How to Plan and Manage Redundancies Thoughtfully and Lawfully

Here’s our comprehensive guide to help you approach redundancies with sensitivity and compliance.

1. Confirm Your Reason for Redundancy

It’s important to remember that redundancy is about the role, not the individual. Before making any decisions, ensure your reason for redundancy is clear and valid. Common reasons include:

• Business closure or downsizing
• Changes in the types or numbers of roles required
• Relocation of the business

These reasons must be genuine, transparent, and clearly communicated to those impacted. Unclear motives can lead to misunderstandings and even legal claims.

2. Plan Thoroughly Before Acting

Planning is crucial in managing redundancies effectively. Consider all alternative options first, such as redeployment, reducing overtime, or letting go of temporary workers. If redundancy remains the only solution, create a detailed plan that includes:

• The anticipated number of redundancies
• The business rationale and any alternatives considered
• A timeline for the redundancy process
• Selection criteria and scoring systems
• Statutory or contractual pay and notice periods

A well-structured plan is key to a fair and transparent process, helping affected employees understand the decision-making process and reducing confusion or frustration.

3. Inform and Consult

Consulting with employees before finalising decisions is both a legal requirement and a fundamental step in the redundancy process. This should be a genuine, meaningful dialogue, offering employees a chance to voice concerns and suggestions.

For 20 or more redundancies, a collective consultation process must be followed, including:

• Engaging employee representatives early
• Providing required information and documentation
• Adhering to collective consultation timelines to avoid claims of unfair dismissal

Maintaining transparency and inclusivity during consultation helps to reduce employee anxiety and maintains trust.

4. Use Objective Selection Criteria

Choosing whom to make redundant is a sensitive task. To protect your business, ensure that selection criteria are:

• Transparent and non-discriminatory
• Based on objective factors, such as skills, qualifications, and performance
• Clearly communicated to affected employees

An objective, fair selection process minimises the risk of legal claims related to bias or unfair dismissal.

5. Support and Communication

Meeting legal requirements is only one part of managing redundancies; empathy and support are equally important. Effective communication throughout the process impacts how redundancies are perceived by both affected employees and those remaining in the business.

Consider offering:

• Career counselling or job search assistance
• Open, honest explanations for the redundancies
• Consistent communication to maintain trust and morale

Providing support during this difficult time can make a meaningful difference to those affected and reassure remaining staff of the company’s commitment to fair treatment.

6. Get Professional HR Support

Redundancies are complex, involving multiple legal and emotional considerations. Seeking guidance from an HR consultant can help you navigate this process with confidence, ensuring compliance with legal standards, reducing the risk of unfair dismissal claims, and supporting a fair, empathetic approach.

Partnering with an experienced HR consultant allows you to manage redundancies effectively while keeping your business running smoothly.

For advice and support tailored to your needs, get in touch with us for a confidential chat today.

You can call us directly on 01243 – 967961 or email [email protected]