Tips on navigating redundancy in your business
Redundancy is often a challenging time for everyone involved and making a role redundant is not an ‘easy’ option for employers. However, handling the situation correctly can help ensure it is fair and transparent for all, and that your business, team and reputation are protected.
So, if you are in the situation where you need to make a role, or several roles, redundant, here is some helpful advice on navigating the process:
Follow legal basics
The legalities surrounding redundancies can be complicated, so we would advise seeking expert HR support as failing to follow the correct procedures could result in unfair dismissal claims. Please get in touch and we can advise you.
As a business owner/employer, you need to understand:
When a redundancy is genuine. This means the role itself must no longer exist.
Fair selection. Your criteria must be objective, consistent, and non-discriminatory. You may select employees based on skills, performance, attendance, and disciplinary records for example.
Consultation obligations. Employers must consult with employees with more than 2 years’ service before making any redundancies.
If you are making 20 or more redundancies, different rules apply.
Plan thoroughly and document everything
Before anyone is approached regarding redundancy, you should:
Document why the role is being made redundant
Define your selection criteria transparently where selection pool applies
Keep a record of all discussions and decisions.
A well-documented process shows that you’ve been fair and professional.
Communicate
Employees remember how you treat them during tough times, and while redundancy is stressful, how you communicate can make a huge difference.
Be professional but empathetic
Be transparent about the business reasons for redundancies – people are savvy to ‘made up’ reasons.
Offer support
Support is key when redundancy is unavoidable. Supporting your employees through this process reflects well on your business and protects relationships.
Signpost them to your Employee Assistance Programme, if you have one
Offer career support or references.
They are legally entitled to time off to attend interviews so be supportive for this
Check in on the emotional impact - a little empathy goes a long way.
Review the process
Once the process is complete, it’s a good idea to take a step back and review things.
Did everything comply with employment law?
Was the communication clear and respectful?
Could anything be improved next time?
This reflection helps you manage future challenges more confidently and professionally.
While redundancy is tough, it doesn’t have to be damaging. With careful planning, fair selection, and good communication, you can navigate this process responsibly and protect your business and your people.
As HR experts, we’ve assisted businesses through the redundancy process many times, and can help you too.
We can work with you and provide:
A robust rationale/justification for the change to ensure the detail is consistent and known.
Provide template documentation needed.
Be a source for questions or concerns answering them pragmatically and with solutions.
Provide example selection criteria if you have a ‘pool’ to select from.
Alternatively, we can provide a ‘How to’ guide on the process needed.
Just get in touch to discuss your needs.