Redundancy policy template
A redundancy policy is a framework that outlines procedures for fairly managing redundancies, including consultation, selection criteria, and employee support.
- 2 pages / 547 words
- Instantly download as Word / PDF / plain text
- Suitable globally (check local legislation)
Save 1 hour drafting time, and reduce your risk.
Redundancy policy
1 Overview
1.1 This policy sets out [Company]’s approach to dealing with potential redundancies.
2 Scope
2.1 This policy is applicable to all employees of [Company].
General principles
3.1 Although [Company]’s policy is to avoid redundancies wherever possible, the needs of the business may from time to time require a reduction in the overall number of staff employed or organisational changes that result in some employees being made redundant.
3.2 Where this is necessary, we will ensure that:
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the total number of redundancies made is kept to a minimum;
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employees and, where appropriate, their representatives are fully consulted on any proposals and their implementation;
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selection for redundancy is based on clear criteria that will, as far as possible, be objectively and fairly applied;
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every effort is made to redeploy or find alternative work for employees selected for redundancy; and
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support and advice is provided to employees selected for redundancy to help them find suitable work when their employment
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The purpose of a redundancy policy template is to provide a clear and consistent framework for managing the process of redundancies within an organisation.
The policy sets out the procedures to be followed, including consultation with employees and their representatives, selection criteria, and methods of communication. It also outlines the support and assistance that will be offered to employees affected by redundancy, such as training, re-employment opportunities, and severance packages.
The purpose of a redundancy policy template is to ensure that the process of redundancies is fair, transparent, and consistent, and that employees are treated with dignity and respect throughout the process. By having a clear and comprehensive policy in place, employers can minimise the risk of legal challenges and reputational damage and ensure that they comply with relevant legislation and best practice guidelines.
Direction:
Compliance
Compliance
This Redundancy policy template incorporates relevant UK laws and HR standards, including those listed below:
Here are some key UK employment legislation that supports implementing a redundancy policy template:
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The Employment Rights Act 1996 sets out the rights of employees who are made redundant, including the right to a redundancy payment and the right to be consulted before the redundancy takes place.
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The Trade Union and Labour Relations (Consolidation) Act 1992 requires employers to consult with employees or their representatives when proposing to make redundancies.
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The Equality Act 2010 prohibits discrimination on the grounds of age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation in relation to redundancies.
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The Working Time Regulations 1998 require employers to provide notice of termination and any statutory redundancy payment to employees who are made redundant.
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The National Minimum Wage Act 1998 requires employers to pay employees the statutory minimum wage during any notice period and statutory redundancy payment.
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The Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) require employers to consult with affected employees and their representatives when a business is transferred or sold, which may result in redundancies.
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The Employment Equality (Repeal of Retirement Age Provisions) Regulations 2011 abolished the default retirement age, meaning that employers must now objectively justify any mandatory retirement age, which may lead to redundancies.
It is important to note that the above legislation is not an exhaustive list and that the specific legislation that applies to an organization may vary depending on the industry, size, and location of the business.
Frequently Asked Questions
Frequently Asked Questions
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Can I use this Redundancy policy template for small businesses?
Yes. The Redundancy policy template is designed to be flexible and suitable for organisations of all sizes, including small businesses and charities. It follows UK employment law best practice, so even if you don't have an in-house HR team, you can confidently apply it.
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Is this Redundancy policy template compliant with 2025 UK employment law?
Absolutely. All templates are drafted with the latest ACAS guidance and UK employment legislation in mind. We review and update them regularly, so you can be confident they remain compliant.
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Can I customise this Redundancy policy template for my organisation?
Yes, we highlight the areas that you need to update with your own details, and where you need to make decisions to suit your situation. This saves you time and ensures that you meet best practice.
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Do I get instant access to the Redundancy policy template?
Yes. Once purchased, you'll be able to download the Redundancy policy template instantly. Templates are provided in editable Word or Excel format so you can customise them easily, and in PDF format for easy sharing.
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What if I need a full HR toolkit, not just the Redundancy policy template?
If you're looking for broader support, we also offer toolkits and library bundles that include the Redundancy policy template along with other HR templates and policies for fully managing your situation. These may be more cost-effective if you need a complete HR library.
