When a business needs fewer roles, deciding who may be affected is often the most sensitive part of the process. A genuine business case is the starting point, but the selection pool, criteria and search for other work also need to be fair. Discuss your proposals with affected employees before final decisions are made.

Decide Which Roles and Employees Belong in the Pool

Start with the work that is reducing, not a preferred outcome for a particular person. If several employees do the same or similar work, they may need to be considered together. Sometimes one genuinely distinct role is disappearing and a pool of one is appropriate, but the reasons should be clear and open to challenge during consultation.

Consider whether employees elsewhere do interchangeable work and whether your approach is consistent with the future structure.

Choose and Test the Redundancy Selection Criteria

Criteria should relate to what the business will need and be capable of being assessed from evidence. Skills, qualifications and relevant performance may be useful; avoid relying on vague impressions. Agree who will score, check the evidence behind each score and allow employees to correct mistakes.

Review absence or other measures that could disadvantage employees because of disability, pregnancy or protected leave. Do not use redundancy as a route around a performance or disciplinary process.

Keep Looking for Other Roles

Search for available jobs throughout consultation and notice. Discuss potential roles with employees and assess suitability using the work, terms, pay, location and the person’s skills and circumstances. Where a suitable vacancy exists, offer it rather than expecting the employee simply to discover and apply for it. If several at-risk employees are interested, use a fair approach to decide who is most suitable.

Priority for pregnant employees and new parents

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 and implementing regulations extended the protected periods for pregnancy, maternity, adoption and qualifying shared parental leave. Eligible employees have priority for suitable alternative vacancies over employees without that protection.

This does not exempt them from fair selection for existing roles. Check each employee’s protected period and any other applicable family-leave protection. If there are fewer suitable vacancies than protected employees, use a fair assessment to decide who is most suitable.

The trial period

An employee who accepts an alternative role normally has a four-week statutory trial period. A longer period for retraining must be agreed in writing before the trial begins.

If the role is unsuitable for the employee, they may still be entitled to redundancy pay. Do not assume a refusal is unreasonable without considering their reasons.

Record the Decision and Offer an Appeal

Keep a clear record of the pool, criteria, scores, consultation responses, vacancies considered and reasons for the final decision. Explain the result in writing and offer a way to appeal.

A well-documented decision helps the employee understand what happened and helps you check that the process was consistent.