Guide to redundancy obligations and timelineReading time 2 minutes (inc. support info). Reviewed 21/05/2023.
The guide outlines the obligations and timeline for employers during redundancies, ensuring compliance and supporting a smooth transition.
What is a Guide to redundancy obligations and timeline?
The purpose of this guide is to provide employers with a structured overview of the obligations and timeline involved in managing redundancies.
It helps employers understand the necessary stages and tasks, as well as the associated timeframes, to ensure compliance with employment laws and regulations. By following this guide, employers can effectively navigate the redundancy process, promote transparency, and support employees during this challenging period.
What legal and best practice aspects should employers be aware of?
Employment Rights Act 1996: Provides statutory rights for employees, including notice periods, redundancy pay, and unfair dismissal protections.
Trade Union and Labour Relations (Consolidation) Act 1992: Regulates collective consultation requirements when making 20 or more employees redundant within 90 days.
Equality Act 2010: Prohibits discrimination during the redundancy process based on protected characteristics, such as age, gender, race, disability, etc.
Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE): Covers situations where a business is transferred, requiring employee consultation and protection.
The Redundancy Payments (Continuity of Employment in Local Government, etc.) (Modification) Order 1999: Modifies redundancy payment provisions for certain local government employees.
The Information and Consultation of Employees Regulations 2004: Requires employers to inform and consult with employee representatives in redundancy situations.
Employment Tribunal Rules of Procedure: Provides a legal framework for resolving employment disputes related to redundancies through the tribunal system.
Health and Safety at Work Act 1974: Ensures employers provide a safe working environment during the redundancy process and beyond.
Statutory Maternity Pay (General) Regulations 1986: Covers maternity pay entitlements during redundancy situations for pregnant employees.
National Minimum Wage Act 1998: Sets minimum wage rates that must be maintained during the redundancy process.
Guide to redundancy obligations and timeline
The following timescales are indicative only.
Actual timescales will vary depending upon the complexity of the redundancy, and the number of employees.
|Identification of Redundancy Need
|Assess business reasons for redundancy
|As soon as the need arises
|Determine the number and roles at risk
|Explore alternative options to redundancy
|30 days or more
|Provide relevant information and reasons
|Discuss alternatives and gather input
|Establish fair and objective criteria
|Before consultation begins
|Communicate criteria to employees
|Notice and Redundancy Payments
|Provide written notice
|As per statutory requirements
|Calculate and pay redundancy payments
|Inform employees of entitlements
|Consider internal alternative roles
|Throughout consultation process
|Offer redeployment or retraining options
|Provide support and training
|Termination and Appeals
|Conduct fair dismissals
|As per statutory requirements
|Allow time for appeals process
|Reasonable timeframe, typically 1-2
|Offer ongoing support and assistance
|Throughout the transition period
|Provide career counseling and job search aid
|Assist with obtaining new employment
- 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.