Redundancy consultation process

What is the redundancy consultation process?

Following a  redundancy consultation process is a legal obligation placed upon employers to inform and consult affected employees about potential redundancies. This consultation should be meaningful and provide sufficient opportunity for employees to raise any questions or concerns.. The ultimate goal of consultation is to reduce the impact of redundancy and to explore viable solutions which might prevent job losses.

When should employers start the redundancy consultation process?

Employers must initiate the redundancy consultation process as soon as redundancies are proposed or anticipated. The law clearly states specific timelines to follow depending on how many redundancies are planned within a 90-day period.

Where an employer proposes to make between 20–99 redundancies, consultation must start at least 30 days before the first redundancy takes effect. For 100 or more redundancies, consultation must begin at least 45 days before the first redundancy dismissal occurs. However, regardless of numbers, best practice encourages employers to start consultation at the earliest possible stage.

Steps involved in the redundancy consultation process

At Stephensons, we recommend our clients follow a structured consultation approach, adhering to employment law requirements and best practices. A transparent, ethical and clearly documented redundancy consultation process typically includes:

Initial announcement and planning stage

Firstly, the employer must announce the potential redundancy situation clearly and transparently to affected employees. Employers must provide detailed reasons for the proposed redundancies, highlighting business justification.

Consultation meetings with affected employees

Employers must hold individual or group consultation meetings with affected employees or their representatives dependant on the number of employees affected by the proposal. These meetings serve as a forum for discussing alternatives, exploring voluntary redundancy schemes, addressing concerns and answering employee questions clearly.

Considering alternatives to redundancy

Employers should actively seek alternatives to redundancies during the process. Alternative options could include redeployment, reducing working hours, voluntary redundancy, flexible working or retraining opportunities. Employers must demonstrate genuine willingness to explore these alternatives.

Fair selection criteria

A clearly communicated redundancy selection criteria must be established and applied consistently and fairly. Factors considered typically include skills and qualifications, experience, work performance, attendance records and disciplinary records. Employees have the right to understand precisely how selection criteria will be applied.

Offering redundancy packages and providing notice

Once the consultation process concludes, and if redundancies remain necessary, employees who are selected for redundancy must receive proper notification along with statutory redundancy pay. Employers should clearly inform affected staff about their redundancy entitlements and notice periods.

Legal consequences of non-compliance with redundancy consultation requirements

Failure to adhere to the redundancy consultation process can result in significant legal consequences, including claims to an Employment Tribunal, and financial penalties for businesses. Claims can include unfair dismissal, constructive dismissal or protective awards. Employers failing to properly consult on redundancies can be liable to pay compensation of up to 90 days’ salary per affected employee.

How can Stephensons assist your business with the redundancy consultation process?

Navigating redundancy consultations can be challenging and time-consuming for employers, particularly when balancing commercial needs with legal responsibilities. Our dedicated employment law specialists at Stephensons offer tailored, expert guidance, ensuring your redundancy consultation process is handled professionally and compliantly.

At Stephensons, our solicitors provide practical solutions, strategic advice and comprehensive legal support throughout redundancy situations. Our guidance ensures your employees are managed respectfully and fairly, minimising disruption and safeguarding your business from potential employment disputes or claims.

Why choose Stephensons for redundancy consultation support?

Stephensons Solicitors are highly respected and trusted employment law specialists, recognised nationally for delivering outstanding legal expertise. Our employment law solicitors hold accreditations from leading legal bodies, including Lexcel, the Law Society’s mark of excellence, and membership of Employment Lawyers Association demonstrating our unrivalled knowledge and skill within employment law.

We take pride in offering businesses tailored advice, committed personal support and clear communication. Our extensive track record in successfully guiding many businesses through complex redundancy situations positions us uniquely to safeguard your company from potential pitfalls and costly employment tribunal claims.

Contact Stephensons for redundancy consultation advice today

If your business faces redundancy consultations, now is the time to secure expert help. Contact Stephensons employment law experts today on 0161 696 6170 to discuss how we can help your organisation approach the redundancy consultation process clearly, lawfully and successfully.