What makes a redundancy genuine in the UK?

A redundancy is genuine when the business closes, the workplace closes, or the need for employees to do certain work reduces. The reason must relate to the role or business need, not simply dissatisfaction with the individual.

Do employers have to offer alternative roles before redundancy?

Employers should consider and offer suitable alternative employment where it exists. Failing to do so can make a redundancy dismissal unfair.

Can an employee appeal a redundancy decision?

Yes. Employers should offer an appeal process. An appeal helps demonstrate fairness and gives the business a chance to correct problems before a dispute escalates.

Redundancy Process UK Step by Step Guide

Q: When does collective redundancy consultation apply?

Under the current framework, collective consultation is triggered when 20 or more redundancies are proposed within 90 days at one establishment. Employers should also monitor reform in this area because consultation on wider triggers is active in 2026.

Redundancy process UK compliance matters because a flawed consultation, weak selection criteria or missed payment can turn a genuine business restructure into an unfair dismissal or protective award claim. In 2026, collective redundancy risk is under even more scrutiny, so employers need a process that is organised from day one.

This guide explains the redundancy process step by step, covering when redundancy is genuine, how to consult, how to select fairly, when collective rules apply and what employers should pay and document.

What is a genuine redundancy in the UK?

A redundancy usually happens when the business closes, a workplace closes, or the need for employees to do particular work reduces. Employers should start here, because many tribunal problems begin when a business labels a dismissal as redundancy even though the real issue is performance, conduct or a personality conflict.

A genuine redundancy should be tied to a real business change, such as:

reduced demand for work
a restructure removing roles
automation or process redesign
relocation or site closure
loss of a key contract

Redundancy is about the role, not the person

If the business still needs the role and is mainly unhappy with the individual, redundancy is probably the wrong route. That creates obvious unfair dismissal risk.

What should employers do first?

Before announcing decisions, employers should:

define the business reason
identify which roles are at risk
decide whether there is a selection pool
check whether collective consultation may apply
prepare a consultation plan and script
gather alternative vacancy information

That foundation makes the rest of the process easier to defend.

How does the redundancy consultation process work?

Consultation is not just telling employees what is going to happen. It is a genuine chance to discuss the proposal, explore ways to avoid redundancies and consider alternatives.

When does collective redundancy consultation apply?

Collective redundancy obligations are triggered when the employer proposes 20 or more redundancies within 90 days at one establishment under the current legal framework. That area is under active reform and employers should monitor changes closely, because the government consulted in 2026 on widening the trigger beyond the current establishment-based test.

Where collective consultation applies, employers also need to consider form HR1 notification and minimum consultation periods. Failure here can lead to a protective award, and from 6 April 2026 the maximum award for collective consultation failures increased to 180 days' pay.

Collective redundancy risk is expensive

If collective consultation rules apply and the employer gets the process wrong, tribunal exposure can be severe. Escalate legal review early rather than late.

How should employers select employees for redundancy fairly?

A fair selection process is one of the most litigated parts of redundancy.

Common fair criteria include:

skills and qualifications
disciplinary record, where relevant and evidenced
performance records over a meaningful period
attendance, adjusted carefully for disability, pregnancy and other protected reasons

Employers should avoid crude or discriminatory criteria. For example, scoring absence without adjusting for disability-related leave or maternity issues creates obvious legal risk.

Do you need a selection pool?

Usually, yes. The employer should ask which group of employees does the affected work and whether the at-risk employee could reasonably have been pooled with others. A pool of one can be lawful, but it needs a sensible reason.

Employers dealing with role changes should also consider suitable alternative employment before dismissal. That links to the settlement agreements UK employer guide and redundancy pay calculator.

What notice, redundancy pay and alternatives must employers consider?

Once consultation is complete and the decision is confirmed, employers need to manage the end stage properly.

Notice

Employees are entitled to statutory notice unless the contract gives more. Employers may ask employees to work notice, place them on garden leave if the contract allows, or make payment in lieu where lawful.

Statutory redundancy pay

Eligible employees with sufficient service may be entitled to statutory redundancy pay. The amount depends on age, length of service and weekly pay cap. Employers should calculate this carefully and confirm it in writing.

Suitable alternative employment

If there is a suitable alternative role, the employer should offer it. That usually means the employee should not have to compete in a fully open process against external candidates while their redundancy is progressing. Getting this wrong can undermine the fairness of the dismissal.

Redundancy process UK checklist for employers

Confirm that redundancy is genuine and role-based
Identify the affected roles and any selection pool
Check whether collective consultation rules may apply
Prepare consultation materials and timelines
Meet employees individually and listen to alternatives
Use fair, evidence-based selection criteria
Review suitable alternative roles across the business
Calculate notice, holiday pay and redundancy pay correctly
Confirm the decision in writing with appeal rights
Keep a full paper trail of every stage

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Treat scoring as evidence, not theatre

A scoring matrix only helps if managers can explain the evidence behind each score. Unsupported numbers rarely survive challenge.

Frequently asked questions

Free Template: Redundancy Consultation and Selection Checklist

Download a practical checklist covering business rationale, consultation meetings, scoring, alternatives and outcome letters.

redundancy-consultation-selection-checklist.pdf

Key takeaways

A strong redundancy process UK plan starts with a genuine business rationale and ends with careful consultation, fair selection and correct payments. The biggest legal risks are usually predetermined decisions, weak scoring and failures around collective consultation. For related support, read the unfair dismissal UK employer guide, the TUPE regulations explained simply and use the redundancy pay calculator.