Redundancy policy template

Overview

This policy sets out [Company]’s approach to dealing with potential redundancies.

Scope

This policy is applicable to all employees of [company name].

General principles

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.

Where this is necessary, we will ensure that:

• the total number of redundancies made is kept to a minimum; 
• employees and, where appropriate, their representatives are fully consulted on any proposals and their implementation;
• selection for redundancy is based on clear criteria that will, as far as possible, be objectively and fairly applied;
• every effort is made to redeploy or find alternative work for employees selected for redundancy; and
• support and advice is provided to employees selected for redundancy to help them find suitable work when their employment has come to an end.

Consultation

Where there are no employee representatives

Consultations will be carried out with individual employees as appropriate. Where it is proposed that 20 or more redundancies are required [at the same location] over a 90-day period, arrangements will be made for the election of employee representatives who will be consulted over the proposals and the general process to be followed. Individual employees will still be consulted in respect of their own particular circumstances.

Where there are existing employee representatives

Consultations will be carried out with individual employees as appropriate. Where it is proposed that 20 or more redundancies are required [at the same location] over a 90-day period, consultations will take place with the [name of employee forum] over the proposals and the general process to be followed. Individual employees will still be consulted in respect of their own particular circumstances.

Voluntary redundancy

In order to minimise the need for compulsory redundancies, [Company] may consider requests from employees for voluntary redundancies. Whether or not additional payments will be offered in relation to voluntary redundancies will be a matter for consultation and will depend on the circumstances.

[Company] reserves the right at its absolute discretion to decline requests for voluntary redundancy.

Redundancy selection

The criteria used in selecting employees for redundancy will depend on the existing circumstances and the particular needs of the organisation at the time. However, every effort will be made to construct a fair and robust set of criteria following appropriate consultations.

Alternative work

[Company] will make every effort to redeploy you to suitable alternative work if you are selected for redundancy. You will be informed of all the available vacancies at the time of your selection and will be given an opportunity to discuss with [your manager] which vacancies are likely to be suitable for you. 

While priority will be given wherever possible to employees under threat of redundancy, [Company] reserves the right to select the best available candidate in relation to any given vacancy.

Time off work

If you are under notice of redundancy you will be entitled to a reasonable amount of paid time off to look for alternative work, attend interviews, etc. 

Redundancy pay

Redundancy payments will be made in line with statutory entitlements in force at the time.