This section includes the policy, procedures and letters that will be needed if an employer is planning to dismiss some or all of their employees by reason of redundancy. Potentially, redundancy is a fair reason for dismissing an employee but only if a full and fair consultation process is carried out and the reason for the redundancy dismissal is the closure of a business or workplace or a reduced need for employees to carry out work of a particular type.
There is also a range of documents to be used when an employer decides to offer voluntary redundancy to employees as an alternative to compulsory redundancy. There is no legal requirement for employers to offer voluntary redundancy but it is good practice to do so as it may provide a way of avoiding, or at least reducing, the need for compulsory redundancies.
Adequate time must be allowed for consultation on the redundancy plans and this will be at least:
• 30 days before the first redundancy where there are 20 to 99 proposed redundancies; and
• 45 days (reduced from 90 days as of 6 April 2013) before the first redundancy where there are 100 or more proposed redundancies.
Where there are fewer than 20 proposed redundancies, the consultation period is not specified but employers should allow about two weeks.
Consultations should be with a view to avoiding redundancies or minimising their impact.
In any redundancy situation, employers must consult with individual employees. In addition, employers must consult with trade union or elected employee representatives if more than 20 employees are affected within a 90-day period. This is known as collective consultation.
Lay-offs and short-time working can be considered as a temporary alternative to redundancy.
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Frequently Asked Questions
What documents do I need to manage a redundancy process from start to finish? +
You need documents covering every stage: a redundancy policy and procedure, a business-case record, letters to inform and consult employees, a selection matrix, notices of redundancy, appeal documents and, where relevant, alternative-employment letters. This sub-folder provides all of these as separate templates, including a Redundancy Procedure and Checklist to guide you through the correct order of steps. Redundancy is a potentially fair reason for dismissal only if a full and fair consultation is carried out and a genuine business reason exists, so a complete set of matched documents reduces the risk of an unfair-dismissal claim.
How long must I consult before making employees redundant? +
The minimum period depends on how many redundancies you propose at one establishment within a 90-day period. For 20 to 99, collective consultation must begin at least 30 days before the first dismissal takes effect; for 100 or more, the minimum is 45 days. For fewer than 20 there is no fixed minimum, but Acas recommends around two weeks. Individual consultation is required in every redundancy situation regardless of numbers, and consultation must be meaningful and aimed at avoiding or reducing redundancies. This sub-folder includes Redundancy Consultation Letters, collective-consultation representative-election letters and a Second Redundancy Consultation Letter.
When must I notify the government of proposed redundancies and how do I do it? +
If you propose to dismiss 20 or more employees as redundant at one establishment within a 90-day period, you must notify the Redundancy Payments Service on form HR1 before consultation begins, at least 30 days ahead for 20 to 99 redundancies and 45 days for 100 or more. Since 1 December 2025 the HR1 must be submitted digitally via GOV.UK, and a copy given to employee representatives. Failure to notify is a criminal offence carrying an unlimited fine. This sub-folder supports the process with collective-consultation letters, representative-election letters and a Redundancy Procedure and Checklist.
How do I select employees for redundancy fairly and reduce the risk of an unfair-dismissal claim? +
Define a selection pool of employees doing the same or similar work, then apply objective, measurable criteria consistently across everyone in that pool. Typical criteria include skills, qualifications, performance records and attendance (excluding disability-related absences). Criteria must not directly or indirectly discriminate against employees with protected characteristics under the Equality Act 2010, and sole reliance on last in, first out can amount to indirect age discrimination. To evidence a defensible process, this sub-folder includes a Redundancy Selection Matrix to score employees consistently, Sample Possible Redundancy Reasons to support the business case and Guidance Notes on alternative roles.
Should I offer voluntary redundancy before making compulsory redundancies? +
There is no legal requirement to offer voluntary redundancy, but it is strongly recommended as good practice, because inviting volunteers can reduce or avoid compulsory dismissals and shows you have genuinely considered ways to minimise redundancies. Note that volunteers still count towards the collective-consultation threshold: if 20 or more employees are proposed for redundancy within 90 days, collective consultation is required even if some volunteers come forward. This sub-folder includes a Voluntary Redundancy Policy, invitation letters, an application form, outcome letters, a voluntary redundancy agreement and a Letter Setting Out the Terms of a Voluntary Redundancy Agreement.
What happens if I make an employee redundant who is pregnant or recently returned from maternity or family leave? +
Since 6 April 2024, employees who have notified pregnancy, or recently returned from maternity, adoption or shared parental leave of six or more weeks, must be offered any suitable alternative vacancy as a priority before their role ends. This protection runs from notification until 18 months after the child's birth (where maternity leave has been taken). Failing to offer priority access can make the dismissal automatically unfair without two years' service. Use the Letter Offering Suitable Alternative Employment to an Employee Who is Made Redundant While on Family Leave.
I have offered an employee an alternative role. What are the rules on a trial period and what documents do I need? +
Employees have a statutory right to a four-week trial period in any alternative role where the terms differ from their original contract. The trial begins when the old contract ends, and the alternative role must start within four weeks of the original employment ending. If the employee finds the role unsuitable during the trial, they must notify you before it expires or they will normally lose their right to statutory redundancy pay. Any extension for retraining must be agreed in writing before the trial starts. To document each outcome, use the Alternative Employment Offer Letter, the Alternative Employment Successful Trial Period Letter and the Alternative Employment Unsuccessful Trial Period Letter.
