Redundancy Policy Writers

What are Redundancy Policies?

Redundancy policies explain how a business will manage staff redundancies fairly, legally and with sensitivity, when roles are no longer required due to restructuring, business closure or other operational changes.

These HR policies ensure that employees are treated with dignity during a difficult process and that the organisation remains compliant with employment law throughout.

What Do Redundancy Policies Cover?

A redundancy policy typically includes:

Criteria for selecting roles or employees at risk
How consultation processes will be carried out
Timescales for communication and decision-making
Support available for affected employees
Redundancy pay entitlements and notice periods
Redeployment or alternative role options
Appeal procedures and legal obligations

A clear redundancy policy helps employers follow a consistent and transparent process, reducing the risk of legal challenges or claims of unfair dismissal.

It also provides reassurance to staff that, if redundancies become necessary, decisions will be made based on fair and objective criteria, with appropriate support and communication throughout.

By having a robust policy in place, businesses can handle workforce changes in a responsible and structured way, protecting both people and reputation.

Legal Basis

Redundancy is one of the five fair reasons for dismissal under the Employment Rights Act 1996 (s.98).

It is governed by the Trade Union and Labour Relations (Consolidation) Act 1992 (collective consultation), the Information and Consultation of Employees Regulations 2004, and the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 (priority for employees on maternity, adoption or shared parental leave, extended through to 18 months after birth from 6 April 2024).

Collective consultation thresholds remain at 20+ proposed redundancies at one establishment within 90 days (30-day minimum consultation) and 100+ (45-day minimum consultation). HR1 notifications to the Insolvency Service are mandatory at the same thresholds.

The Employment Rights Bill proposes to remove "at one establishment" so that thresholds are calculated across the whole employer, significantly increasing scope when enacted.

Common Compliance Pitfalls

Selection criteria scored after the fact. Documented, contemporaneous scoring is the single most important evidence in any unfair-dismissal claim.
Pool of one without justification. Selecting from a pool of one is lawful but only where the redundancy genuinely affects a unique role; tribunals routinely reject artificial pool-of-one claims.
Voluntary redundancy treated as automatic acceptance. Employers retain discretion; "first come, first served" approaches risk losing critical skills.
Suitable alternative employment not searched. The employer must search across the whole organisation, not only the affected team, and the priority rules for protected employees must be applied first.
Trial periods misapplied. Where an employee accepts an alternative role, statutory trial periods (up to 4 weeks, extendable for retraining) must be observed before the redundancy payment is forfeited.

Sector-Specific Considerations

TUPE interaction: Where redundancies are connected with a transfer of undertaking, additional consultation and ETO-reason rules apply.

Public sector: Cabinet Office Statement of Practice and the Civil Service Compensation Scheme set out enhanced redundancy entitlements.

Regulated sectors: FCA-authorised firms must consider SMCR responsibility maps when restructuring; CQC providers must notify changes to registered persons.

What Policy Pros Delivers

Our Redundancy Policy package includes the main policy, a step-by-step procedure for individual and collective consultation (20+ and 100+), a selection criteria matrix template, a voluntary redundancy and enhanced-package framework, a suitable-alternative-employment search log, an HR1 notification template, and a manager briefing on the 2024 protected-period rules and the forthcoming Employment Rights Bill changes.