Redundancy Policy & Procedure template

2. Policy statement

Redundancy is a last resort at {{org.name}}. Where a genuine redundancy situation arises — a closure, a restructure, or a reduced need for particular work — we will consult openly, select fairly against objective criteria, look hard for alternatives, and treat everyone affected with honesty and respect throughout.

3. What redundancy means

A redundancy situation exists where {{org.name}} closes all or part of the business, closes or moves a workplace, or needs fewer employees to do work of a particular kind. Redundancy is about the role, not the person: performance and conduct concerns are dealt with under the capability and disciplinary policies, never disguised as redundancy.

4. Avoiding redundancies first

• Freezing recruitment and not renewing temporary or agency arrangements.
• Restricting overtime and reviewing contractor spend.
• Redeploying affected employees into vacancies elsewhere in {{org.name}}.
• Inviting volunteers for redundancy, on terms set by [senior role] — {{org.name}} reserves the right to decline a volunteer where their skills are needed.
• Considering reduced hours or other pattern changes, by agreement.

5. Consultation

Every employee at risk is consulted individually before any final decision: what is proposed and why, the provisional pool and criteria, ways to avoid or reduce redundancies, and their suggestions — considered genuinely, with responses given. Consultation happens while options are still open; a decision announced as final and consulted afterwards is not consultation.

At-risk employees are told in writing that they are at risk, invited to [number] or more consultation meetings, and may be accompanied by a colleague or trade union representative. Where proposals affect larger numbers, {{org.name}} will follow the collective consultation rules that apply — see current official guidance — including electing representatives where required.

6. Selection pools and criteria

Where fewer roles remain than people who could fill them, [senior role] defines the selection pool — everyone doing the same or materially interchangeable work — and records the reasoning. Selection uses objective, evidence-based criteria such as [skills and qualifications relevant to remaining work, verified performance records, disciplinary record], scored independently by [two managers] and moderated by [role].

Criteria are checked for discrimination risk before use: absence and performance records are adjusted so that disability-related or pregnancy-related absence does not disadvantage anyone, and no criterion may rest on a protected characteristic under the Equality Act 2010. Employees see their own scores and may challenge them in consultation.

7. Alternative employment and trial periods

All vacancies across {{org.name}} are shared with at-risk employees through the consultation period, and suitable alternatives are offered before notice is confirmed. An employee who accepts a suitable alternative role is entitled to a statutory trial period in it — check current guidance for its length and how it can be extended. [Employees on maternity or certain family-related leave have priority rights to suitable alternative vacancies — {{org.name}} applies the current statutory rules.]

8. Notice, redundancy pay and appeals

Employees selected for redundancy receive written confirmation of the decision, their notice period — contractual or statutory, whichever is greater — and their redundancy payment calculation. Qualifying employees receive at least statutory redundancy pay; current qualifying rules and rates are on GOV.UK, and [any enhanced terms: [details]]. Reasonable paid time off to look for work is given during notice in line with current guidance.

Anyone selected may appeal in writing to [senior role not previously involved] within [number] working days, and the appeal decision is final.

9. Records and review

Business case documents, consultation notes, pool definitions, scoring records, vacancy searches, and appeal outcomes are retained in [system] for [period] — they are the evidence that the process was fair. Departing employees are offboarded under the exit and leaver procedure.

This policy is reviewed [frequency, e.g. annually] and before the start of any redundancy exercise. Owner: [name/role]. Next review due: [date].