How to make someone redundant properly (and stay out of the tribunal)
Redundancy is hard enough as a human decision. As a legal one, it's unforgiving of shortcuts — and the shortcuts are exactly what a rushed, stressed employer reaches for.
By Robert Festenstein, Head of Legal
Updated 1 July 2026
7 min read
The short version
- Redundancy has a specific legal meaning — the role must genuinely be disappearing, not just the person.
- A fair, documented process is what protects you: consultation, warning, and a chance to respond.
- Selection must be done on fair, objective criteria — never on who you'd rather keep.
- Employees with two years' service are generally entitled to statutory redundancy pay and proper notice.
Is it a genuine redundancy?
Start here, because a lot of "redundancies" aren't. In law, redundancy means the job is disappearing — the business is closing, the workplace is closing, or you genuinely need fewer people doing that kind of work. It does not mean "I want to replace this particular person," or "we've had a falling-out." If what you actually want is to remove an individual and then hire someone else into the same role, that's not a redundancy, and dressing it up as one is a fast route to an unfair dismissal claim.
Fair process is the whole game
Here's the thing that trips people up: you can have a completely genuine redundancy and still lose a claim, purely because of how you handled it. A fair process means warning affected staff, consulting them properly (a real conversation about the situation and the alternatives, not a done deal announced), considering whether there's any suitable alternative role, and giving people a chance to respond before any final decision. Larger-scale redundancies bring extra collective consultation duties on top. Rush it, skip the consultation, or present it as a fait accompli, and a genuine redundancy becomes an unfair dismissal.
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Selecting fairly
If you're reducing headcount within a group of similar roles, how you choose who goes has to be fair and objective. That means a proper "pool" of at-risk employees and selection criteria that can be measured and defended — skills, experience, performance records — applied consistently. What you cannot do is select on gut feel, or on anything that strays into discrimination (age, pregnancy, someone who's recently raised a grievance). If your selection can't be explained on paper to a stranger, it isn't safe.
Notice and redundancy pay
Employees with at least two years' continuous service are generally entitled to statutory redundancy pay, calculated from their age, length of service and weekly pay, plus their proper notice (or pay in lieu). You can always offer more, and an enhanced package is sometimes worth it — particularly where it's wrapped into a settlement agreement that gives you certainty and a clean line. Get the figures and the process right and a difficult decision stays a fair one.
Frequently asked questions
Can I make someone redundant to replace them with someone else?
No. Redundancy means the role is genuinely disappearing. If you're removing a person but keeping the job and hiring someone else into it, that's not a redundancy — and treating it as one is likely to be an unfair dismissal. If your real issue is with the individual, that's a different process.
Do I have to consult before making someone redundant?
Yes. Even for a single redundancy, a fair process requires genuine consultation — warning the employee, discussing the situation and any alternatives, and giving them a chance to respond before you decide. Larger redundancies carry additional collective consultation obligations. Skipping consultation is one of the most common reasons redundancies are found unfair.
How is redundancy pay calculated?
Statutory redundancy pay is based on the employee's age, length of continuous service (from two years) and weekly pay, up to statutory limits. Notice pay is separate. You can offer an enhanced package, and often it makes sense to document an agreed exit in a settlement agreement — take advice on the figures for your situation.
Sources & further reading
This article is general information, not legal advice. The law changes and depends on your circumstances — always take advice on your specific situation before acting. Last reviewed 1 July 2026. Buzz Solicitors is a trading name of AD Solicitors Limited, a recognised body regulated by the SRA (no. 8011228).
A solicitor with more than two decades' experience in commercial law, dispute resolution, insolvency and judicial review. Robert acts for businesses, directors and individuals on the matters that carry real consequence — and leads Buzz Solicitors.
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