Redundancy

Redundancies have, sadly, always been a part of the cycle of employment.  In particular, when the economy is difficult, employers will sometimes be faced with no alternative but to consider cutting jobs.

Given that redundancies are most likely to arise because your company is having financial difficulties, it’s all the more important to make sure that you get it right, in order to avoid the risk of costly employment tribunal proceedings.

The procedure you follow will be different depending on whether you are making individual or collective redundancies.

Contrary to how it sounds, an individual redundancy does not mean that only one person is affected:  if there are 19 or fewer employees at risk of redundancy, it counts as an individual. 
Find out more about individual redundancies.

If you are considering making 20 or more employees redundant within a 90 day period, you must follow the rules on collective consultation.  
Find out more about collective redundancies.

Don’t forget that employees who are made redundant will be entitled to their notice and, if they have been with you for two or more years, to statutory redundancy pay.

For help in calculating statutory redundancy pay, use our free statutory redundancy pay calculator.