To make a redundancy legally compliant in the UK, employers must follow a fair process aligned with UK employment law, ACAS guidance, collective consultation rules, and statutory redundancy requirements. Failing to do that, can lead to unfair dismissal claims and financial penalties.

Employers must first establish a genuine redundancy situation, meaning the role is no longer required due to business closure, workplace restructuring, or a reduced need for employees, rather than performance or conduct issues.

Next, begin a fair consultation process. If you are proposing 20 or more redundancies at one establishment within a 90-day period, you must follow collective consultation requirements, including electing employee representatives, starting consultation at least 30 days before the first dismissal (or 45 days if 100 or more redundancies are proposed), and submitting a HR1 form to the Secretary of State before consultation begins.

For fewer that 20 redundancies, employers should carry out individual consultation, ensuring it is meaningful, properly documented and conducted over a reasonable timeframe.

During consultation, employers must explore ways to avoid or reduce redundancies, respond to feedback, and ensure a fair and non-discriminatory process. Where there is a selection pool, apply objective selection criteria to reduce the risk of discrimination or unfair dismissal claims.

Before confirming redundancy, consider suitable alternative employment. Once finalised, confirm the outcomes in writing.

If redundancies proceed, employees must receive the correct notice period, statutory redundancy pay (if eligible), and the right to appeal, typically within 5 working days. Offering outplacement support or time off to find work is not legally required but reflects best practice.