Staff Redundancy: A Consultation Guide For Employers

Navigating redundancy is one of the most challenging responsibilities you’ll face as an employer. Whether you’re a small business owner or managing a growing team, ensuring a fair and legally compliant redundancy consultation process is crucial; not only to protect your business but also to support your employees through a difficult transition. This guide is designed to demystify redundancy consultation meetings, clarify your legal obligations, and provide practical, step-by-step advice so you can approach this sensitive process with confidence, compassion, and clarity. Let’s work through it together, making sure you’re well-equipped to handle every stage with professionalism and care.

In This Guide

  1. What is Redundancy Consultation?
  2. When and How to Consult
  3. Consultation Process and Timeline
  4. Selection Criteria and Fair Process
  5. Notice Periods and Redundancy Pay
  6. Supporting Affected Employees
  7. Common Challenges and Pitfalls
  8. FAQs on Redundancy Consultation Meetings

What is Redundancy Consultation?

A redundancy consultation is a structured dialogue between employer and employee(s) about proposed job losses, exploring reasons, selection methods and alternatives to redundancy. Its main purpose is to reach a fair decision, but it can also help to mitigate risk of unfair dismissal claims.

When and How to Consult

Individual Consultation

  • Applies when fewer than 20 employees are at risk at one establishment within 90 days.
  • No statutory minimum duration, but meetings must be meaningful and allow time for employee response.
  • You should notify the individual promptly and explore alternatives.

redundancy consultation

Collective Consultation

  • Triggers at 20+ redundancies in 90 days at one site.
  • Must consult employee representatives (trade unions or elected reps) and hold individual consultations alongside.
  • Consultation must begin at least 30 days before the proposed dates of redundancy for 20–99 redundancies and 45 days for 100+ redundancies.
  • Notify the Redundancy Payments Service before consultation starts to avoid fines.

Consultation Process and Timeline

StageActionTiming
InitiationIssue at-risk notice, invite to consultationAs soon as redundancy proposed
First Consultation MeetingExplain rationale, pool selection, invite feedbackWithin consultation period
Follow-Up & Second MeetingDiscuss employee responses and counter-proposalsReasonable interval after first meeting
Decision & NoticeConfirm outcomes, issue dismissal noticesAfter minimum consultation period
Appeal PeriodAllow employee to appeal selection or processPer company policy or statutory notice

A typical redundancy process takes from initial proposal to dismissal notice of 3–6 weeks for small exercises and 6–8 weeks for larger ones, subject to consultation requirements.

Selection Criteria and Fair Process

  • Define clear, objective criteria (e.g. skills, performance, attendance) that do not discriminate on protected grounds.
  • Establish selection pools of employees doing similar roles.
  • Score employees against criteria with at least two managers to ensure objectivity.
  • Allow employees to challenge scores and provide additional information during consultations.

redundancy pay

Notice Periods and Redundancy Pay

  • Statutory notice: one week for service of one month–two years; one week per year for two–12 years; capped at 12 weeks for 12+ years.
  • Statutory redundancy pay for 2+ years’ service: half-week’s pay (under 22), one week’s pay (22–40), 1.5 week’s pay (41+), capped at 20 years’ service.
  • Employees remain employed during consultation.

Supporting Affected Employees

  • Offer reasonable time off for job search and training.
  • If possible provide CV workshops, counselling or outplacement services.
  • Explore redeployment to alternative roles and voluntary redundancy options.

Common Challenges With Redundancy Meetings

  • Employee refuses to attend: Offer flexible meeting formats (phone, online meeting) and document all reasonable steps.
  • Insufficient consultation: Rushing meetings or failing to consider employee suggestions risks tribunal claims.
  • Lack of transparency: Not sharing selection criteria or rationale undermines fairness.
  • Poor documentation: Keep detailed records of all meetings, decisions and communications.

How Can Norton Loxley Support You?

Facing redundancies can be daunting, but you don’t have to navigate the process alone. At Norton Loxley, we specialise in guiding SMEs through fair, compliant and empathetic redundancy consultations. Get in touch today for personalised HR support and secure peace of mind.

FAQs on Redundancy Consultation Meetings

What is a redundancy consultation meeting?

A meeting to discuss proposed redundancies, explore alternatives and hear employee views.

Who can accompany you to a redundancy meeting?

A trade union rep or a colleague if you request it; employers should seriously consider reasonable requests.

Do I have to work during the redundancy consultation period?

Yes, you remain employed and should work as usual unless on booked annual leave; flexible arrangements may be agreed.

How long is the consultation period for redundancy?

No minimum for individual redundancies; 30 days for 20–99 redundancies and 45 days for 100+ redundancies before dismissals.

What happens if an employee refuses to attend the consultation meeting?

Offer alternative formats (phone, remote or written submissions), explain the importance and document all efforts to engage.

What questions should I prepare for during redundancy consultations?

As an employer, make sure you can confidently answer questions about selection criteria, alternative roles, support options, timeline and calculation of redundancy pay.

How long does a redundancy process take?

Typically 3–6 weeks for small exercises; 6–8 weeks for larger collective redundancies, depending on consultation periods.

What occurs at a second consultation meeting?

Review feedback from the first meeting, discuss counter-proposals and any adjusted selection decisions before finalising redundancies.