{"id":1420,"date":"2022-01-10T01:46:34","date_gmt":"2022-01-10T01:46:34","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1420"},"modified":"2022-11-21T04:15:18","modified_gmt":"2022-11-21T04:15:18","slug":"make-employee-redundant","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/make-employee-redundant\/","title":{"rendered":"How Do I Make An Employee Redundant in the UK?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">As an employer, you may end up in a situation where you need to make an employee redundant. This is often difficult for both you and your employee, where redundancy may not be a welcome option for either party. It is, therefore, essential that you are fully aware of the process to make an employee redundant.&nbsp; Getting it right can help the process run smoothly and help you to avoid unwanted situations, for example, your employee bringing a claim against you in an employment tribunal.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">This article will explain how to make an employee redundant. It will outline the rules associated with redundancy and guide you through the process.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What is Redundancy?<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">If you no longer need an employee to work for you, you may dismiss them. This process is <\/span>call<span style=\"font-weight: 400\">ed redundancy.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">There are many scenarios in which you may need to make an employee redundant. These include when:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">your business is shutting down or moving to a different area;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">the nature of what your business does has changed; or<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">your business is taking a different approach to how it carries out its function.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">It is essential that, as an employer, you make every effort to avoid making your employees redundant. This includes finding your employee a different job within the business. Redundancy should be a final option.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">How Do I Make an Employee Redundant?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you need to make your employee redundant, you must show that the redundancy is genuine. This means that you must be able to demonstrate that the employee&#8217;s job is no longer in existence.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Where an employee has worked for at least two years before the potential redundancy date, you must ensure you carry out a fair redundancy process with them, which should include at least one meeting to discuss the redundancy.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">There are several steps you should take as an employer, which are detailed below.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. <span style=\"font-weight: 400\">Consult With Employees<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Before going ahead and finalising the decision that you will be making redundancies, you must consult with employees. If you do not, y<\/span>our employee may deem their <span style=\"font-weight: 400\">r<\/span>edundancy<span style=\"font-weight: 400\"> unfair, and you could find yourself faced with an employment tribunal.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">You must conduct a consultation to identify ways to avoid redundancy, but there are no rules to say that it must reach such a result.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">There are no rules about carrying out a consultation if you make less than 20 redundancies. If you are making 20 or more redundancies, you must follow a set procedure termed the <a href=\"https:\/\/www.gov.uk\/staff-redundant\/redundancy-consultations\">\u2018collective consultation\u2019 rules<\/a>. &nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. <span style=\"font-weight: 400\">Decide the Redundancy Pay<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Unless your employment contracts state a higher amount or you wish to pay more, you must pay employees who have worked for you at least two years the minimum statutory pay. This is based upon:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">the age of an employee; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">the length of time they have worked for you &#8211; but not counting anything over 20 years.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/employment\/calculate-redundancy-pay\/\">Statutory redundancy pay<\/a> is capped at a maximum amount of \u00a3544 per week and a total of \u00a316,320.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The simplest way to work out your employee\u2019s redundancy pay is to use the <\/span><a href=\"https:\/\/www.gov.uk\/calculate-employee-redundancy-pay\"><span style=\"font-weight: 400\">government calculator<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. <span style=\"font-weight: 400\">Confirm if the Redundancy Is Compulsory or Non-Compulsory<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">Compulsory redundancy is where an employer has decided that employees will be made redundant, and so they will need to decide which employees will be affected. You must choose fairly, so as not to discriminate during this process.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Fair criteria for selection might include taking into account:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">skills and abilities;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">attendance and discipline records;&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\"><a href=\"https:\/\/legalvision.co.uk\/employment\/poor-performance\/\">how well an employee is performing<\/a>; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">the length of time with your business. When including this, be cautious that it does not negatively affect one group of people as this could be indirect discrimination. Make sure it is used with other criteria, as if used on a stand-alone basis, it could be seen as <a href=\"https:\/\/legalvision.co.uk\/employment\/employment-discrimination\/\">age discrimination<\/a>.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Unfair criteria for selection could be, for example, taking into account:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">a disability;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">a pregnancy or pregnancy-related reason;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">being part-time; or<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">a role as a trade union representative.<\/span><\/li>\n<\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">Non-compulsory redundancy can be either voluntary or early retirement. &nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><span style=\"font-weight: 400\">Voluntary Redundancy&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">This is where an employer asks which employees would like to take redundancy and then carries out a fair and transparent selection process when making the final decisions.<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Early Retirement<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">Where an employer offers every employee this option.&nbsp;<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">4. <span style=\"font-weight: 400\">Give Employees Notice and Notice Pay<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">After the consultation period, regardless of which type of redundancy you select, you must give those employees being made redundant statutory notice of their dismissal. This means giving them:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>a <span style=\"font-weight: 400\">minimum of one week where an employee has worked between one month and two years;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">one week per year of employment where an employee has worked between two years and 12 years; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">12 weeks where an employee has worked for 12 years or more.<\/span><\/li>\n<\/ul>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">If you want to allow an employee to leave before the statutory notice period, they can do so, providing you offer payment in lieu of notice.<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">You are required to give your employees notice pay where they are not giving payment in lieu of notice. This will be based on the employee&#8217;s average earnings over the 12 weeks before you give them their notice.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Redundancy Appeals Process<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You are not required by law to offer your employees a redundancy appeals process, but it is good practice to have this available. If you do choose to have one, this should be set out in any redundancy policy you may have.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">An appeals process should have:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">a timescale for an employee to submit an appeal;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">a meeting to discuss the redundancy &#8211; they may bring a representative, and a senior member of your staff who was not part of the redundancy process should be present; and&nbsp;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">a swift decision at the end.<\/span><\/li>\n<\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl 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Under these, an employee:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">may be entitled to redundancy pay;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">should be given a chance to look for new work through reasonable time off their current job where they are under notice of redundancy;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">should not be selected for redundancy unfairly where they are under notice of redundancy; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">should have any time on furlough included as though they are earning as usual when working out their notice period.<\/span><\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">As an employer faced with making employees redundant, you must ensure that you carry out a fair redundancy process. You must carry out specific processes such as giving the proper redundancy notice and pay and carrying out a specified consultation process where you are making 20 or more redundancies. You should also have processes in place for good practice, such as an appeals process.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help understanding how to make an employee redundant, our <a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\">experienced employment lawyers<\/a> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\"> membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1641774462042\"><strong class=\"schema-faq-question\">What types of redundancies can an employer make?<\/strong> <p class=\"schema-faq-answer\">An employer can make compulsory or non-compulsory redundancies. The former is where a certain amount of employees are made redundant, and the employer needs to select them fairly. The latter could be voluntary redundancy where employees volunteer, and then the employer fairly selects, or early retirement which an employer must make available to all staff.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1641774479274\"><strong class=\"schema-faq-question\">Does an employer have to include an appeals process when making employees redundant?\u00a0<\/strong> <p class=\"schema-faq-answer\">An employer does not have to carry out an appeals process when making redundancies, but it is good practice to do so.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1420\" \/>            <input value=\"https:\/\/legalvision.co.uk\/employment\/make-employee-redundant\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How Do I Make An Employee Redundant in the UK?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As an employer, you may end up in a situation where you need to make an employee redundant. This is often difficult for both you and your employee, where redundancy may not be a welcome option for either party. It is, therefore, essential that you are fully aware of the process to make an employee<a href=\"https:\/\/legalvision.co.uk\/employment\/make-employee-redundant\/\">Continue reading <span class=\"sr-only\">&#8220;How Do I Make An Employee Redundant in the UK?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":620,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"2052,2243,1621,2273,879,2339","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,232,291],"class_list":["post-1420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-employment","tag-redundancy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do I Make An Employee Redundant? | LegalVision UK<\/title>\n<meta name=\"description\" content=\"This article will explain how to make an employee redundant in the UK. 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