Redundancy Policy Template (UK)

Ensure UK compliance, minimise risk, and provide clarity for employees and management with our professionally drafted Redundancy Policy Template (UK). This UK redundancy policy template provides a robust framework for employers to manage redundancy processes fairly, transparently, and in line with UK employment law.

Suitable for HR teams, legal advisers, and company directors, this policy aligns with the Employment Rights Act 1996 and the Trade Union and Labour Relations (Consolidation) Act 1992, ensuring legal compliance and reducing potential claims.

Why Use This Redundancy Policy Template?

• Clear Legal Framework: Outlines procedures, eligibility, and consultation requirements to ensure compliance with UK redundancy laws.

• Fair & Transparent: Sets clear criteria for redundancy selection, notice periods, and employee consultation.

• Practical & Customisable: Editable format allows you to tailor it to your organisation’s size, sector, and internal procedures.

• Risk Mitigation: Minimises the likelihood of claims for unfair dismissal, discrimination, or breach of employment contracts.

• Professional Drafting: Written in solicitor-style language suitable for HR, corporate counsel, and legal advisers.

Who Should Use This Template?

• HR managers and teams implementing redundancy procedures

• Company directors and corporate advisers overseeing workforce changes

• Legal advisers drafting or reviewing redundancy policies

• Small and medium enterprises seeking compliant HR documentation

• Organisations with multi-site operations requiring consistent redundancy practices

Key Features

• UK-compliant redundancy procedures referencing the Employment Rights Act 1996 and Trade Union and Labour Relations Act 1992

• Eligibility criteria for redundancy, consultation, and notice periods

• Guidance on selection processes, including objective scoring and fairness principles

• Employee consultation protocols and communication templates

• Calculation of redundancy payments and statutory entitlements

• Dispute resolution guidance to minimise claims and litigation

• Step-by-step process for implementing redundancy fairly and legally

Step-by-Step Instructions

1. Review all employees and roles to identify potential redundancy scenarios.

2. Define selection criteria and document them clearly in the policy.

3. Consult employees individually and collectively as required by law.

4. Issue formal redundancy notices in line with statutory notice periods.

5. Calculate redundancy payments according to statutory requirements or company policy.

6. Document all steps, consultations, and decisions for compliance and record-keeping.

7. Retain executed copies and records in HR files to mitigate risk of disputes or tribunal claims.

Practical Examples

1. A small company reducing its workforce due to declining sales uses this policy to fairly select roles for redundancy while documenting consultation meetings.

2. A medium-sized enterprise consolidating two departments applies the criteria outlined in the policy to ensure objective and legally compliant selections.

3. HR teams consult unions or employee representatives as required under the Trade Union and Labour Relations Act 1992.

4. Directors calculate statutory redundancy payments and communicate them clearly to employees, reducing misunderstandings.

5. Legal advisers review the policy for compliance with Employment Rights Act 1996 and internal HR procedures before implementation.

Risks If Not Used

• Claims for unfair dismissal or discrimination

• Breach of statutory consultation requirements

• Legal disputes over redundancy payments

• Reputational damage from poor HR practices

• Increased HR workload due to ad hoc or inconsistent redundancy processes

FAQs

Q: What is a redundancy policy?
A formal document outlining procedures for employee redundancies, including selection criteria, consultation, and statutory rights.

Q: Is this template enforceable in the UK?
Yes — when properly implemented, it aligns with UK employment law, including the Employment Rights Act 1996.

Q: Can this template be adapted for sector-specific redundancies?
Yes — this UK redundancy policy template is fully customisable, allowing organisations in retail, manufacturing, finance, or services to tailor consultation procedures, selection criteria, and statutory payments to their sector while remaining compliant with UK employment law.

Q: How does this template help prevent legal disputes?
By providing a clear and documented redundancy framework, this UK redundancy policy template ensures transparent communication with employees, consistent selection processes, and compliance with the Employment Rights Act 1996, significantly reducing the risk of unfair dismissal or discrimination claims.

Q: Who should use this redundancy policy?
Employers, HR teams, company directors, and legal advisers managing workforce reductions.

Q: Can it be adapted for all company sizes?
Yes — suitable for SMEs, large corporates, and multi-site operations.

Q: How does this redundancy policy support HR best practices?
A well-drafted UK redundancy policy template provides a clear, step-by-step framework for managing redundancies, ensuring fair treatment of employees, consistency across the organisation, and compliance with statutory obligations. It also supports HR teams in documenting decisions, consulting employees effectively, and mitigating the risk of disputes or tribunal claims.

Q: How often should it be updated?
Regularly, to reflect changes in employment law and statutory redundancy requirements; this version is current for 2026.

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