Business Owners’ Guide to Redundancy

Perfect HR specialises in up-to-date advice in employment law for Business Owners, Directors and Employers.
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Redundancy can be a problem for any business owner.

A lot of questions may come up such as: Who, what and when to make redundancies? What is the correct procedure? Do I have to hold redundancy consultation meetings? Am I going to do it correctly? Who and what type of letters and meetings are required?

Here at Perfect HR we can answer all your questions regarding employment law as well as guide, help and support you through to your result, making sure you always follow the Acas Code of Practice.

You will find on the internet many companies that offer you this advice. But be sure to ask yourself a question – is the advice up-to-date?

Employment law and employers’ advice on redundancies has be done in a correct way otherwise you may face an employment tribunal.

Tips for Employers

So here are a few tips to help you on your way.


‘Make sure your making the position redundant and not the employee’


You the Owner, Director or Employer must go through a consultation period with employees when making redundancies.


Make sure you use the correct wording on letters etc.


Do not fall into the trap of last in first out, as this may lead to an employment tribunal.

Reasons for Redundancy

When making a position redundant you must have good business reasons for redundancy such as, financial or certain work is no longer required. etc.
Statutory Redundancy Notice Periods

There is a requirement within the Acas Code of Practice on statutory redundancy notice periods which are:

  • at least one week’s notice if you have been employed between one month and two years.
  • one week’s notice for each year if employed between two and 12 years.
  • 12 weeks’ notice if employed for 12 years or more.
Statutory Redundancy Pay

Employees are normally entitled to statutory redundancy pay if they have been working for you for 2 years or more.

They will be entitled to:

  • half a week’s pay for each full year they were under 22
  • one week’s pay for each full year they were 22 or older, but under 41.

Before you start a redundancy process, consider the alternative options you could use such as changing job roles, days and hours of work to reduce or prevent redundancies.  This will create goodwill with your work force, knowing you are trying to save their jobs.

You may want to offer voluntary redundancy – you can ask your employees if they would consider these options. Don’t single out any specific individuals otherwise you could be accused of discrimination, and remember a voluntary redundancy is still a dismissal unless it’s the only employee in the job role you are looking to make redundant.


Prior to your selection make sure all your employees are aware of what you the business Owner, Director or Employer require and make sure all your consultation meetings and letters regarding redundancy are transparent and correct, as this will help you avoid a tribunal.  

Once you have selected the candidate/s make sure you have all your correct notes together with an exit interview meeting to the employee/s.

Further Support from Perfect HR

Sometimes you just need to speak to an HR professional or have one by your side.  Perfect HR provides that in-person support for small business owners.  A member of the Perfect HR team can be there with you at a potentially difficult meeting with an employee or to guide you through a process.  Our expertise and support brings you confidence and peace of mind.

Contact us today at or call 020102010202.


Access to our document library with template letters, example documents and guidance.


An email helpline and support for HR questions and issues;


Two telephone advice calls per month (extra calls are charged at £10 +vat for each additional phone call thereafter)


Employment legislation and document updates as and when they occur;


Download further Employment Contracts as and when you hire more staff;


Help with the full process of hiring, from drafting an application form, interview letters, offer letters etc.;


Tribunal Legal support.

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