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Employment Law for Businesses

Redundancy Advice for Businesses

Susie Al-Qassab
Susie Al‑Qassab
Partner
Homa Wilson
Homa Wilson
Partner
Neil Emery
Partner

Making staff redundant can be a risky, disruptive and a challenging time for any business. We understand that it's difficult to make staff redundant and that the process should be dealt with delicately.

In addition to demonstrating a genuine redundancy situation, employers are legally required to follow a reasonable and fair procedure for terminating employment on the grounds of redundancy. If specific procedures aren’t followed, this could lead to costly unfair dismissal or contractual claims.

What do you need to do to get advice?

As soon as you realise a role is no longer needed, contact us, and we will guide your business through the process to ensure you’re protected from any legal problems.

Once we understand your situation, our lawyers can advise you of collective redundancies, and those arising through business transfers. We can also advise on and negotiate settlement agreements to finalise severance deals. 

We’ll keep you updated and informed throughout, ensuring that you’re satisfied with the service and outcome.

"THANK YOU SO MUCH FOR ALL YOUR HELP. THANKS FOR STAYING SO CALM AND EXPLAINING EVERYTHING FULLY."

Why choose Hodge Jones & Allen Solicitors?

We understand that businesses need to adapt to succeed and this will sometimes involve restructuring or reducing your workforce. Our expert lawyers have worked with many different industry sectors, helping both large and small companies to steer a path through difficult redundancy processes.

We’ll work with you and your business from an early stage to minimise the risk of any legal action against you. The redundancy process and/or an Employment Tribunal claim can be lengthy and time consuming for you and your colleagues. It can also be costly. We’ll work hard to ensure that you can focus on running your business or performing your role, while still being in control of every stage of the process.

We are independently recognised as leaders in our field who will provide you with specialist advice and representation. If a claim is made against your business, we’ll ensure that it’s robustly defended in a professional and skilled manner.

"HOMA FORMULATED A CLEAR STRATEGY IN ORDER TO DEAL WITH THE MATTER, WHICH RESULTED IN A VERY POSITIVE OUTCOME FOR ME BOTH PERSONALLY AND FINANCIALLY."

Featured case

A business we helped with a redundancy situation

We carefully and successfully steered a small business through the redundancy of a group of employees. This helped in achieving the commercial aims of the business in a sensitive way, by scaling back a team after they lost a key client.

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Frequently asked questions

When can I make redundancies?

Employees can only be dismissed by way of redundancy if there’s a genuine redundancy situation such as if you’re no longer carrying out work of a specific kind.

Is there a process that I need to follow before making any redundancies?

Yes, employers are legally required to follow a fair procedure such as having a fair selection process. If you’re planning on making more than 20 employees redundant at one workplace within a 90 day period, then there are specific requirements that you must follow.

How much will I need to pay my employees for redundancy pay?

If you don’t have an enhanced redundancy scheme, then you’ll need to pay a minimum statutory redundancy pay. This is calculated using length of service, age and weekly pay of your employees

When is a redundancy considered unfair dismissal?

Redundancy is a potentially fair reason for dismissal which employers can rely on when defending Unfair Dismissal claims.

However, an employee may succeed in an Unfair Dismissal claim where an employer has not followed a fair redundancy procedure or where there is no genuine redundancy. The consequences of this for a business shouldn’t be underestimated as a successful Unfair Dismissal claim can have a significant financial impact.

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"YOU HAVE CERTAINLY GONE ABOVE AND BEYOND TO MAKE SURE I KNOW MY RIGHTS AND HAVE CONTINUALLY ENSURED THAT I AM COMFORTABLE WITH ANY DECISIONS THAT HAVE TO BE MADE. I WOULD HAPPILY RECOMMEND YOUR SERVICES."

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