Guide

Making staff redundant

Last updated: 8 December 2017

Redundancy consultations

If you don't consult employees in a redundancy situation, any redundancies you make will almost certainly be unfair and you could be taken to an employment tribunal.

If you're making 20 or more employees redundant within a 90-day period you must follow 'collective consultation' rules.

If there are fewer than 20 redundancies planned, there are no set rules you have to follow but it's still good practice to consult employees.

Consultation doesn't have to end in agreement, but it must be carried out with a view to reaching it, including ways of avoiding or reducing the redundancies.

Collective consultation

Before a consultation starts, notify the Insolvency Service Redundancy Payments Service (RPS) by filling out form HR1. Instructions on where to send it are on the form.

Download 'Form HR1' (PDF, 48KB)

Download the guidance on how to manage collective redundancies from ACAS.

Download 'How to manage collective redundancies' (PDF,508kb)

Then follow these steps:

  1. Consult with trade union representatives or elected employee representatives - or with staff directly if there are none.
  2. Provide information to representatives or staff about the planned redundancies, giving representatives or staff enough time to consider them.
  3. Respond to any requests for further information.
  4. Give any affected staff termination notices showing the agreed leaving date.

Timescales

There's no time limit on how long a consultation should last, but consultations must start in good time. You can issue redundancy notices as soon as the consultation is complete, but there are minimum periods before they can take effect.

Number of proposed redundancies When consultation must start
20 to 99 30 days before the first redundancy
100 or more 45 days before the first redundancy
You must send in the notification form at the start of the consultation period - if you don't, you'll get a criminal record and can be fined up to £5,000.

Information you must provide to representatives or staff

You must provide written details of:

  • the reasons for redundancies
  • the numbers and categories of employees involved
  • the numbers of employees in each category
  • how you plan to select employees for redundancy
  • how you'll carry out redundancies
  • how you'll work out redundancy payments
Making staff redundant
Redundancy consultations