Employer Redundancy Policy

This policy can be used by an employer who is based in Great Britain to set out their approach to redundancy situations. It is not obligatory for an employer to hold a redundancy policy. It can however be useful for an employer of any size to hold a redundancy policy.

This policy can assist an employer to ensure that redundancies are dealt with in a fair and appropriate manner. An employer may find it useful to be transparent with its workforce regarding its redundancy procedures from the outset of any employment contract. Furthermore, it is important that an employer ensures that they have an appropriate and lawful redundancy procedure. This is because making employees redundant unlawfully may result in the issuing of penalties against the employer in respect of unfair dismissal or discrimination.

The policy will cover a range of factors, including:

• the steps which the employer will take to minimise and avoid compulsory redundancies;
• the overall stages which will be followed during the making of any compulsory redundancies;
• the consultation obligations of the employer;
• the fair representation of employees (via trade unions or employee representatives) during the redundancy process;
• details regarding the selection process for redundancy;
• the commitment that the employer makes to ensure the procedure is fair and that employees shall not be the subject of unlawful discrimination;
• details in respect of redundancy pay; and
• paid leave entitlement to assist redundant employees in securing future employment.

An employer may also find it helpful to hold a separate equal opportunities policy to address its commitment to avoiding unlawful discrimination in the workplace and within its redundancy procedures.

How to use this document

The document should be completed with the relevant information. The employer should ensure that the information placed within the policy aligns with all contractual obligations contained within the respective employment contracts of its employees. Where the employer formally recognises a trade union, such a union should ordinarily be consulted before the policy is finalised and published.

Once the policy has been finalised, the employees should be made aware of its contents. The document should be placed in a place which is accessible to employees, such as the staff handbook or on an intranet portal. The document can be signed on behalf of the employer by an authorised representative (for example the director or manager). Whilst a signature is not a requirement, the employer may choose to do so to illustrate that it has endorsed the contents of the policy.

In the event that the employer considers that redundancies may be necessary, the policy should be adhered to. In those circumstances, the employer may deem that it is necessary to notify a pool of employees that they are at risk of redundancy and thereafter notify the relevant employees of any final selections.

Relevant law

The key legal provisions which are applicable to the policy are:

• The Employment Rights Act 1996
• The Trade Union and Labour Relations (Consolidation) Act 1992
• The Equality Act 2010

Acas (the Advisory, Conciliation and Arbitration Service) also provides guidelines and advice to employers in respect of redundancy.

Help from a lawyer

You can choose to consult a lawyer if you need help.

The lawyer can answer your questions or help you through the process. You will be offered this option when you complete the document.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.