Redundancy process for less than 20 employees

Redundancy for smaller businesses

Redundancy occurs when your business no longer requires certain roles due to genuine operational reasons. Small companies with fewer than 20 employees must follow established statutory guidelines to ensure a fair and transparent redundancy process. Although the requirements differ from larger-scale redundancies, smaller businesses must still approach this process with diligence, clarity and fairness.

Stephensons are committed to guiding smaller organisations through redundancy procedures, ensuring compliance with employment law requirements without unnecessary complexity.

Starting the redundancy consultation process

When making less than 20 redundancies at your organisation, UK employment law requires meaningful individual consultation with each affected employee. Although the collective consultation rules do not apply here, you must still explain clearly to each employee why redundancy has arisen, explore suitable alternative employment, and discuss any questions or concerns from employees.

At Stephensons, we advise employers to ensure that consultations are documented thoroughly and conducted in good faith to reduce the risk of employee claims in employment tribunals.

Selecting employees fairly for redundancy

Fair selection criteria must be identified when redundancies arise in small organisations. This includes, among others, skills, experience, attendance and disciplinary records. Selection criteria applied must be objective, non-discriminatory and applied consistently across your affected workforce.

Stephensons employment solicitors can guide you through this complex stage, assisting you in identifying fair and objective selection criteria and ensuring that you maintain accurate records of your decision-making process.

Providing notice and redundancy payments

Employees being made redundant must receive adequate statutory notice of their redundancy. This notice period varies depending on the employee's length of service. Additionally, any employees with at least two years of continuous service are entitled to statutory redundancy pay calculated according to age, length of service, and weekly earnings (subject to a statutory cap).

Stephensons can assist with calculating redundancy payments accurately, ensuring fair compensation for employees and protecting your business from financial risks and possible disputes.

Offering suitable alternative employment

Employers must consider and offer suitable alternative employment within the organisation, if possible. If employees unreasonably refuse appropriate alternative roles, their entitlement to statutory redundancy pay may be affected. It is essential, however, to assess alternative employment objectively, fairly and transparently.

Stephensons solicitors are experienced in advising small businesses how best to navigate issues surrounding alternative employment offers and employee rights during the redundancy process.

Appeals against redundancy decisions

Though not legally mandatory, a redundancy appeal process is considered best practice. Allowing employees to raise internal appeals demonstrates fairness and transparency in your redundancy procedures and can reduce the risk of costly, time-consuming legal action.

Stephensons can provide guidance in establishing an easy-to-follow appeals procedure, ensuring any employee complaints or grievances regarding redundancy can be dealt with promptly and effectively.

Speak to Stephensons today

If your small business is facing potential redundancies and you require expert employment law advice, contact our specialist redundancy solicitors at Stephensons today on 0161 696 6170. Alternatively, submit an online enquiry form and one of our legal experts will provide fast, confidential advice tailored to your needs.