Redundancy: An introduction
Learn how to use redundancy as a last resort when all alternative approaches have been considered
Learn how to use redundancy as a last resort when all alternative approaches have been considered
Redundancy is distressing for employees and can lower staff morale and productivity. It should therefore be a last resort.
This factsheet suggests alternatives to redundancy and provides guidance on managing redundancy when it's unavoidable. It looks at the steps in the redundancy process, including identifying the pool for selection, seeking volunteers, selection for redundancy, consulting employees, appeals and dismissals, suitable alternative employment and redundancy payments. Further information on managing the process is available on our redundancy guidance for people professionals.
The Employment Rights Bill will make significant changes to employers’ obligations to carry out collective consultation where an employer proposes 20 or more redundancies within 90 days. The exact detail of the changes isn’t clear. However, the UK Government’s original proposal to entirely remove current reference to the ‘at one establishment’ rule will not go ahead following public consultation. There will be a new threshold test whereby employers proposing 20 or more redundancies ‘at one establishment’ OR a certain number/percentage of employees are affected across the employing entity must carry out collective consultation. This new threshold test is yet to be determined and will be set out in regulations.
The government is also proposing to increase the cap on Protective Awards in collective redundancy situations to 180 days (increased from 90 days) to encourage employer compliance.
Keep up to date with the latest on these changes with our Tracker of potential law changes.
We will update this page once any changes are enforced.
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