Redundancy Checklist


When making staff redundant there are a number of legal obligations that must be adhered to. 


An employer who is about to undergo a redundancy exercise will need to consider the key points


  1. Consider the business case for making redundancies and consider if there are alternatives measures available instead of making redundancies.
  2. If an employer is dismissing 20 or more employees within 90 days or less the employer must inform the Redundancy Payments Service by completing Form HR1.  This has to be done either 30 days or 90 days before the first dismissal takes place depending on the number of employees involved.
  3. Employers must consult with appropriate representatives of any employees affected where it is proposed at least 20 employees at any one establishment may be dismissed within a 90 day period or less.  This collective consultation is not necessary where fewer than 20 employees are affected but is still worth considering.
  4. There are minimum periods for collective consultation.  When between 20 and 99 redundancies are proposed consultation must begin 30 days before any notice of dismissal is given.  In cases of 100 redundancies or more this is increased to 45 days.
  5. Employers must decide on a selection criteria.
  6. Individual consultations must take place.
  7. When collective and individual consultation periods have closed employers can issue notice of dismissal.  All redundant employees will need to be given the appropriate contractual or statutory notice.
  8. During the redundancy process and whilst employees are working their notice the employer has a duty to continue to consider alternative employment opportunities for the employee.
  9. Once notice has been given an employee with at least two years continuous service has the right to reasonable paid time off to look for work or undertake training.
  10. All employees have the right to appeal against a redundancy decision.
  11. All employees with two years' service at the date of termination of their employment if the reason is redundancy are entitled to a statutory redundancy payment.  This is based on their length of service, age and weekly pay.  Some employers make payments in excess of the statutory redundancy pay if there are contractual redundancy schemes in place.