News

A Legal Guide to Managing Redundancies Fairly

22nd October 2025

Redundancies are never easy, for employers or employees. But when handled correctly, they can be a necessary and fair part of business restructuring.

Missteps, however, can lead to costly tribunal claims and reputational damage.

Sarah Everton, Head of Employment Law at Myers & Co, outlines the key legal principles and practical steps employers must follow to manage redundancies fairly.

What Makes a Redundancy Fair?

A redundancy is considered fair when it meets two criteria:

• There are genuine business reasons, such as reduced workload, closure, or restructuring.
• The employer follows a fair and transparent process.

Failure to meet either can result in claims of unfair dismissal, discrimination, or breach of contract.

Key Legal Obligations

Employers undertaking redundancies must adhere to strict legal obligations to ensure fairness and minimise risk.

The following essential steps are designed to help businesses navigate redundancy procedures correctly and lawfully:

• Consultation: Employers must consult with affected employees individually and, where 20 or more redundancies are proposed, collectively with trade unions or employee representatives. Voluntary redundancies must still be counted towards the threshold.
• Selection Criteria: Use objective, non-discriminatory criteria. Avoid outdated methods like “last in, first out”, which may lead to age discrimination claims.
• Consider Alternatives: Before proceeding, explore options such as reduced hours, redeployment, or changes to duties. These may help retain talent and avoid legal risk. Following the correct legal steps for redundancy dismissal can protect your business from future claims.
• Support for Absent Employees: Employees on furlough, sick leave, or maternity leave must be included in consultations and scoring. Adjustments may be needed to ensure fairness and compliance with employment law redundancy.
• Employees who are pregnant, on maternity or adoption leave, or who have recently returned to work from such leave have additional protection in redundancy situations.

By following these key legal obligations, businesses can help ensure that redundancies are managed fairly and in accordance with employment law.

Common Pitfalls to Avoid

While following the correct procedures is essential, many employers still fall foul of common mistakes during the redundancy process. These include:

• Poor Documentation: Keep detailed records of consultations, scoring, and decisions.
• Inadequate Communication: Be transparent and empathetic throughout the process.
• Ignoring Legal Advice: Redundancy law is complex—seek guidance early to avoid missteps.

By steering clear of these frequent errors, employers can help safeguard their business against tribunal claims and support employees more effectively during a challenging time.

How Myers & Co Can Help?

If you’re considering redundancies and want to ensure the process is fair and legally sound, we’re here to help.

Our employment law team can guide you through your obligations, advise on consultation and selection procedures, and support you in minimising legal risk.

Contact Sarah Everton today

If you require guidance on employment law matters, don’t hesitate to contact Sarah Everton. Call us today or submit a quick enquiry.