Redundancy
Redundancy and restructure
The consultation process is more important than the decision itself.
The business needs to change. A role is no longer needed, the team needs restructuring, or costs need to come down. This guide explains what a fair process looks like and what to avoid.
Supporting owner-managed businesses across Oxfordshire, Wiltshire, Berkshire and the UK.
Not ready to book? Just tell me what's going on and I'll come back to you. No obligation.
Wondering what this costs? See how it works and pricing →
★★★★★ 5.0 on Google reviews · FCIPD Chartered Fellow
Written and reviewed by Samantha Newton FCIPD, Chartered Fellow CIPD · 25+ years' employee relations experience · Last reviewed August 2026
You've made the business decision. Now you need to get the process right.
You've made a business decision that means a role, or roles, are no longer needed.
Or the structure of the team needs to change significantly.
You want to be fair to the people affected. But you also need to get this right for the business.
You're not sure exactly what the process involves, what you have to do, or where the risks are.
Typical situations supported
If any of these sound familiar, you're in the right place.
Not sure how serious yours is?
Get a clear, honest read in about 3 minutes. Free, confidential, no login.
Where redundancy goes wrong for employers
Redundancy is a legitimate reason for dismissal, but only if handled correctly. The most common mistakes:
Treating it as purely a business decision without following the required employment process alongside it
Telling the employee rather than consulting them, consultation must be genuine, not a notification
Failing to consider alternatives, redeployment, reduced hours, changes to terms
Unfair selection criteria when choosing between employees in similar roles
Incorrect notice periods or failure to pay statutory redundancy pay where it's owed
Making someone redundant for a reason that is actually something else, performance, conduct or a personality clash
A tribunal will look at both the reason and the process. Even where the redundancy is genuine, a flawed process creates significant exposure. And beyond the legal risk, how you handle this matters, for the people leaving and the people staying.
What's at stake
What's actually at risk
Redundancy is one of the most common routes to unfair dismissal claims:
- Failure to consult properly, the employee must have a genuine opportunity to put forward alternatives or challenge the decision
- Inadequate notice and incorrect statutory redundancy pay
- Unfair selection, particularly where criteria are subjective or inconsistently applied
- Failure to consider suitable alternative roles within the business
- Redundancy used as a cover for a reason that's actually disciplinary, which significantly increases legal risk
Compensatory awards for unfair dismissal are capped today, and from 1 January 2027 that cap is removed entirely. Add legal costs, management time and the impact on the remaining team, and the total cost of a poorly handled redundancy is substantial.
Redundancy handled badly creates unfair dismissal claims, even when the redundancy itself is genuine. The process is where most businesses get exposed.
How Magenta HR helps
In a single session, Samantha reviews the situation and gives you a clear plan:
Confirmation that the redundancy situation is legally sound before you start
A structured consultation process, with guidance on what to say, how to document it and what to offer
Advice on selection criteria if choosing between employees
Clarity on notice periods, statutory redundancy pay and any contractual obligations
Guidance on how to handle the conversation with the employee, and with the rest of the team
Written summary of the process and next steps within 48 hours
You deal directly with Samantha Newton FCIPD, not a helpline or a junior consultant. Someone who has supported owner-managed businesses through restructure and redundancy situations across a wide range of sectors.
The Magenta Method
From problem to sorted, in four clear steps
A clear, four-step approach so you always know where you stand and what happens next.
Understand
We get a clear, honest picture of what's really going on, beneath the surface.
Assess the risk
Your legal exposure and commercial impact, explained in plain English.
Plan the right path
Realistic options and the correct steps, in order, written up within 48 hours.
Resolve & protect
Support through it, then keep you protected so the next issue is caught early.
Real situation · anonymised
Redundancy
Process completed properly in four weeks
She needed to make a role redundant. She'd never done it before.
Situation
A change in the business meant one role was no longer viable. The owner wanted to be fair but had no idea how to run a proper process without leaving herself exposed.
What changed
A legally compliant redundancy process, handled step by step. The right consultations, the right documentation, no gaps.
Outcome
The role ended cleanly. No claim. The employee was treated with respect throughout. The owner said she couldn't have done it without a proper plan.
Owner, healthcare provider
Reviewed by Samantha Newton FCIPD, Chartered Fellow of the CIPD, with 25+ years handling situations like this.
Common questions
What counts as genuine consultation?+
Genuine consultation means giving the employee a real opportunity to understand the situation, put forward alternatives, and challenge the decision, before the decision is finalised. It's not a notification meeting. The employee must be able to influence the outcome. How long this takes depends on the situation, but it can't be a formality.
Do I have to offer alternative roles before making someone redundant?+
You're expected to consider whether any suitable alternative roles exist within the business. You don't have to create a role, but you do need to genuinely consider what's available. Failure to do this is a common reason redundancy dismissals are found unfair.
What is statutory redundancy pay and who qualifies?+
Employees with two or more years of continuous service are entitled to statutory redundancy pay. The amount depends on age, weekly pay (capped) and length of service. Failing to pay it, or calculating it incorrectly, creates additional legal risk.
Can I use redundancy to remove someone I have concerns about?+
No. If the real reason for dismissal is performance, conduct or a personality issue, redundancy isn't the right process, and a tribunal will look carefully at whether the redundancy is genuine. Using redundancy for other reasons significantly increases your legal exposure.
How many people can I make redundant before collective consultation applies?+
If you're proposing to make 20 or more people redundant within a 90-day period, collective consultation obligations apply, including notification to the Insolvency Service and minimum consultation periods. Get advice early if this applies to your situation.
Ready to sort this out
Get a clear, honest read on your situation
Start with the free Situation Check to understand exactly what you're dealing with, or book a free consultation and talk it through with Samantha directly.
Not ready to book? Just tell me what's going on and I'll come back to you.
You deal directly with Samantha, no call centre, no junior, and if you can handle it yourself, she'll tell you. Getting it wrong can run to five figures; a focused session starts from £495 + VAT, with a written plan in 48 hours.
Free and no obligation · Usually a reply within the hour · Referred by accountants and solicitors.
⚡ Need to act today? Message me on WhatsApp and I'll come straight back if I'm free.
If you'd rather not involve anyone yet
Practical systems for every employee situation.
Plain-English guidance, letters, checklists and an editable policy, written by a Chartered Fellow. From £197.
You might also be dealing with
These situations often come up alongside each other.