For the employee concerned, it can feel like they are being dismissed because of personal reasons. But the reality is that it is their role - not them - that is no longer required by the organisation. 

Redundancy brings with it an uncertain and difficult time for you and the rest of your team. You’ll know the organisation has taken this route due to a business reason — perhaps losing a contract or a particular client. This is not only a matter of concern for the business and its potential future growth, but for you too, and your financial future. 

Your team will also be feeling vulnerable about their current - and possible future - positions. Not all of them will be entitled to claim a statutory redundancy payment (in the UK, this is an option for staff with two years’ service). They will be worried about their financial positions too, and possibly worrying about finding another job. 

All these factors mean you must handle someone’s redundancy carefully. It is a time for thoughtful words and considered actions.  

It’s also worth being aware of the legal consequences that can unwittingly ensnare your company if it fails to follow certain steps. 

As is good practice in all HR matters, you should document your actions at each stage. 

Relevant manager behaviours

Redundancy will be a stressful process not only for the members of your team directly affected, but for you and the rest of your team. Being able to take an objective and calm approach fits with the desired behaviour of Handling conflict and people management issues. Exercise 2 and Exercise 3 offer a route to developing these behaviours. 

If your company fails to follow a fair and reasonable process throughout, you risk turning an unfair redundancy into an unfair dismissal case.  

In addition, if you don’t handle a redundancy situation well, you could end up alienating your team and that could lead to your best employees voting with their feet. 

If you are involved in selecting employees for redundancy, ensure you select objectively. Choosing on a subjective basis could later lead to a claim of discrimination against your employer. For example, if an organisation uses redundancy as a fake reason for dismissing a woman who has just had a child, this could be interpreted as sex discrimination.  

All three scenarios would result in a loss for your company. A discrimination claim could prove particularly expensive because, while compensation for unfair dismissal is limited, compensation for discrimination is not. 

Relevant manager behaviours 

Following a fair and reasonable process throughout redundancy of one of your team member’s roles fits with the desired behaviours of Being open, fair and consistent. These behaviours will guide you to be objective and fair. Exercise 1 offers a route to developing these behaviours.

Redundancy is tricky and needs to follow a standard pathway. You should expect to be guided by an HR adviser at every step of the way. If your company does not have a redundancy policy, expect the HR adviser to direct you to a redundancy procedure. 

If you have a redundancy policy, follow it to the letter — this could be useful evidence of your employer being fair and reasonable. If you do not have a redundancy policy, work with HR who will develop an appropriate process to follow. 

Working in tandem with your HR department, follow legal requirements to ensure: 

• the affected team member(s) are given all the information required under law, including why redundancies are necessary, what alternatives have been considered, and the amount of redundancy pay and how it has been calculated; 

• an individual consultation process has been carried out with individuals consulted about their selection for redundancy and an opportunity to challenge this 

• selection for redundancy has been based on objective selection criteria, such as performance, experience or appraisals 

• suitable alternative employment has been considered and offered, if available.

While not a legal requirement, it is good practice to offer support. It can also help to maintain good relations with other members of the team.

Give them time to talk through their worries or concerns and allow them plenty of time to look for other jobs and attend interviews. Liaise with HR to ensure they have the best outcome, for example a detailed reference, and access to expertise to improve their CV or interview skills.

Voluntary redundancy is where a member of staff volunteers to be dismissed. This is often given as an option as part of the consultation process. It is only likely to be taken up by staff if you pay them more than the statutory minimum required by law.