How To Make A Role Redundant Fairly UK

Get the redundancy process wrong and a tribunal can award up to a year's pay plus uplift for procedural failings. Get it right and you protect both the business and the affected staff.

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The Steps

1
Establish the genuine redundancy reason
Workplace closure, role no longer needed, or fewer people needed for that work. Document the business case.
2
Identify the selection pool
All employees doing the same or similar work. Be objective. Ring-fencing the pool to one person is a red flag for tribunals.
3
Apply objective selection criteria
Skills, qualifications, attendance (excluding pregnancy/disability-related absence), disciplinary record, performance ratings. Score each candidate.
4
Hold individual consultation meetings
At least 2 meetings per affected employee. Discuss the proposal, alternatives, suitable alternative employment, voluntary redundancy options.
5
Issue at-risk and outcome letters
At-risk letter triggers consultation. Outcome letter confirms selection or alternative role. Always in writing.
6
Calculate redundancy pay
Statutory minimum for 2+ years service: half a week's pay for each year under 22, one week's pay for each year aged 22 to 40, one and a half weeks for each year aged 41+. Capped at 20 years and statutory weekly cap.
7
Offer right of appeal
Final step. Heard by an uninvolved manager. Appeal outcome is final.