Frequently asked questions about redundancy and the redundancy process
Below, we answer some frequently asked questions about redundancy, from an employer’s perspective. If you find yourself in a position where redundancy is a potential consideration for your business, we strongly advise seeking professional HR support to ensure you follow the procedure correctly.
What counts as a genuine redundancy?
It may arise when a business or workplace closes, or the need for employees to do work of a particular kind reduces or ends. Explain the change in work or roles. Redundancy is not a way to dismiss someone for poor performance.
Do I need to consult if only one employee is at risk?
Yes. Hold genuine individual consultation before making a final decision. Provide a written proposal and, in most cases, hold at least two meetings to explain it and hear feedback. Discuss alternatives, the pool if relevant and suitable other work.
When is collective consultation required?
The current threshold is a proposal for 20 or more redundancies at one establishment within 90 days. The employer must consult appropriate representatives and notify the Redundancy Payments Service. The minimum lead time before the first dismissal is 30 days for 20–99 proposed redundancies and 45 days for 100 or more.
How long does individual consultation take?
There is no fixed statutory minimum duration or number of meetings. In most cases, we recommend at least two meetings: first to explain the proposal, then to hear feedback and explore alternatives. Allow time between them and further meetings where needed. Follow any longer period in your policy or agreement.
Can I select an employee because of performance?
Redundancy must be based on a genuine reduction in the need for work, not a disguised performance dismissal. Where a fair selection between employees is needed, relevant performance evidence may form part of objective criteria. Apply it consistently and avoid discrimination.
What if an employee is pregnant, on family leave or off sick?
They can be affected by a genuine redundancy proposal, but you must include them fairly in consultation and avoid discriminatory criteria. Some pregnant employees and new parents have priority for suitable alternative vacancies during a protected period. Make appropriate adjustments for anyone on sick leave or with a disability.
How much statutory redundancy pay is due?
Eligible employees normally need at least two years’ continuous service. The formula uses age during each full year, up to 20 years’ service, and weekly pay subject to the limit applicable on the redundancy date. For redundancies from 6 April 2026, the weekly cap is £751 and the maximum statutory payment is £22,530.
Are notice and holiday pay included in redundancy pay?
No. Calculate contractual or statutory notice pay and accrued unused holiday separately. Check whether an enhanced redundancy scheme also applies, and give the employee a written breakdown.
Can an employee refuse a different role?
Yes, but an unreasonable refusal of suitable alternative employment can affect statutory redundancy pay. Suitability depends on the job and the employee’s circumstances. A statutory four-week trial normally applies if the employee accepts the role.
Do employees have the right to appeal?
Employers should offer an appeal if an employee believes the selection or process was unfair. Arrange an impartial review and explain the decision.
How can we help you?
Hopefully our redundancy FAQs will give you a running head start, however, if you need further advice, Pure Human Resources are a team of experienced HR consultants who can guide you through the redundancy process. We can help ensure you are compliant with your obligations as an employer and support you through what can be a very challenging time. You can request a copy of our Guide to Redundancy here.
If you would like to talk to somebody about redundancy issues, contact us using the form below to request a callback.
