What is the UK redundancy process in simple terms?

The UK redundancy process, in simple terms, is the legal framework that governs how employers and employees handle the situation when redundancies are on the table. It's the set of rules, rights and obligations that employers and employees must follow when dealing with redundancies. Under UK law, getting it right means knowing your stuff, that's the relevant statute (usually the Employment Rights Act 1996 or the Equality Act 2010), the ACAS Code of Practice, and any contractual terms that are already in place. For UK employers, the gritty reality is that redundancy process is rarely about the substance of the decision, it's about following the correct procedure. Tribunals tend to focus on what you did, when you did it, and whether you gave the employee a fair chance to respond. If you're unsure about how it all applies in your specific situation, grab a chat with a qualified HR advisor before taking any action.

How does UK redundancy process work for UK employers in real life?

UK Redundancy Process is all about striking a balance between the statutory rights, the employment contract and the sensible actions of a fair employer. Under UK employment law, it's usually the employer's responsibility to act fairly, document decisions and consult with the employee before making any changes that affect their terms or status. In practice, employers should: (1) check to see if the matter is covered by the contract or handbook; (2) confirm whether the Employment Rights Act 1996 or related legislation imposes a specific process; (3) follow the ACAS Code where it comes into play; and (4) put decisions in writing with a clear explanation. Not following the correct process is the single most common reason why employers win nothing in an Employment Tribunal claim about UK redundancy process. We help UK businesses with UK redundancy process every week, drop us a line to get advice tailored to your needs.

What are the rules around UK redundancy process for small businesses to bear in mind?

UK Redundancy Process applies to small businesses in pretty much the same way as it does to bigger employers, there is no 'small employer' exemption to UK employment law. In a few areas (like collective redundancy consultation, gender-pay reporting), there are thresholds based on headcount but in most cases, the day-to-day rules around UK redundancy process kick in from the very first employee. For UK SMEs, the practical risk is that small teams just don't have an in-house HR specialist, so they often handle UK redundancy process on the fly, which is exactly the route to tribunal claims. Just document the reason behind your decision, follow a fair process, give them a chance to respond, and offer a right of appeal when due. A 30-minute call with a CIPD-qualified advisor is often all you need to get UK redundancy process back on track.

How much does UK redundancy process typically cost an employer in practice?

UK Redundancy Process has both direct and indirect costs that UK employers should factor in. Direct costs include any necessary statutory payments (like notice, redundancy pay or statutory sick pay), the time of managers and HR involved in the process, and any external legal or HR advice. Indirect costs can be harder to pin down but often end up being bigger: lost productivity, the impact on team morale, and the management attention tied up in a contentious matter. If UK redundancy process ends up at the Employment Tribunal, defending a claim can cost anywhere from £8,000 to £25,000, even if the employer comes out on top. Compensation for lost claims is uncapped for discrimination and capped at the lower of one year's pay or the statutory maximum for unfair dismissal. Sorting things out with proper advice on UK redundancy process upfront is almost always cheaper than fixing things after things have gone wrong.

Can an employer make changes relating to UK redundancy process without getting consent?

UK Redundancy Process usually can't be changed unilaterally by an employer without risking a claim. Most changes to contractual or process terms affecting UK redundancy process require either the employee's agreement, a clear contractual flexibility clause, or a fair consultation process backed up by solid business reasons. If an employer imposes change without consent, the employee may quit and claim constructive dismissal, refuse to accept the change and continue under protest, or bring a breach-of-contract claim. The Statutory Code of Practice on Dismissal and Re-engagement (2024) has also just landed, and it bites hard on 'fire and rehire' tactics in this area, employment tribunals can now boost awards by up to 25% if the Code is ignored. Before changing anything relating to UK redundancy process, get some advice, the cost of getting the employee on board is usually less than the cost of forcing the change.

What are the consequences if UK redundancy process rules are not followed?

UK Redundancy processes carry genuine legal risks when they're botched. More often than not, the consequences under UK employment law are a claim at the Employment Tribunal, usually for unfair dismissal, or one of the other big ones, discrimination, breach of contract or not paying people what they're owed. The payouts from Tribunals can be pretty steep, we're talking lost pay, compensation for how someone's been hurt by something (in discrimination cases) and even a 25% boost if you've ignored the ACAS Code. And then there's the stuff that doesn't get as much attention in the news: getting redundancy wrong can kill your reputation as an employer, make it a whole lot harder to recruit new staff and basically erode trust between you and your team. Online reviews on Glassdoor and LinkedIn often highlight exactly these process failures, when things go wrong, it's like a beacon for unhappy former workers to share their horror stories. On a more positive note, the good news is that nearly every single UK redundancy process dispute can be headed off if you get the right advice at the right time. If you find yourself in a situation that's already gone south, get a specialist on board before it's too late, and the odds are it can get sorted out before it ends up at the tribunal.

What is uk redundancy process under UK law?

Uk Redundancy Process is a defined concept under UK employment law that affects how employers manage their workforce day-to-day. In plain English, uk redundancy process refers to the legal framework, rights and obligations that apply when an employer and employee deal with the matter at hand. Under UK law, getting uk redundancy process right means following the relevant statute (most commonly the Employment Rights Act 1996 or the Equality Act 2010), the ACAS Code of Practice where applicable, and any contractual terms that already apply between the parties. For UK employers, the practical importance of uk redundancy process is that mistakes are rarely about substance, they are almost always about process. Tribunals look at what you did, when you did it and whether you gave the employee a fair opportunity to respond. If you are unsure how uk redundancy process applies to your specific situation, speak to a qualified HR advisor before acting.

How does uk redundancy process work for UK employers?

Uk Redundancy Process works through a combination of statutory rights, the employment contract and reasonable employer behaviour. Under UK employment law, the employer typically carries the duty to act fairly, document decisions and consult with the employee before any change that materially affects their terms or status. In practice, employers should: (1) check whether the matter is covered by the contract or handbook; (2) confirm whether the Employment Rights Act 1996 or related legislation imposes a specific process; (3) follow the ACAS Code where it applies; and (4) record decisions in writing with a clear rationale. Failure to follow process is the single most common reason employers lose Employment Tribunal claims about uk redundancy process. Our HR advisors handle uk redundancy process for UK businesses every week, get in touch for guidance tailored to your situation.

What is the UK redundancy process in simple terms?

The UK redundancy process, in simple terms, is the legal framework that governs how employers and employees handle the situation when redundancies are on the table. It's the set of rules, rights and obligations that employers and employees must follow when dealing with redundancies. Under UK law, getting it right means knowing your stuff, that's the relevant statute (usually the Employment Rights Act 1996 or the Equality Act 2010), the ACAS Code of Practice, and any contractual terms that are already in place. For UK employers, the gritty reality is that redundancy process is rarely about the substance of the decision, it's about following the correct procedure. Tribunals tend to focus on what you did, when you did it, and whether you gave the employee a fair chance to respond. If you're unsure about how it all applies in your specific situation, grab a chat with a qualified HR advisor before taking any action.

How does UK redundancy process work for UK employers in real life?

UK Redundancy Process is all about striking a balance between the statutory rights, the employment contract and the sensible actions of a fair employer. Under UK employment law, it's usually the employer's responsibility to act fairly, document decisions and consult with the employee before making any changes that affect their terms or status. In practice, employers should: (1) check to see if the matter is covered by the contract or handbook; (2) confirm whether the Employment Rights Act 1996 or related legislation imposes a specific process; (3) follow the ACAS Code where it comes into play; and (4) put decisions in writing with a clear explanation. Not following the correct process is the single most common reason why employers win nothing in an Employment Tribunal claim about UK redundancy process. We help UK businesses with UK redundancy process every week, drop us a line to get advice tailored to your needs.

What are the rules around UK redundancy process for small businesses to bear in mind?

UK Redundancy Process applies to small businesses in pretty much the same way as it does to bigger employers, there is no 'small employer' exemption to UK employment law. In a few areas (like collective redundancy consultation, gender-pay reporting), there are thresholds based on headcount but in most cases, the day-to-day rules around UK redundancy process kick in from the very first employee. For UK SMEs, the practical risk is that small teams just don't have an in-house HR specialist, so they often handle UK redundancy process on the fly, which is exactly the route to tribunal claims. Just document the reason behind your decision, follow a fair process, give them a chance to respond, and offer a right of appeal when due. A 30-minute call with a CIPD-qualified advisor is often all you need to get UK redundancy process back on track.

How much does UK redundancy process typically cost an employer in practice?

UK Redundancy Process has both direct and indirect costs that UK employers should factor in. Direct costs include any necessary statutory payments (like notice, redundancy pay or statutory sick pay), the time of managers and HR involved in the process, and any external legal or HR advice. Indirect costs can be harder to pin down but often end up being bigger: lost productivity, the impact on team morale, and the management attention tied up in a contentious matter. If UK redundancy process ends up at the Employment Tribunal, defending a claim can cost anywhere from £8,000 to £25,000, even if the employer comes out on top. Compensation for lost claims is uncapped for discrimination and capped at the lower of one year's pay or the statutory maximum for unfair dismissal. Sorting things out with proper advice on UK redundancy process upfront is almost always cheaper than fixing things after things have gone wrong.

Can an employer make changes relating to UK redundancy process without getting consent?

UK Redundancy Process usually can't be changed unilaterally by an employer without risking a claim. Most changes to contractual or process terms affecting UK redundancy process require either the employee's agreement, a clear contractual flexibility clause, or a fair consultation process backed up by solid business reasons. If an employer imposes change without consent, the employee may quit and claim constructive dismissal, refuse to accept the change and continue under protest, or bring a breach-of-contract claim. The Statutory Code of Practice on Dismissal and Re-engagement (2024) has also just landed, and it bites hard on 'fire and rehire' tactics in this area, employment tribunals can now boost awards by up to 25% if the Code is ignored. Before changing anything relating to UK redundancy process, get some advice, the cost of getting the employee on board is usually less than the cost of forcing the change.

What are the consequences if UK redundancy process rules are not followed?

UK Redundancy processes carry genuine legal risks when they're botched. More often than not, the consequences under UK employment law are a claim at the Employment Tribunal, usually for unfair dismissal, or one of the other big ones, discrimination, breach of contract or not paying people what they're owed. The payouts from Tribunals can be pretty steep, we're talking lost pay, compensation for how someone's been hurt by something (in discrimination cases) and even a 25% boost if you've ignored the ACAS Code. And then there's the stuff that doesn't get as much attention in the news: getting redundancy wrong can kill your reputation as an employer, make it a whole lot harder to recruit new staff and basically erode trust between you and your team. Online reviews on Glassdoor and LinkedIn often highlight exactly these process failures, when things go wrong, it's like a beacon for unhappy former workers to share their horror stories. On a more positive note, the good news is that nearly every single UK redundancy process dispute can be headed off if you get the right advice at the right time. If you find yourself in a situation that's already gone south, get a specialist on board before it's too late, and the odds are it can get sorted out before it ends up at the tribunal.

What is uk redundancy process under UK law?

Uk Redundancy Process is a defined concept under UK employment law that affects how employers manage their workforce day-to-day. In plain English, uk redundancy process refers to the legal framework, rights and obligations that apply when an employer and employee deal with the matter at hand. Under UK law, getting uk redundancy process right means following the relevant statute (most commonly the Employment Rights Act 1996 or the Equality Act 2010), the ACAS Code of Practice where applicable, and any contractual terms that already apply between the parties. For UK employers, the practical importance of uk redundancy process is that mistakes are rarely about substance, they are almost always about process. Tribunals look at what you did, when you did it and whether you gave the employee a fair opportunity to respond. If you are unsure how uk redundancy process applies to your specific situation, speak to a qualified HR advisor before acting.

How does uk redundancy process work for UK employers?

Uk Redundancy Process works through a combination of statutory rights, the employment contract and reasonable employer behaviour. Under UK employment law, the employer typically carries the duty to act fairly, document decisions and consult with the employee before any change that materially affects their terms or status. In practice, employers should: (1) check whether the matter is covered by the contract or handbook; (2) confirm whether the Employment Rights Act 1996 or related legislation imposes a specific process; (3) follow the ACAS Code where it applies; and (4) record decisions in writing with a clear rationale. Failure to follow process is the single most common reason employers lose Employment Tribunal claims about uk redundancy process. Our HR advisors handle uk redundancy process for UK businesses every week, get in touch for guidance tailored to your situation.

UK Redundancy Process: 7 Steps to a Fair Procedure (2026)

Key takeaways

Redundancy can't just be a cover for getting shot of someone you don't like, there has to be a genuine business reason.
If you're firing 20 or fewer employees, you don't have to consult for a minimum amount of time, but you need to give them enough notice to be able to say their piece, typically 3 to 4 weeks.
When it comes to picking who to let go, you have to be objective and consistent, no favouritism or sweetheart deals.
Statutory redundancy pay is capped at £700/week. Use our calculator to figure out exactly how much you need to stump up.
Make sure you document every step of the way, because if it all goes wrong, and it sometimes does, the tribunal is going to want to see how you got there.

This guide covers just the process, not the actual definition of redundancy, see our glossary for that. If you need to figure out how much you owe someone in statutory pay, use our redundancy pay calculator. For the consultation letter, check out our templates. And if you'd rather have a team of experts run this whole thing for you, well, we do that too.

Redundancy is a perfectly genuine reason to sack someone under section 139 of the Employment Rights Act 1996, but only if you do it right. To be fair, you need to have (a) a genuine redundancy situation on your hands, (b) a fair process, and (c) some reasonable alternatives to consider. Get any of those three wrong and you'll be facing an unfair dismissal claim.

Step 1: Work out the business case

Before you even think about telling anyone, you need to write down on paper why you're doing this. Closing a factory, cutting management levels, or just plain old cutting costs, all perfectly valid reasons. And by the way, "we don't like Alex" is not on the list.

Step 2: Define the at-risk group

This is the group of people from whom you'll be picking the redundancies. And you need to define it in a way that makes sense, no picking favourites or personal opinions here. Getting it wrong is one of the most common reasons that redundancy dismissals get found unfair.

Step 3: Have a proper chat with them

Consultation has to be more than just a box ticking exercise, you need to have a proper conversation with them and give them enough information to be able to have a proper conversation back. And if you're firing 20 or more people in any 90-day period at the same workplace, then the rules around collective consultation kick in.

Step 4: Sort out who gets the chop

Work out a scoring system for each person in the at-risk group, and make sure it's fair and consistent. And get another manager to double check your scoring to make sure you haven't made a mistake.

Step 5: Have a one to one chat with the people in the firing line

Those people get to have a one to one chat with you to go over the scoring, their best options for alternative roles, and what happens next.

Step 6: Pay them off and give them notice

Statutory redundancy pay is based on how many years' service they've got, and is capped at £700/week. Use our redundancy pay calculator to work out the exact amount.

Step 7: Give them the chance to appeal

Always offer an appeal, because if you don't, you'll be up for a procedural defect at the tribunal.

Want to speak to a Redundancy Process expert?

If you can't or don't want to do this in house, our Redundancy Support for Employers service will take care of it all for you, from designing the process to drafting the letters and running the consultations.

This is all general information stuff, not actual legal advice. If you need that, give one of our HR experts a call.

This content is for general information only and does not constitute legal advice. For advice on your specific situation, please contact one of our HR experts.

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The UK Redundancy Process: A Step-by-Step Guide for Employers