How to Start the Redundancy Process

Redundancy is a difficult, but sometimes necessary process, and we often hear employers say that they don’t know the best way to approach it. From the selection process at the beginning through to the communication and execution of it, there are many things you should know as an employer to help make the process as smooth as possible.

Steps of redundancy

Having a clear step by step process can help to ensure a fair redundancy process. This will help you to avoid potential complaints and legal action being taken against you which could prevent damage to your business’s reputation and save you any costs of claims through employment tribunals. 

Below are several steps for the redundancy process:

1. Establish a reason as to why you need to make a role redundant.
2. Choosing a redundant role.
3. Clearly lay out the process you are using to select the role being made redundant.
4. Speak to and consider the employees in the role.
5. Choose a set of reasonable selection criteria to score several employees who have the same or a similar role.
6. Make the role redundant – including dismissing the individual who is in the role on the grounds of redundancy or dismissing the person who scored lowest against your selected criteria.
7. Prepare for an appeal - just in case.

What could make a redundancy unfair?

Redundancy may be considered unfair if an employer doesn’t take the time to speak with the employees at risk of redundancy. As well as this, it must be ensured that employees are given the opportunity to ask questions and speak about the redundancy with their employer, or are offered alternatives to dismissal. Additionally, the employee has a right to know why they were chosen to be dismissed by reason of redundancy. If the employer refuses to share this information or can’t give a reasonable answer, the dismissal could be seen as unfair.

5 things to know before starting the redundancy process

1. You must make sure that when you consider redundancy, you are looking at a group or team of people in the same or similar roles rather than looking at individuals.
2. If you are making multiple people redundant at the same time, get advice from a solicitor about the collective redundancy process.
3. Be transparent, clear, and sympathetic in your approach to the entirety of the redundancy process.
4. Always consider alternative options for the employees who may potentially be being made redundant and speak with them and other staff members to see if they could fit elsewhere in your business.
5. You must provide a confirmation letter confirming the dismissal by reason of redundancy and this must contain their right to appeal.

How can we help?

Getting in touch with a solicitor early on in the process can not only mitigate the risk but will also ensure that the process is fair, and help you to avoid any costly claims. 

Our Employment Law team can help you to ensure that you follow the correct redundancy procedure to minimise the chance of appeals or disputes. 

Furthermore, if you find yourself facing an unfair dismissal claim, we are experienced in helping employers with these cases and getting you a satisfactory outcome. 

We can also help with the drafting of the redundancy confirmation letter including the right to appeal section.

For more information or for advice on the redundancy process, contact our Employment Law specialist Katie Bowen Nicholas at katie.bowennicholas@hegarty.co.uk