Redundancy & Restructuring
Strategic, compliant support through workforce change and redundancy.
Redundancy is a legally defined form of dismissal that must be handled carefully to avoid unfair dismissal, discrimination and protective award claims. Employers must establish a genuine redundancy situation and follow a fair and transparent process, including consultation, fair selection and consideration of alternative employment. Redundancy processes are under increasing scrutiny following recent case law and reforms introduced by the Employment Rights Act 2025. We advise employers at all stages of workforce restructuring, helping to manage legal risk while maintaining employee relations and operational continuity.
This service supports employers of all sizes undertaking restructures, downsizing or organisational change.
Establishing and documenting the redundancy rationale
We advise on whether a redundancy situation exists under the statutory definition, including business closure, workplace closure or reduced requirements for work of a particular kind. We support employers in documenting the commercial rationale and considering alternatives to redundancy.
Consultation, selection and suitable alternatives
We advise on fair consultation processes, selection pools and objective criteria. Where collective redundancy thresholds are met, we guide employers through representative elections and statutory consultation requirements. We also advise on suitable alternative employment and trial periods.
Governance, documentation and training
We support employers with redundancy documentation, including consultation letters, scripts and decision records. We also advise on governance frameworks and provide training for managers on conducting redundancy processes consistently and lawfully.
Disputes, settlement and Tribunal defence
Where disputes arise, we advise on settlement strategies and defend Employment Tribunal claims, including unfair dismissal, discrimination and protective award claims.
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Learn how we improved efficiency our client
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Case Study: Streamlining Operations
Learn how we improved efficiency our client
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Learn how we improved efficiency our client
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Frequently Asked Questions
Find answers to your most pressing questions about our services and processes.
Why are redundancy processes under increased scrutiny?
Recent appellate guidance and legislative reform have heightened expectations around consultation quality, transparency and decision making in redundancy exercises. Failures in process, even where the underlying business rationale is sound, are increasingly being challenged.
When does a redundancy situation legally arise?
A redundancy situation arises where an employer closes its business, closes a workplace or has a reduced requirement for employees to carry out work of a particular kind. Redundancy is a statutory concept and should not be used to address conduct or capability issues.
What are the biggest legal risks when making redundancies?
The primary risks include unfair dismissal claims, discrimination claims and protective awards for failure to consult collectively. Compensation exposure can be significant, particularly where group claims are brought, and mishandling redundancies can also damage morale and reputation.
Are we required to consult even if redundancies are inevitable?
Yes. Consultation must be meaningful and take place before decisions are finalised. Employers must explain proposals, listen to feedback and consider alternatives. Failure to do so is a common basis for successful claims.
What triggers collective consultation obligations?
Collective consultation is required where 20 or more redundancies are proposed within a 90 day period at a single establishment. This triggers obligations to consult employee representatives and comply with statutory minimum consultation periods.
How should selection pools and criteria be determined?
Selection pools should include employees doing the same or interchangeable work. Selection criteria must be objective, measurable and consistently applied. Care is needed to avoid criteria that could be directly or indirectly discriminatory.
Do we have to offer alternative roles?
Yes. Employers must actively consider whether suitable alternative employment exists anywhere within the organisation throughout the redundancy process. A failure to do so is a common feature of successful unfair dismissal claims.
Can redundancy decisions result in discrimination claims?
Yes. If redundancy selection or criteria disadvantage employees with protected characteristics, employers may face discrimination claims in addition to unfair dismissal claims. Discrimination compensation is uncapped.
What is the first step when planning redundancies?
Confirm the business rationale, explore alternatives to redundancy and plan consultation carefully. Taking early legal advice can significantly reduce risk and help structure a fair and defensible process.