new parents.
Can I use performance to choose who leaves?
Redundancy is not a substitute for performance management. Where selection is needed, relevant performance evidence can form part of fair, measurable criteria, applied consistently and without discrimination.
Does the calculator tell me the total cost?
No. The ready reckoner estimates statutory redundancy weeks’ pay. Check notice, holiday, contractual terms and any additional support or payments separately.
View all employer redundancy FAQs
How Pure HR Can Help
We can review whether redundancy is the right route, shape the proposal, check pools and selection criteria, support individual or collective consultation, prepare communications and outcome letters, calculate entitlements and help managers handle the conversations. Our support can be a focused project, pay-as-you-go advice or part of an ongoing retained relationship.
If you are still exploring options, contact us before announcing a decision. If a process is already under way, we can help you work through the next stage. Tell us what is changing, how many roles may be affected and your proposed timescale.
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Pure® Human Resources are a team of experienced HR consultants based in North Baddesley, Southampton. We offer HR, recruitment and training services across Hampshire, Dorset, Wiltshire, Berkshire, Surrey and Sussex as well as having clients at a national level.
