Fast FAQs

We need to make some people redundant. Is it advisable to establish a formal redundancy procedure, and if so, what should it cover?

Yes. Redundancies are subject to a range of requirements, and failure to observe them could give rise to claims for unfair dismissal. The best way to reduce the risk is to have a procedure and stick to it. It should cover:

• identifying a reasonable 'pool for selection', ie the group of employees from whom the employees selected for redundancy will be chosen
• adopting objective selection criteria and applying them fairly to the employees within this pool
• warning and consulting employees about the potential redundancy situation
• seeking a view from the union (if any)
• informing and consulting employee representatives in cases of collective redundancy
• considering alternative employment for those employees whose roles are redundant
• giving reasonable paid time off to look for work or make arrangements for training for future employment

In addition, if you are making individual employees redundant your procedures must currently incorporate at least the statutory minimum procedure: a written explanation of the reason(s) for the redundancy; a face-to-face meeting to discuss it; and a right of appeal (see Statutory discipline and grievance procedures).

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