Redundancy: Conduct a redundancy process

When to use this workflow

Use this workflow where a business or workplace is closing, or there is a diminished need for employees to carry out work of a particular kind.

While redundancy is a potentially fair reason for dismissal, for a redundancy dismissal to be fair, there must be a genuine redundancy situation and the employer must follow a fair procedure in carrying out the dismissal, including consulting on an individual basis. The employer must also comply with its collective consultation obligations where these apply.

This workflow is an example of a legally compliant process. Where your organisation's own procedures go beyond the procedure set out in this workflow, you should follow these.

Note: The redundancy pay calculator in this workflow can now be used to calculate enhanced redundancy payments that match the criteria set out in the age discrimination legislation as well as statutory redundancy payments. Watch our short video to learn how to use the calculator.

Workflow authors: Produced by the XpertHR editorial team with the assistance of Claire Perry.

Key Steps

  • Identify which employees are affected and determine the selection pool
  • Determine the redundancy selection criteria
  • Ascertain if collective redundancy consultation is necessary
  • Hold individual consultation meetings
  • Calculate the redundant employees’ redundancy pay

Key "What if?" Events

  • What if? … once notice of redundancy has been given the employer needs to retract it
  • What if? … a potentially redundant employee is pregnant or on maternity leave
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