Letting People Go With Your Head — and Your Heart — Held High
A practical guide for UK business owners navigating redundancy the right way.
Nobody starts a business hoping to one day sit across from a member of their team and tell them their job no longer exists. But for many business owners, it’s an unavoidable reality. And how you handle it matters — far more than most people realise.
Done badly, redundancy leaves lasting scars: on the people leaving, on the people staying, and on your reputation as an employer.
Done well, it can be handled with dignity, transparency, and even a measure of trust intact.
Here’s how to get the legal bits right — and the human bits too.
First, make sure it’s genuinely redundant
This might sound obvious, but it’s where many employers come unstuck. A redundancy must be real. If you make someone redundant and then hire someone else into essentially the same role shortly afterwards, you’re likely looking at an unfair dismissal claim.
Legally speaking, redundancy exists when a business closes, a specific workplace closes, or the need for employees to do a particular kind of work has reduced or ceased. If none of those apply, it’s not redundancy — full stop.
Know your legal obligations
UK employment law sets clear minimums. Here’s a quick summary of what you’re required to do:
• Consult individually with each employee at risk of redundancy — this isn’t just a courtesy, it’s a legal requirement.
• If you’re making 20 or more people redundant within 90 days, you must begin collective consultation at least 30 days before the first dismissal (45 days if 100 or more).
• Pay statutory redundancy pay to any employee with two or more years’ continuous service. From April 2025, weekly pay is capped at £719, and the maximum statutory payment is £21,570. These figures will likely change from 6 April 2026.
• Explore suitable alternative roles before making anyone redundant — you must make a genuine effort to redeploy people where possible.
• Give proper notice: the statutory minimum is one week per year of service (up to 12 weeks), though contracts may require more.
For full details on statutory redundancy pay calculations, see: gov.uk/calculate-your-redundancy-pay
The consultation: it’s not a box-ticking exercise
The consultation process is where many businesses lose the plot. They schedule a meeting, tell the employee what’s happening, and call it done. That’s not consultation — that’s notification.
Real consultation means going in with an open mind. The outcome shouldn’t be fixed before the conversation starts. You need to genuinely consider any alternatives the employee raises, explain your reasoning, and give them time to respond. This can feel uncomfortable, especially in a small business where relationships are close. But it’s both legally required and, frankly, the decent thing to do.
The human side: don’t underestimate it
Beyond the legal requirements, there’s a bigger question: how do you want the people leaving your business to feel? And how do you want the people staying to see you?
A few things go a long way:
• Be honest about why it’s happening. People can handle difficult news far better when they’re treated as adults and given a straight explanation.
• Give people time to absorb the news before asking them to make decisions. Don’t rush the process unnecessarily.
• Offer practical support where you can — whether that’s a strong reference, flexible hours during the notice period to attend interviews, or a frank conversation about what they’re good at.
• Keep the conversation private. Finding out your role is at risk through the office grapevine is mortifying and unnecessary.
• Check in. A redundancy process can span several weeks. Don’t just issue a letter and go quiet.
And for the team members who remain: they’re watching how you treat their colleagues. If the process feels cold, secretive, or rushed, it erodes trust with the people you still need.
A word on the Employment Rights Bill
It’s worth flagging that the employment law landscape is changing. The UK’s Employment Rights Bill is working its way through Parliament, and one significant proposed change is reducing the qualifying period for unfair dismissal claims from two years to just six months. This is expected to come into effect over the coming years.
The direction of travel is clear: employee protections are strengthening. Getting your redundancy process right today isn’t just good practice — it’s future-proofing your business.
Need help navigating a redundancy process?
Whether you’re facing your first redundancy situation or dealing with something more complex, we’re here to help you do it right — legally, practically, and with the care it deserves. Get in touch with our team today.
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