Managing redundancies can be one of the toughest parts of running a business. It’s a process charged with legal, financial, and emotional implications, leaving you balancing your obligations and compassion towards your team.
This guide breaks down the individual redundancy process when less than 20 roles are affected. We cover each stage so you can create a plan to manage this sensitive topic fairly and effectively.
Want to check your plan is legally compliant? Our friendly employment solicitors are ready to help. From drafting correct documentation to advising on timelines and preventing potential legal disputes, we’ll help you protect both your business and your people. Learn more about our reorganisation and redundancy support for employers.
Contents:
- What is the redundancy process for 1-19 people?
- Initial individual redundancy consultation meeting or announcement
- Confirm in writing
- Arrange first individual consultation meeting with ‘at risk’ employees
- Pausing the redundancy process
- Apply selection criteria
- Arrange a second consultation meeting with employees to discuss if they have been selected for redundancy
- Final dismissal meeting
- Confirm dismissal in writing
- Appeal meeting
- Settlement agreement
- Summary
What is the redundancy process for 1-19 people?
Whilst there is no statutory process required to be followed for individual redundancies, it’s crucial that you check your employee’s contracts of employment and your redundancy policy. Any redundancy process or guidelines as to how redundancy will be carried out by your business, set out in those documents, should be followed.
If you don’t have a redundancy policy or guidance in your employee contracts, the best practice< to minimise risk of unfair dismissal claims would include the following steps:
Initial individual redundancy consultation meeting or announcement
This would typically be a meeting in person or online with all 'at risk’ and ‘affected’ employees. Affected employees include those who may be impacted by proposed changes but are not directly at risk of redundancy themselves.
Confirm in writing
A short letter or email should then be sent confirming the content of the initial meeting and providing the contact details of the individual or team coordinating the redundancy process in case staff have any initial questions.
Arrange first individual consultation meeting with ‘at risk’ employees
This is an opportunity to provide further detail on:
- Why that particular employee has been included in the pool of at risk employees
- Updated timelines relating to the redundancy process
- What the redundancy package will look like
- Deadlines for making applications for voluntary redundancies
- How and when employees will have the opportunity to ask questions and give opinions on ways to avoid redundancies, the proposed pool, selection criteria and feedback on scoring
Minutes of meetings should be recorded in writing and sent to employees as soon as possible after the meeting and accurately reflect everything discussed. Preferably you should seek confirmation in writing from the employee that the minutes are accurate.
Pausing the redundancy process
At this stage, you may decide to pause the redundancy process to explore voluntary redundancies, alternative employment options, or other ways to avoid redundancies. This pause could help reduce or eliminate the need for compulsory redundancies—for example, if enough employees volunteer for redundancy or if alternative arrangements, such as job sharing or reduced hours, are agreed upon.
A pause in the process may also be helpful if there are particular issues raised with the pool or selection criteria or if there are questions which require a longer response or other suggestions to thoroughly consider. If needed, there should be further individual consultation meetings to discuss and document any additional considerations.
Apply selection criteria
Once initial considerations have been dealt with, and if compulsory redundancies are still required, the next step is to score the at risk employees against the selection criteria. The selection criteria will ideally have been agreed in advance and must be fair and applied in a consistent and non-discriminatory manner.
Arrange a second consultation meeting with employees to discuss if they have been selected for redundancy
Another individual meeting should be held with employees to explain the outcome of the selection process. If employees have not been selected for redundancy, this should be made clear and confirmed in writing. If an employee has been selected for redundancy, this should be handled sensitively, and the employee should be allowed to challenge their selection. You will want to reflect on the redundancy process up to this point, including looking again at whether there is alternative employment available in your business. If there is nothing further to consider or resolve, you will need to outline the following to the selected employees:
- the redundancy payment calculation
- how and when notice will be given to terminate the employee’s contract
- the right the employee has to paid and unpaid time off to look for alternative employment outside of your business, whilst you continue to search for alternatives within the business until their end date of employment
This final consultation meeting is an opportunity for you to summarise the redundancy process and the decisions you have made and answer any unresolved questions the employee has.
Final dismissal meeting
There will then usually follow a final, short, formal meeting where, if no alternatives to redundancy have been found and if any grievances have been resolved, an employee’s dismissal will be confirmed. It is wise to allow the employee the option of being accompanied at the meeting by a Trade Union Representative or colleague, in the same way as they might in the case of a grievance or disciplinary meeting. Again, minutes of the meeting should be taken and circulated after the meeting, preferably for agreement by the employee. Final details of the redundancy such as the employee’s notice, whether this will be served at work, on garden leave or paid in lieu, pay that will be received and the timings involved, should be confirmed to the employee. The employee should be allowed to again raise any final questions they may have.
Confirm dismissal in writing
As soon as possible after the final meeting, the employee should be issued with a letter confirming:
- their notice period
- the date their employment will end
- the redundancy payment they will receive and how it has been calculatedadditional pay they will receive and when the payments will be made
- the employee’s right to appeal their dismissal and how they can exercise that right
An employee’s right to appeal against their dismissal is separate from the redundancy process but should form part of your redundancy procedure or your business’ dismissal procedure.
Appeal meeting
If an employee has chosen to appeal their dismissal, a meeting should be held promptly, following your business’s procedure. Although not required for redundancy, if you act using the ACAS Code of Practice on Disciplinary and Grievance Procedures, it will be a good guide on best practice and mean less risk of liability for unfair dismissal. Employees should be given the option to be accompanied to the appeal meeting by a colleague or Trade Union Representative. Confirmation of your decision on the appeal should be provided in writing within a reasonable period, again, in line with any redundancy procedure your business has in place.
Settlement agreement
You may consider a settlement agreement as an option, not only for voluntary redundancies, but for compulsory redundancies, as an alternative to running a complete redundancy process or if there is a complaint by the employee or potential claims for settlement. If you are considering this option, it is advisable to seek legal advice first, to assess your potential liability and ensure this is carefully managed and does not lead to a claim for constructive unfair dismissal. Our employment lawyers are highly experienced in this area and would be happy to discuss your business’ specific requirements with you.
Summary
As we have already discussed, there is no statutory process for individual redundancies, but as an employer you must ensure fairness to avoid claims such as unfair dismissal or breach of contract. If a contractual redundancy policy exists, it must be followed to prevent legal risks. Even without a written policy, you should demonstrate that redundancies are for a fair reason, dismissals are handled fairly, and decisions are reasonable. A structured process with meaningful individual consultation - and properly documented - helps ensure fairness and reduces the risk of disputes. Without a clear process, achieving consistency in redundancy decisions becomes more challenging.
Having a well-defined redundancy process from the outset can save time and reduce legal risks. Clear communication, employee involvement in selection criteria, opportunities for feedback, and the right to be accompanied at meetings help minimise unfairness and the risk of grievances or tribunal claims. While following a redundancy process is not legally required, failing to do so increases the likelihood of disputes. If you need to establish or update your redundancy procedure or require guidance on managing an individual redundancy process, our expert employment solicitors can assist.
