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FAQs about making redundancies
Redundancy is one of the fair and lawful reasons to dismiss an employee, but it comes with strict legal requirements. It applies where an employer:
ceases operations entirely or in the location where the employee works
reduces the workforce or no longer needs employees to perform certain types of work
Handled incorrectly, redundancy can lead to costly claims and reputational damage. With the right approach, however, you can ensure fairness, compliance, and business continuity.
Redundancy involves multiple steps, which vary depending on the size of your business and the number of employees affected. To stay compliant and avoid disputes, you must:
notify employees early of the risk of redundancy
conduct fair consultations with all affected staff
pay any owed salary and untaken holiday
Failure to follow these steps could result in Employment Tribunal claims.
For more information, read Redundancy.
Whether you run a small business or manage a large-scale redundancy, we can guide you through the process.
For businesses with fewer than 50 employees and a turnover below £10 million, redundancy steps include:
fair staff selection - identify roles fairly and without bias
communication - inform all affected employees of the risk of redundancy
consultation - a 1-on-1 discussion with each employee
formal notice - issue redundancy notices clearly and on time
For more information, read How to make someone redundant in a small business.
For larger redundancies (20+ employees within 90 days), additional legal requirements apply, such as:
notifying the Redundancy Payments Service before starting consultations
consulting with trade unions or elected employee representatives
At Rocket Lawyer, our solicitors specialise in making redundancy as straightforward and compliant as possible. We’ll help you:
stay compliant with redundancy laws to minimise risk
review your redundancy policies to ensure they are up to date
navigate the process confidently, step by step
Our Redundancy Support Package includes:
policy review - our Legal Pros will assess your redundancy policies (if applicable)
personalised consultation - a call with an expert to map out the best approach for your business
additional support - need further help implementing redundancy? Our Legal Pros will provide a tailored quote for ongoing assistance
Don’t leave redundancy to chance. Protect your business with expert advice today.
Ready to navigate redundancy with confidence? Contact us now to speak to a solicitor and ensure your redundancy process is fair, legal, and stress-free.