Step 2: Follow the right process
If you do decide redundancies are necessary, you should check if you have:
- a redundancy policy you must follow
- a collective agreement with a trade union with details of what you must do
You must follow a fair redundancy process. This should include consulting staff.
You must collectively consult staff if you are proposing to make 20 or more redundancies within 90 days.
You might not always be able to avoid redundancies. But by working with employees you could find ways to save jobs and better understand how to plan for the future.
Make a redundancy plan
You should make a redundancy plan that you’ll share with all staff and put into action. It can help you follow a fair process and avoid the risk of legal claims.
It's a good idea to work with any trade union or employee representatives when making a plan.
The redundancy plan should include:
- all the options you've considered before deciding on redundancies
- the number of redundancies you're considering
- keeping staff informed and supported throughout the process
- consulting all employees affected, including those off work, for example on maternity or sick leave
- timeframes, for example to leave enough time for consultation
- agreeing on fair selection criteria
- whether redundancy pay and notice periods are statutory or contractual
- an appeals process for if an employee thinks the redundancy process or their selection was unfair
Support and train managers
An organisation with managers will need them to help handle the redundancy situation and keep staff informed.
You should make sure your managers:
- know why redundancies are being made
- understand in detail the redundancy plan
- are comfortable and confident to talk and work together with staff about the redundancy process
- know how to raise issues or ideas with those leading the redundancy process
- have training to be confident in carrying out any duties
- know where to go for further support
By involving managers from the start and keeping them informed and updated throughout, they'll be able to:
- come up with ideas that help ensure a smooth process and reduce or avoid redundancies
- effectively talk with staff about the redundancy process and plans
- make redundancy dismissals and give notice of when staff selected for redundancy will leave
- help restructure in the best possible way