Being told that your role is at risk of redundancy does not necessarily mean that your employer can simply end your employment. Even where there is a genuine redundancy situation, an employer should still follow a fair process before making a final decision.
A fair redundancy process will usually involve informing affected employees about the proposals, carrying out meaningful consultation, considering ways to avoid or reduce redundancies and, where employees are being selected from a wider group, identifying an appropriate selection pool and applying reasonable selection criteria. Employers should also consider whether there are suitable alternative roles available within the organisation.
The exact process will depend on the circumstances, including the number of employees affected, the nature of the proposed redundancies and whether any collective consultation requirements apply.
What happens if your employer does not consult you properly?
Redundancy consultation should be genuine and meaningful rather than simply informing you of a decision that has already been made. You should normally have an opportunity to understand the reasons for the proposed redundancy, ask questions, challenge the basis for your provisional selection where appropriate and suggest alternatives.
Problems can arise where an employer has effectively made a final decision about who will be made redundant before meaningful consultation takes place, or where it fails genuinely to consider representations or alternatives put forward during the process.
Additional legal requirements currently apply where an employer proposes to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less. In those circumstances, the employer will usually be required to carry out collective consultation with recognised trade union representatives or elected employee representatives, as well as dealing appropriately with individual employees.
If an employer fails to comply with its collective consultation obligations, affected employees may be able to bring a claim for a protective award. For dismissals taking place on or after 6 April 2026, an Employment Tribunal can award up to 180 days' pay per affected employee, depending on the circumstances.
Can an unfair redundancy process be challenged?
A genuine redundancy situation does not automatically mean that a resulting dismissal will be fair. An employee may be able to challenge the dismissal where, for example, the employer has failed to carry out meaningful consultation, used an unreasonable selection pool or selection process, unfairly applied its selection criteria, failed properly to consider suitable alternative employment or selected the employee for an unlawful reason.
At present, employees will generally need at least two years' continuous employment to bring an ordinary unfair dismissal claim. From 1 January 2027, this qualifying period is due to reduce to six months.
Some dismissal claims do not require the usual qualifying period. This includes various automatically unfair dismissal claims, such as dismissal for certain whistleblowing, health and safety or statutory rights reasons. Separate claims may also arise under the Equality Act 2010 where redundancy decisions involve unlawful discrimination, and discrimination claims do not depend on the ordinary unfair dismissal qualifying period.
Strict time limits apply to Employment Tribunal claims. For an ordinary unfair dismissal claim, the usual time limit is three months less one day from the effective date of termination, subject to the rules relating to Acas Early Conciliation. Other claims may have different time limits, so it is important to seek advice promptly.
What should you do if you think your redundancy process is unfair?
If you are concerned about how your redundancy is being handled, it is usually sensible to raise those concerns during the consultation process where possible. You can ask your employer to explain the business reasons for the proposed redundancy, how any selection pool was determined, which selection criteria have been used and, where applicable, how your individual score was calculated.
You can also ask what alternatives to redundancy have been considered and whether there are any suitable vacancies elsewhere within the organisation. If you disagree with your selection or scoring, you should explain why and provide any relevant information during consultation.
Keep copies of relevant correspondence, consultation documents, scoring information and other records relating to the redundancy process. These documents may be important if you later need to challenge the decision.
In some cases, an employer may offer a settlement agreement to resolve a redundancy dispute or agree the terms of an employee's departure. For a settlement agreement to validly waive the relevant statutory employment claims, specific legal requirements must be satisfied, including that the employee receives advice from an appropriate independent adviser on the terms and effect of the agreement and its effect on their ability to pursue those claims. A solicitor can review the circumstances surrounding the redundancy, explain the proposed agreement and advise on the options available before it is signed.
For more information please contact us on 01524 907100, info@pre-law.co.uk or through our online enquiry form
