Redundancy and Restructure
The business needs to change. One or more roles need to go.
The commercial case may be clear. The legal process for executing it fairly is not.
Redundancy has strict procedural requirements. The law does not simply ask whether the redundancy is genuine, it asks whether the process was fair. Many businesses get the decision right and still face tribunal claims because they didn't follow the right steps.
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Written and reviewed by Samantha Newton FCIPD, Chartered Fellow CIPD · 25+ years' employee relations experience · Last reviewed June 2026
At a glance
- What it is
- Ending roles for genuine business reasons, handled lawfully.
- Main risk
- Unfair dismissal, or a protective award for poor consultation.
- First step
- Be sure the role, not the person, is genuinely going.
- Typical timescale
- Weeks; longer where 20+ roles trigger collective consultation.
You've made the commercial decision. Now you need to execute it correctly.
The business logic is sound. The role is no longer viable, the structure needs to change, or the business is going through a difficult period. You know what needs to happen.
What's less clear is the legal process for getting there. Many business owners approach redundancy as a conversation, they tell the employee the role is going, agree a leaving date, and consider it done. That approach, however well-intentioned, regularly results in unfair dismissal claims even when the redundancy is entirely genuine.
The law requires more than a genuine business reason. It requires a fair process: genuine consultation, consideration of alternatives, and, where more than one employee is at risk, objective and consistently applied selection criteria.
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Typical situations supported
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Where redundancy processes go wrong
Most redundancy problems are not about the decision, they are about the process. Common failures include:
Telling the employee the role is redundant before any consultation has taken place
Failing to genuinely consider whether the employee could be offered a different role
Using selection criteria that are subjective, unclear, or inconsistently applied
Not keeping records of consultation meetings
Missing collective consultation obligations where 20 or more employees are affected
Calculating statutory redundancy pay incorrectly
Even where the redundancy is clearly genuine and commercially necessary, a flawed process gives a tribunal grounds to find the dismissal unfair. The business loses twice, the cost of the redundancy, and the cost of the claim.
What's at stake
What's actually at risk
Up to 90 days' pay
The protective award per affected employee when collective redundancy consultation is handled wrongly.
- Unfair dismissal claims after redundancy are among the most common at tribunal, with legal costs and management time on top of the award.
- Where 20 or more roles are affected, collective consultation applies, and getting it wrong risks a protective award of up to 90 days' pay per employee.
- Beyond the legal risk, a redundancy handled without care damages morale and the business long after the person has left.
A redundancy handled correctly protects the business, treats the employee with respect, and costs far less than one that ends in a tribunal claim a year later.
The process
The redundancy process, step by step
A clear, fair process is what protects you at every stage. Here's how it runs, and where Samantha guides you through it.
Rationale
Confirm a genuine business case for the change.
Pool & selection
Define the pool and fair, objective criteria.
Consult
Consult meaningfully, individually and collectively where needed.
Alternatives
Look genuinely at redeployment and alternatives.
Decision
Confirm outcomes, notice and redundancy pay.
Appeal
Offer a right of appeal.
- 1
Rationale
Confirm a genuine business case for the change.
- 2
Pool & selection
Define the pool and fair, objective criteria.
- 3
Consult
Consult meaningfully, individually and collectively where needed.
- 4
Alternatives
Look genuinely at redeployment and alternatives.
- 5
Decision
Confirm outcomes, notice and redundancy pay.
- 6
Appeal
Offer a right of appeal.
How Magenta HR helps
Whether you are at the planning stage or already partway through a process, Samantha gives you a clear, legally sound roadmap:
Assessment of whether the redundancy situation is genuine and legally defensible
Clear structure for the individual consultation process
Advice on selection criteria and how to apply them fairly
Guidance on alternative roles and what consideration is legally required
Help with the letters and documentation at each stage
Statutory redundancy pay calculations
Advice on settlement if that is the right route
Written plan within 48 hours
Samantha has guided owner-managed businesses through redundancies of all sizes, from a single role to whole-team restructures. She understands that these are often difficult personal decisions as well as commercial ones.
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 could not 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.
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Common questions
I know the role needs to go. Can I just tell the employee and agree a leaving date?+
No. Even when the business decision is clear and entirely genuine, you still need to follow a proper consultation process before the decision is finalised. Telling someone they are being made redundant and then holding a meeting to discuss it does not count as meaningful consultation. Tribunals see through it.
What if there is only one person in the role? Do I still need to do all of this?+
Yes. Individual consultation is required even when only one employee is at risk and the role is clearly being removed. You still need to meet with them, discuss the situation, consider any alternatives, and allow them to be accompanied. The size of the business does not reduce the obligation.
I want to make sure this is handled fairly. Where does the risk actually sit?+
Most redundancy claims are not about whether the redundancy was genuine. They are about whether the process was fair. Common problems include no real consultation, unclear selection criteria, poor documentation, or failing to consider whether the employee could do another role. Getting the process right from the start protects both the business and the departing employee.
Do I have to consult with the employee before making them redundant?+
Yes. Consultation is a legal requirement, not a courtesy. You must consult with the employee before any decision is made final. Telling someone their role is being made redundant and then holding a consultation meeting is not meaningful consultation, tribunals see through it.
What if there is only one employee in the role, do I still need to go through the full process?+
Yes. Even if only one person is affected and the role is clearly being removed, you must follow a proper individual consultation process. This includes at least one formal meeting, consideration of alternatives, and the right to be accompanied.
Can I select someone for redundancy because of their performance?+
Performance can be a legitimate selection criterion, but it must be applied objectively and consistently, with documented evidence. Using performance as a proxy for someone you want to remove, without objective evidence, creates significant legal risk.
What is a settlement agreement and when is it appropriate here?+
A settlement agreement is a legally binding contract where the employee agrees to leave on agreed terms and waives their right to bring tribunal claims. It is often a cleaner option when both sides want a quick resolution. Samantha can advise on whether this is the right route and how to approach it.
What triggers collective consultation obligations?+
Collective consultation is required where 20 or more employees are being made redundant at one establishment within a 90-day period. This requires a minimum 30-day consultation period (45 days for 100 or more redundancies) and notification to the Secretary of State using form HR1.
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