How to Undertake a Consultation Period for Redundancy in the UK

02Sep

Introduction the Consultation Process

Redundancy is one of the most difficult situations an organisation can face. It impacts individuals deeply and can also affect morale, trust, and productivity across the wider team. For employers, handling redundancy fairly, legally, and sensitively is critical.

A central part of this is the consultation process for redundancy. In the UK, the law requires employers to consult with employees before final redundancy decisions are made. But beyond legal compliance, effective consultation ensures that employees feel respected, heard, and supported during a difficult time.

At Wright People HR, we work with organisations to navigate the redundancy consultation process in a way that balances business needs with fairness and compassion. Here’s a clear guide to what the redundancy consultation period involves, and how to manage it step by step.

What is a Redundancy Consultation Period?

The redundancy consultation period is the time during which employers and employees meet to discuss proposed redundancies. The purpose is to:

  • Explain the reasons for the potential redundancies.
  • Explore alternatives to redundancy.
  • Discuss the criteria for selection.
  • Allow employees to put forward their views, suggestions, and concerns.

It is not just a formality. The employee consultation process requires employers to genuinely consider employee feedback and alternatives before final decisions are made.

Legal Requirements: Individual vs. Collective Consultation

The length and format of the consultation period for redundancy depends on how many redundancies are proposed:

  • Fewer than 20 employees at one establishment: There is no fixed minimum period, but consultation must still be meaningful and reasonable.
  • 20–99 redundancies: At least 30 days consultation before the first dismissal takes effect.
  • 100 or more redundancies: At least 45 days consultation before the first dismissal takes effect.

This is known as collective consultation, and it involves consultation with employee representatives or trade unions as well as individual meetings.

The Redundancy Consultation Process: Step by Step

  1. Preparation

Before starting the redundancy consultation process, employers need to:

  • Define the business case for redundancy.
  • Identify the roles at risk, not individuals at this stage.
  • Prepare clear information for employees, including reasons, selection criteria, and timelines.

Being prepared ensures that communication is clear and that the process is seen as transparent and fair.

  1. First Consultation Meeting

The first meeting is where the employer outlines the situation. This is the start of the redundancy consultation period. Typical elements include:

  • Explaining the business rationale.
  • Outlining which roles are at risk and why.
  • Describing the selection process and criteria.
  • Highlighting possible alternatives (redeployment, reduced hours, voluntary redundancy).
  • Allowing questions and clarifying next steps.

The aim is to inform and start a dialogue, not to confirm decisions.

  1. The Employee Consultation Process 

After the first meeting, there should be an opportunity for employees to consider the proposals, ask questions, and offer alternatives. This may include:

  • Suggesting cost-saving measures other than redundancies.
  • Discussing redeployment into other roles.
  • Requesting additional clarification about selection criteria.

The consultation process requires employers to genuinely engage with these ideas and show that they have been considered.

  1. 2nd Redundancy Consultation Meeting 

A 2nd redundancy consultation meeting is typically held to:

  • Respond to feedback from the first meeting.
  • Confirm whether any changes to proposals have been made.
  • Discuss individual selection outcomes (if relevant).
  • Explore suitable alternative roles in the business.

This meeting is particularly important for demonstrating that consultation has been genuine, not a tick-box exercise.

  1. Final Consultation Meeting

In some cases, a third meeting is appropriate, particularly for individual consultations. This is where:

  • The outcome of the process is confirmed.
  • If redundancy is unavoidable, the employer confirms notice periods, redundancy pay, and next steps.
  • Support is offered – such as outplacement advice, reference letters, or wellbeing support.

Only after the consultation has been completed can final redundancy notices be issued.

Good Practice for the Redundancy Consultation Process

While the law sets minimum requirements, employers should go further to ensure the consultation process is fair, compassionate, and professional. Best practice includes:

  1. Clear Communication

    • Avoid jargon, be open about reasons, and share information in writing.

  2. Consistency

    • Ensure all employees at risk receive the same information and opportunities.

  3. Fair Selection Criteria

    • Use objective, evidence-based measures (e.g., skills, qualifications, performance) rather than subjective opinions.

  4. Support for Employees

    • Provide access to employee assistance programmes, career advice, or counselling.

  5. Documentation

    • Keep clear notes of each meeting to demonstrate fairness and compliance.

Common Redundancy Process Mistakes to Avoid

Employers sometimes trip up during the redundancy consultation process. Common mistakes include:

  • Treating consultation as a tick-box exercise rather than a genuine dialogue.
  • Rushing the process or not allowing enough time for feedback.
  • Failing to properly document discussions and decisions.
  • Confusing “roles” with “people” – redundancy applies to roles, not individuals.
  • Not considering alternatives such as redeployment or reduced hours.

These mistakes not only damage trust but can also expose businesses to unfair dismissal claims.

Supporting Employees Through Redundancy

Redundancy is tough. Beyond following the law, employers should act with empathy. Steps to support employees include:

  • Providing access to wellbeing and mental health support.
  • Offering flexible time to attend interviews.
  • Giving detailed information about redundancy pay, notice, and entitlements.
  • Ensuring managers are trained in having difficult conversations or involving a specialist third party, such as Wright people HR as your HR consultants.

Handled well, even employees who leave will feel respected and treated fairly – which also protects the organisation’s reputation.

Conclusion

The redundancy consultation period is more than a legal requirement; it is a vital process for treating employees with fairness and dignity during a difficult time.

A well-managed employee consultation process ensures transparency, gives employees a voice, and reduces the risk of legal challenge. From the first consultation meeting through to the 2nd redundancy consultation meeting and final discussions, every stage should be handled with care.

For employers, the goal should be to balance business realities with compassion and fairness. When the consultation process for redundancy is carried out properly, it not only meets legal requirements but also maintains trust and morale at a time when people need it most.

Contact us today to discuss how we can assist your organisation.