Redundancy Support
Making roles redundant is one of the hardest things a business owner has to do. We manage the process with care, ensuring you follow the correct procedure and treat your people with respect throughout.
Redundancy Handled Properly
Redundancy is one of the most legally sensitive processes any employer can undertake. Whether you are restructuring to reduce costs, closing a location, or losing a contract that supported specific roles, the law requires you to follow a fair and transparent procedure. Under section 139 of the Employment Rights Act 1996, a genuine redundancy exists when an employer ceases (or intends to cease) carrying on the business, the workplace closes, or the need for employees to do work of a particular kind has diminished. If your reason does not fall within that definition, any resulting dismissal could be found unfair at tribunal, regardless of how well you ran the process.
The consequences of getting redundancy wrong are significant. Employees with two or more years of service can bring unfair dismissal claims, and if you fail to follow collective consultation rules (required when proposing 20 or more redundancies within 90 days), the tribunal can make a protective award of up to 90 days' gross pay per affected employee. Even in smaller redundancy situations, a poorly handled process can result in claims for discrimination, breach of contract, or failure to consult. Beyond the legal risk, redundancy handled badly damages morale among remaining staff and your reputation as an employer.
At Rebox HR, we manage the entire redundancy process for you, from building the business case through to the final exit. We draft all the letters and documentation, attend meetings alongside your managers (on-site or remotely), handle the consultation conversations, and calculate every payment accurately. Our role is to take the procedural burden off your shoulders so you can focus on running your business, while being confident that every step is legally compliant and every person is treated with dignity.
What We Cover
Practical, expert support across every aspect of redundancy for your business.
Business Case and Planning
Before any consultation begins, we help you establish a genuine redundancy situation and document the business reasons behind it. This includes reviewing your organisational structure, identifying the pool of affected roles, and building a clear rationale that would withstand tribunal scrutiny. We also prepare a detailed project plan covering timescales, consultation schedules, and the sequence of meetings and correspondence. For larger programmes involving 20 or more roles, we ensure you file the required HR1 notification to the Redundancy Payments Service (now the Insolvency Service) at least 30 or 45 days before the first dismissal takes effect, depending on numbers.
Selection Criteria and Scoring
Fair selection is one of the most challenged aspects of redundancy at tribunal. We design objective, measurable, and non-discriminatory selection criteria tailored to your business. Common criteria include skills and qualifications, performance records, attendance (excluding disability-related or pregnancy-related absence), disciplinary history, and length of service. We set up scoring matrices, train your managers on how to apply the criteria consistently, and moderate the results to check for any unintended bias. If only one person holds a particular role, we help you document why that role is in the pool on its own.
Individual and Collective Consultation
We manage the full consultation process, whether it involves one employee or one hundred. For collective consultation (20 or more redundancies within 90 days at one establishment), we help you elect employee representatives, prepare the section 188 disclosure letter containing the information required by law, and chair consultation meetings. For individual consultation, we attend each meeting with your manager to ensure proper procedure is followed. At every stage, we genuinely consider alternatives to redundancy, voluntary redundancy, redeployment, reduced hours, or retraining, and we document the discussion thoroughly.
Redundancy Payments and Calculations
We calculate statutory redundancy pay for every affected employee based on their age, length of service, and weekly pay (capped at the current statutory limit, which is reviewed each April). If your contracts or policies offer enhanced redundancy terms, we calculate those too and advise on the tax implications. Statutory redundancy pay is tax-free and exempt from National Insurance. Payments in lieu of notice (PILON) are taxable if there is a PILON clause in the contract. Ex-gratia payments above the statutory entitlement are tax-free up to the first 30,000 pounds. We ensure every calculation is accurate and every payment is made correctly.
Letters, Scripts, and Documentation
A proper redundancy process generates a significant amount of paperwork, and each document needs to be right. We draft all the letters for you: the initial at-risk letter, invitation to each consultation meeting (with the right to be accompanied clearly stated), notes from every meeting, the outcome letter confirming redundancy or redeployment, and the appeal acknowledgement and outcome. We also prepare manager scripts for consultation meetings so your team knows exactly what to say and what to avoid. If you need to issue a section 188 letter for collective consultation, we draft that too, covering all the information required by the Trade Union and Labour Relations (Consolidation) Act 1992.
Manager Support and Training
Redundancy conversations are some of the most difficult your managers will ever have. We prepare your managers before the process begins, covering what to expect, how to handle emotional reactions, what they can and cannot say, and how to maintain fairness throughout. We can attend meetings alongside your managers to provide real-time support, take notes, and ensure nothing is missed. After the process, we help your managers communicate with the remaining team, address any concerns about job security, and rebuild morale. If you want your managers to be better equipped for future restructuring, we also offer dedicated training sessions.
How We Help
A clear, structured approach from start to finish.
Free Initial Consultation
We start with a confidential conversation to understand your situation, the business reasons behind the proposed redundancies, the number of roles affected, and any time pressures. We explain the legal process, the likely timeline, and what will be required from you. There is no charge for this initial consultation and no obligation to proceed.
Planning and Consultation
We build the full project plan, draft your selection criteria and scoring matrices, prepare all the consultation documentation, and guide you through every meeting. Whether you need us to attend meetings in person, join remotely, or simply prepare your managers and review the notes afterwards, we flex to suit your needs. Throughout the consultation period, we ensure every conversation is documented and every alternative is genuinely considered.
Implementation and Aftercare
Once consultation is complete, we issue outcome letters, calculate final payments (statutory redundancy, notice pay, holiday accrual, and any enhanced terms), and manage the notice period. If anyone appeals, we handle that process too. We also help you communicate with the remaining team, address any concerns about the future, and ensure your business can move forward with a stable and motivated workforce.
Frequently Asked Questions
What counts as a genuine redundancy situation?
Under section 139 of the Employment Rights Act 1996, a redundancy occurs when the employer ceases (or intends to cease) carrying on business entirely, the workplace where the employee works closes, or the need for employees to carry out work of a particular kind has ceased or diminished. Common examples include losing a contract, closing a department, automating a process, or restructuring to reduce headcount. If the real reason for dismissal is something else (for example, performance or conduct), dressing it up as redundancy will not make it fair and could result in an unfair dismissal claim.
When does collective consultation apply?
Collective consultation is required under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 when an employer proposes to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less. For 20 to 99 redundancies, consultation must begin at least 30 days before the first dismissal takes effect. For 100 or more, it must begin at least 45 days before. You must also notify the Secretary of State by filing form HR1 with the Insolvency Service within the same timescales. Failure to collectively consult can result in a protective award of up to 90 days' gross pay per affected employee.
How do I select who is made redundant fairly?
You must use objective, measurable, and non-discriminatory selection criteria. Common criteria include skills, qualifications, performance records, attendance (excluding disability-related, pregnancy-related, or family leave absence), and disciplinary record. Length of service alone (last in, first out) is generally considered unfair because it can indirectly discriminate against younger employees. We help you design a scoring matrix, train your managers to apply it consistently, and moderate the results to check for any unintended bias before sharing scores with employees during consultation.
What are employees entitled to during the redundancy process?
Employees at risk of redundancy have the right to be consulted individually (and collectively if 20 or more are affected), to be accompanied at consultation meetings by a colleague or trade union representative, to be considered for any suitable alternative employment within the organisation, and to receive written reasons for their selection. Employees with two or more years of continuous service are entitled to statutory redundancy pay. Employees under notice of redundancy who have been continuously employed for at least two years also have the right to reasonable time off during working hours to look for new work or arrange training.
How much is statutory redundancy pay?
Statutory redundancy pay is calculated based on the employee's age, length of continuous service (capped at 20 years), and weekly pay (capped at a limit that is reviewed each April). The formula is half a week's pay for each full year of service when the employee was under 22, one week's pay for each full year between 22 and 40, and one and a half weeks' pay for each full year aged 41 or over. Statutory redundancy pay is completely free of tax and National Insurance. Many employers also offer enhanced redundancy terms above the statutory minimum, and we can advise on the tax treatment of any additional payments.
Can I make someone redundant while they are on maternity leave or sick leave?
You can include employees on maternity leave, shared parental leave, adoption leave, or sick leave in a redundancy process, but you must be very careful. Under regulation 10 of the Maternity and Parental Leave etc. Regulations 1999, employees on maternity leave (and those on adoption or shared parental leave) have a right to be offered a suitable alternative vacancy in priority over other employees, if one exists. Dismissing someone because of their pregnancy, maternity leave, or a disability-related absence would be automatically unfair and discriminatory. We ensure your process treats protected employees correctly at every stage.
Do you support both employers and employees?
We work exclusively with employers. Our role is to protect your business by ensuring the redundancy process is legally compliant, fair, and properly documented. We do not advise the employees being made redundant. Affected employees should seek their own independent advice, and we always recommend that they do so. If you would like to offer outplacement support or career coaching to departing employees as part of your redundancy package, we can discuss options with you.
What happens if an employee appeals their redundancy?
You should always offer a right of appeal in your redundancy outcome letter. If an employee appeals, we manage that process for you. We arrange the appeal meeting (which should be heard by a more senior manager who was not involved in the original decision, where possible), prepare the chair, review the employee's grounds of appeal, and draft the appeal outcome letter. Common grounds for appeal include challenges to the selection scoring, claims that consultation was inadequate, or arguments that a suitable alternative role was available but not offered. A properly handled appeal demonstrates fairness and strengthens your position if the matter goes to tribunal.
“Rebox helped us with taking our first employees. We didn't know where to start, but they guided us through every step. We wouldn't hesitate to recommend them.”
Related Services
Staff Consultation
Collective and individual consultation is a legal requirement during redundancy. We manage the entire process, ensuring compliance with the Trade Union and Labour Relations Act 1992.
Staff Consultation →Settlement Agreements
Sometimes a negotiated exit is the better option. We draft settlement agreements that protect your business and provide a clean break for both parties.
Settlement Agreements →Restructuring
Redundancy often forms part of a wider restructuring programme. We support the full organisational change process, from planning through to implementation.
Restructuring →Facing a Redundancy Situation?
Whether you need to make one role redundant or restructure an entire department, we are here to help. Book a free consultation and let us take the process off your hands, so it is done properly, compliantly, and with care for your people.
Book Your Free ConsultationOr call us directly on 01327 640070