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Why early advice matters
By the time employees are told they are at risk of redundancy, many of the most important decisions may already have been taken. If the business case is unclear, the pool of available staff is too narrow, the criteria are difficult to defend or consultation begins too late, then the process can become much harder to protect.
Early advice helps employers test whether redundancy is the right route, identify the main risk points and make sure the process is fair as well as commercially workable.
Managing restructuring and redundancies lawfully
Business change can put employers under real pressure. Costs may need to be reduced, teams may need to be reorganised, or a site, department or function may no longer be viable in its current form. In those circumstances, it is important to move quickly enough to make sensible commercial decisions, but not so quickly that costly legal implications are overlooked.
Redundancy generally applies where a business is closing, a workplace is closing, or there is a reduced need for employees to carry out work of a particular kind. If the work still needs to be done and the real issue is something else, then the business may be dealing with a performance, conduct or contractual issue rather than a genuine redundancy situation.
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Genuine redundancy and the business case
A redundancy process is far easier to defend where there is a clear and documented reason for it. That may be a closure, a relocation, a reduction in the amount of a particular kind of work, or a wider reorganisation that changes the roles the business needs. The rationale should be capable of explanation, because it may later be scrutinised if a claim is brought.
Restructuring can be wider than redundancy; a business may be changing reporting lines, duties, terms or location without actually reducing headcount. That is one reason it is important to be clear about the aims of the process and whether redundancy is the right approach.
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Consultation and fair selection
Consultation needs to be genuine and take place before decisions are finalised; if it does not, any resulting dismissals are at risk of being unfair. Selection also needs care. Employers should use an appropriate pool and criteria that are as objective as possible, with particular caution around absence, pregnancy and disability-related issues.
Collective consultation may be required where 20 or more redundancies are proposed within 90 days, and a failure to consult can lead to a significant protective award.
TLW Solicitors can help employers plan consultation at the right stage, prepare the correct documents and communications used during the process, review selection criteria, and reduce the risk of the exercise being challenged later as unfair or procedurally flawed.
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Alternatives and Protected Employees
Alternative options and suitable roles
Before moving to dismissal, employers should consider whether there is another way forward, such as redeployment, reduced hours, recruitment freezes or other measures short of redundancy. Where a suitable alternative role exists, it should usually be offered rather than left open for employees to apply for themselves, and a four-week trial period may apply.
Protected employees
Some employees need particularly careful treatment in a redundancy exercise. Pregnant employees and some new parents have priority for suitable alternative vacancies where the law applies, and ACAS says the protection can continue for 18 months after birth in certain cases. Selection criteria also need to be handled carefully, where pregnancy, maternity or disability could otherwise distort the scoring.
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How TLW can help
TLW Solicitors can help employers plan and manage redundancy and restructuring exercises in a way that is both practical and legally defensible. That may involve testing whether redundancy is the right route, reviewing the business case, advising on consultation and selection, or helping the business decide whether redeployment, settlement or dismissal is the better option.
Our role is to help businesses manage change in a way that reduces avoidable risk and supports clear, pragmatic and defensible decision-making.
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Restructuring and Redundancies FAQs
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What counts as a genuine redundancy?
A genuine redundancy usually happens where the business is closing, a workplace is closing, or there is a reduced need for employees to carry out work of a particular kind. If the work still needs to be done and the issue lies elsewhere, such as performance or disciplinary matters, redundancy may not be the right solution.
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Does every restructure involve redundancy?
No. A restructure may involve changes to duties, reporting lines, location or terms without creating a genuine redundancy situation. It is important to be clear about the reason for the exercise before starting a redundancy process.
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Do employers always need to consult?
Yes, consultation is a key part of a fair process. If 20 or more redundancies are proposed at one establishment within 90 days, collective consultation rules apply as well as individual consultation.
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When is an HR1 form needed?
An HR1 form is required where 20 or more redundancies are proposed at one establishment within a 90-day period. It must be submitted to the Redundancy Payments Service, and the timing depends on the number of proposed redundancies.
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How should employees be selected?
Selection should be fair, consistent and based on objective criteria as far as possible. Similar roles should usually be pooled together, and the criteria must be applied carefully to avoid discrimination.
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Do employers have to look for alternative roles?
Yes. Employers should try to identify suitable alternative employment within the organisation before confirming redundancy. If a suitable role exists, it should usually be offered rather than left open for employees to apply for.
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What payments are usually due on redundancy?
That will usually include statutory redundancy pay for eligible employees, notice pay and accrued but untaken holiday pay. Contractual or enhanced redundancy terms may also apply in some cases.
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Can a pregnant employee or someone on maternity leave be made redundant?
Potentially, yes, but the situation needs careful handling. The redundancy must be genuine, and suitable alternative vacancies must be offered as a priority where the law requires it.
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What counts as a genuine redundancy?
Clear advice when business change affects your workforce
If your business is considering redundancies or a wider restructure, early advice can help you test the process, reduce risk and make robust and legally defensible decisions.
