Redundancy: Guidance for people professionals

Employers must follow a clear and fair redundancy process. However, there is no legal obligation to have a fixed formal written policy. Employers can choose to adopt a formal procedure or follow a more flexible approach according to the circumstances of each round of redundancies.

Employers who adopt formal redundancy policies may choose the terms themselves, or may agree the policy terms with recognised trade union or employee representatives.

If there is no fixed written process, employers implementing redundancies should let staff know the key elements of the redundancy process to be followed. Whichever approach is taken, the process should include at least these steps

1. Planning
2. Identifying the pool for selection
3. Seeking volunteers
4. Consulting employees
5. Selection for redundancy
6. Suitable alternative employment
7. Appeals and dismissals
8. Redundancy payment
9. Compassion during redundancy