If after considering alternative employment solutions, redundancy appears to be the only way forward, the redundant staff must be selected carefully and fairly. A redundancy pool is usually not relevant in small and micro businesses, as employees often perform their roles individually so there is no element of selection among employees performing similar roles.
Once the selection is made, you should advise all potentially affected staff that they are at risk of redundancy. You should send them an At-risk of redundancy letter. This letter does not need to be used when making just one employee redundant who is in a unique role.
Even in small or micro-businesses, you are legally required to consult each employee individually who is at risk of redundancy. You should inform your staff about this consultation using a Redundancy consultation letter. The letter can be used as the first step in the redundancy process when you are making just one employee redundant with no pooling. A redundancy pool (also known as ‘pooling’) is a group of employees from which redundant staff will be selected.
A one-to-one consultation will help managers find alternative employment options and shows a continued effort to keep the employee informed of the situation.
Once consultations are completed, you need to inform staff that they are being made redundant. You should first inform the employee through a formal meeting, then confirm it in writing using a Dismissal for redundancy letter.
Throughout the redundancy process, employers will collect data that comes within the 'special categories of personal data' (ie sensitive personal data) about employees who are at risk of redundancy. You must ensure that the information is processed in accordance with your Data protection policy and employee privacy notice - a statement describing how you collect, use, retain and disclose personal information.