Policies, contracts, letters, guidance and HR support tools for UK employers.
View full library
A redundancy policy is a framework that outlines procedures for fairly managing redundancies, including consultation, selection criteria, and employee support.
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:
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
To view in full, make a purchase
For more value, this is also found in our Full library and Terminating employment policy templates
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.
Here are some key UK employment legislation that supports implementing a redundancy policy template:
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.
The Trade Union and Labour Relations (Consolidation) Act 1992 requires employers to consult with employees or their representatives when proposing to make redundancies.
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.
The Working Time Regulations 1998 require employers to provide notice of termination and any statutory redundancy payment to employees who are made redundant.
The National Minimum Wage Act 1998 requires employers to pay employees the statutory minimum wage during any notice period and statutory redundancy payment.
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.
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.
Yes. This template has been designed for organisations of all sizes, including small businesses, charities and growing employers. It follows UK employment law best practice and can be adapted to suit your organisation.
Our templates are developed with UK employment legislation, Acas guidance and HR best practice in mind and are reviewed and updated as relevant requirements change. However, every employment situation is different, so the template should be adapted to the circumstances and checked against the employee's contract and your organisation's procedures before use.
Yes, we highlight the areas of the document 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.
Yes. Once purchased, you'll be able to download it instantly. Templates are provided in editable format (such as .doc or .xls) so you can customise them easily, and in PDF format for easy sharing.
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 deeper advice.
AI can produce a document quickly, but effective HR documentation needs to be more than well-written words. It needs to reflect relevant UK employment law, HR best practice, practical considerations and the circumstances in which it will be used. These resources have been professionally developed around that wider HR context, drawing on extensive practical experience, rather than simply generating a generic document from a prompt.
Darryl Horn, Chartered HR Director
Darryl is a Chartered HR professional with over 25 years' experience in senior HR and employee relations roles.
He has extensive practical experience of managing terminating employment processes and founded hrdocbox to provide businesses with practical, professionally developed HR resources grounded in UK employment law and best practice.
"Darryl provides support and advice with excellent judgement, and has a strong understanding of people, policies and UK employment legislation."
"He is someone I trust; consistent, dependable, and committed to doing things properly."
Terminating employment policies
8 templates
£34.90
Whether you employ 5 people or 50, hrdocbox gives you the structure, documents and expertise needed to manage employees professionally and legally.
Professionally written and fully compliant with UK employment law
Access a free contract template instantly - or save 10% on any document today.
Use this code at checkout for 10% off anything!
Includes instant download, updates, and full access to your HR templates.
Handbook library
131 templates
Full library
776 templates