Your browser does not support JavaScript

Redundancy plan template

3 min read
£ 15
Or, upgrade to our Redundancy toolkit

Ensure fair, compliant, and transparent redundancy processes with our Redundancy Plan template, designed for UK employers to meet legal requirements.

We also have budget-friendly bundles featuring this template:

What is a Redundancy plan?

The purpose of a redundancy plan is to provide a structured framework for managing the redundancy process within an organisation. It helps ensure that redundancies are handled fairly, legally, and transparently while minimising the impact on affected employees.

The plan helps by:

  1. Establishing clear procedures and guidelines for selecting employees for redundancy based on objective criteria.
  2. Outlining the consultation process to engage with affected employees, address their concerns, and explore alternative options.
  3. Providing guidance on redeployment opportunities and support for affected employees in finding suitable alternative employment.
  4. Ensuring compliance with legal requirements, such as notice periods and redundancy payments.
  5. Offering an appeals process to allow employees to challenge redundancy decisions if they feel they have been treated unfairly.

The redundancy plan should be issued to all relevant stakeholders involved in the redundancy process, including management, HR personnel, and employee representatives or trade unions if applicable.

Redundancy plan template
redundancy plan template

What legal and best practice aspects should employers be aware of?

  • Employment Rights Act 1996: Provides statutory rights and protections for employees, including redundancy payments, notice periods, and the right to be consulted during the redundancy process.

  • Trade Union and Labour Relations (Consolidation) Act 1992: Sets out requirements for collective consultation with employee representatives or trade unions when planning redundancies affecting multiple employees.

  • Equality Act 2010: Prohibits discrimination based on protected characteristics, ensuring that redundancy decisions are made on fair and non-discriminatory grounds.

  • The Information and Consultation of Employees Regulations 2004: Requires employers to inform and consult with employees on matters that may lead to collective redundancies, ensuring their input and involvement in the process.

  • The Collective Redundancies and Transfer of Undertakings (Protection of Employment) (Amendment) Regulations 2014: Introduces additional consultation requirements for collective redundancies, including providing information to employee representatives and government authorities.

Redundancy plan


Introduction

This Redundancy Plan outlines the procedures and guidelines to be followed by [Company Name] in the event of redundancies. It is designed to ensure compliance with UK employment law requirements and promote fair and transparent redundancy processes.

Scope and Objectives

Scope

This plan applies to all employees of [Company Name] who may be affected by potential redundancies.

Objectives

  • To ensure fair and non-discriminatory redundancy selection processes.
  • To provide support and assistance to affected employees during the redundancy process.
  • To comply with legal obligations, including consultation requirements and redundancy payments.

Redundancy Selection Criteria

Selection Criteria

  • The selection of employees for redundancy will be based on objective and non-discriminatory criteria.
  • Consideration will be given to skills, qualifications, performance, disciplinary records, and any other relevant factors.
  • A scoring matrix may be used to assess employees against the criteria.

Consultation Process

Individual Consultation

  • Affected employees will be provided with individual consultations to discuss the redundancy situation.
  • The purpose of the consultation is to explain the reasons for the redundancy, explore alternative options, and address employee concerns.

Collective Consultation

  • If applicable, collective consultation will be carried out with employee representatives or trade unions.
  • This will involve providing information about the redundancy situation and engaging in meaningful dialogue.

Timelines for Consultation

  • Consultation periods will be determined based on the number of employees affected and the scale of the redundancy process.
  • Adequate time will be provided to allow for meaningful consultation and consideration of alternatives.

Redeployment and Alternative Employment

Redeployment Opportunities

  • [Company Name] will actively seek and consider suitable alternative employment opportunities within the company for affected employees.
  • Employees will be given access to available vacancies and provided support for applications, including training and re-skilling if necessary.

Redundancy Entitlements

Notice Periods

  • Redundant employees will be given the appropriate notice period as required by UK employment law.
  • Longer notice periods may be provided based on length of service or contractual obligations.

Redundancy Payments

  • Redundant employees will receive redundancy payments in accordance with UK redundancy legislation.
  • Payments will be calculated based on length of service, age, and weekly pay.

Employee Benefits and Support

  • [Company Name] will provide information and support to redundant employees regarding their entitlements to benefits, compensation, and job-seeking resources.
  • This may include guidance on accessing government support, career counseling, and assistance in updating CVs and job applications.

Appeals Process

Right to Appeal

  • Employees who are made redundant will have the right to appeal the decision.
  • The appeals process will provide a fair and impartial review of the redundancy decision.
  • Appeals must be submitted in writing within a specified timeframe.

Data Protection and Confidentiality

Data Protection

  • Personal data collected during the redundancy process will be handled in accordance with UK data protection laws.
  • Confidentiality of employee information will be maintained.

Review and Amendment

Review

  • This Redundancy Plan will be reviewed regularly to ensure compliance with changes in UK employment law and best practices.
  • Employee feedback and consultation outcomes will be considered for further improvements.

Signed: [Your Name]

Position: [Your Position]

[Company Name]

Direction

The Redundancy plan template is issued by an employer
Employer
Issue path
The Redundancy plan template is issued to an employee representatives
Employee reps

Timing

At the earliest stage of the redundancy process, ensuring that all parties are aware of their roles and responsibilities and that the process is conducted in a fair and compliant manner.

Related articles

Who are some Companies who utilise our Redundancy plan template?
  
  
Why buy our Redundancy plan template?
  • You save time and effort with a professionally written, editable HR document that is tailored to meet best practice.
  • You ensure compliance with applicable ACAS Codes of Conduct and other legal requirements.
  • You are notified by email whenever this template or its supporting resources are updated.
  • You enjoy 12 months of unlimited access with no hidden fees or extra costs.
  • You unlock a 25% discount on all future purchases or renewals of our libraries, toolkits, and templates.

What do our customers say about us?

I have been using the service now for around 6 months and it has been really useful in developing and updating polices and processes.

- Jamie Allan, Armstrong Craven ★★★★★

Armstrong Craven logo

Read full review on Google

Excellent library of resources and templates which have made my job in my small business so much easier to manage HR for my employees...

- Emma Hunt ★★★★★

Read full review on Google

Great value and the site contains an extensive library of essential HR documents. I access the site probably once a week...

- Laura Alliss-Etty ★★★★★

Read full review on Google

A great source of information and advice. I can highly recommend hrdocbox.

- Georgina Loom, The Hygiene Bank

The Hygiene Bank logo

HRDocBox is a great resource. It is incredibly good value, providing a large selection of HR guidance materials as well as...

- Emma Beauchamp ★★★★★

Read full review on Google

Supporting Menopausal Employees and Avoiding Legal Risk
Thu, 22 Feb 24

Supporting Menopausal Employees and Avoiding Legal Risk

Guidance for Employers

The recent announcement from the Equality and Human Rights Commission (EHRC) clarifying the legal obligations surrounding menopause in the workplace has sparked important conversations...