Redundancy Policy & Procedure Template

Purpose and Scope

This policy sets out how [Organisation Name] manages redundancy situations. It applies to all employees.

This document does not form part of any employment contract. [Organisation Name] may adjust the process if circumstances require, provided the steps comply with applicable statutory obligations.

Working through related paperwork at the same time? See also our Exit & Leaver Procedure, Reference Request & Provision and Adoption Leave Policy.

Policy Statement

[Organisation Name] treats redundancy as a last resort. When a genuine redundancy situation arises, such as a facility closure, restructuring, or reduced demand for specific work, we consult openly, apply objective selection criteria, explore alternative employment options, and treat affected staff fairly and respectfully throughout.

Definition of Redundancy

A redundancy occurs when [Organisation Name] closes all or part of the organisation, closes or relocates an operational site, or no longer needs as many employees to carry out work of a particular kind.

Redundancy attaches to the position, not the individual. Manage performance or conduct issues under separate capability or disciplinary procedures, not under this policy.

Measures to Avoid Redundancies

Before starting formal redundancy procedures, [Organisation Name] evaluates options to prevent or minimize job losses, including:

• Freezing external recruitment and ending temporary or agency worker arrangements.
• Restricting overtime and reviewing contractor costs.
• Redeploying affected employees into existing vacant roles across [Organisation Name].
• Inviting applications for voluntary redundancy on terms set by [Senior Role], reserving the right to decline applications if the business must retain specific skills.
• Agreeing changes to working hours or patterns.

Consultation Procedure

If redundancies are unavoidable, management consults with individuals before making final decisions.

1. At-Risk Notification: Write to affected employees to confirm their role is at risk, explain why the changes are proposed, and outline the consultation process.
2. Consultation Meetings: Hold [Number] or more consultation meetings with each at-risk employee. Employees may bring a workplace colleague or trade union representative to every meeting.
3. Information Exchange: Present the provisional selection pools, proposed criteria, and potential options to avoid or reduce dismissals.
4. Employee Input: Review suggestions, counter-proposals, and feedback from affected employees. Evaluate all submissions genuinely and provide written responses.
5. Collective Consultation: When proposals trigger statutory thresholds for collective redundancy, launch collective consultation procedures, notify relevant authorities, and arrange for employee representatives to be elected where required.

Selection Pools and Criteria

1. Pool Definition: [Senior Role] defines and documents the selection pool, grouping employees who perform identical or materially interchangeable roles.
2. Criteria Establishment: Selection criteria must be objective, measurable, and relevant to ongoing operational needs. Criteria can include qualifications, verified skills, documented performance records, and disciplinary history.
3. Equitable Review: Review criteria before scoring to avoid unfair disadvantage. Exclude or adjust absence records linked to disability, pregnancy, or statutory family leave. Never base criteria on protected characteristics under applicable equality laws.
4. Scoring Process: [Role 1] and [Role 2] score candidates in the pool independently. [Senior Role] moderates the final scores.
5. Disclosure: Give employees their individual assessment scores. They may submit queries or challenges during the consultation period.

Alternative Employment and Trial Periods

1. Vacancy Notification: Share details of all open positions across [Organisation Name] with at-risk employees throughout the consultation period.
2. Redeployment Offers: Offer suitable alternative roles to qualified employees before issuing final redundancy notices.
3. Priority Allocation: Give employees on maternity leave or other statutory family-related leave priority access to suitable alternative vacancies as required by law.
4. Trial Periods: Employees who accept a suitable alternative role get a statutory trial period to test suitability. If the role proves unsuitable during the trial and the refusal is reasonable, employment ends on redundancy terms.

Notice, Redundancy Pay, and Appeals

1. Termination Notice: Provide selected employees with written confirmation detailing the termination of employment, their contractual or statutory notice period (whichever is longer), and their exit date.
2. Redundancy Payment: Provide qualifying employees with a written calculation of their redundancy payment. Eligible staff receive statutory redundancy pay plus any enhanced payments offered by [Organisation Name].
3. Time Off: Grant employees serving notice reasonable paid time off to search for work or attend training.
4. Appeals: To appeal a selection decision, employees must submit a written appeal to [Senior Role] within [Number] working days of receiving notice. A senior manager with no prior involvement in the selection process will hear the appeal. The appeal officer’s decision is final.

Records and Review

1. Record Retention: Save all business case documents, consultation notes, pool definitions, scoring sheets, redeployment logs, and appeal outcomes in [System] for [Period].
2. Offboarding: Process departing employees using the standard leaver procedure.
3. Policy Review: Review this policy every [Frequency] and before starting any redundancy exercise.

• Policy Owner: [Role]
• Approved By: [Role]
• Last Review Date: [Date]
• Next Review Date: [Date]