Individual Redundancy Consultation: UK Employer Compliance Requirements

If you’re a small business employer, redundancy can feel like one of the toughest parts of running a team. You’re balancing cashflow pressures, the future of the business, and the very real impact on your people.

But here’s the key thing: even when redundancy is genuinely necessary, you still need to run a fair process. A big part of that is individual consultation for redundancy - meaning one-to-one consultation with each affected employee (even if you’re also doing a wider group process).

Done properly, individual redundancy consultation helps you:

• reduce legal risk (including unfair dismissal claims where the employee has the right to claim),
• make better decisions (you might uncover alternatives you hadn’t considered), and
• protect your reputation with the remaining team.

Below we break down what individual consultation for redundancy involves, when you need it, what to cover, and how to document it so you can stay compliant.

What Is Individual Consultation In A Redundancy Process?

Individual consultation is a series of conversations (usually meetings) between you and each employee who is “at risk” of redundancy. The purpose isn’t to tick a box - it’s to genuinely consult before you make a final decision.

In practice, individual consultation for redundancy usually involves:

• telling the employee their role is at risk (and why),
• explaining the proposed selection pool and selection criteria (if you’re selecting between employees),
• listening to the employee’s feedback, questions and any challenges,
• discussing alternatives (like redeployment or reduced hours), and
• keeping a written record of what was discussed and any decisions made.

It’s worth knowing that redundancy consultation is heavily influenced by fairness principles under the Employment Rights Act 1996, plus practical guidance from ACAS. Tribunals often look at whether you acted reasonably overall - and meaningful consultation is one of the biggest factors.

If your redundancy situation also triggers “collective consultation” duties (for larger numbers), individual consultation still matters. Collective consultation doesn’t replace the need to consult with people one-to-one.

When Do You Need Individual Consultation For Redundancy?

In most cases, yes.

Even if you’re only making one role redundant, you’ll generally be expected to consult with that employee before confirming redundancy. If you’re making multiple redundancies, you’ll usually need a structured individual consultation process for each affected employee.

Common Scenarios Where Individual Consultation Applies

• Role no longer needed (for example, loss of a key contract or reduced demand).
• Workplace closure (closing a site, branch, or the whole business).
• Business re-structure (new roles created, old roles removed, changes to duties).
• Reduced requirement for employees to carry out work of a particular kind (for example, fewer admin staff needed after automation).

Individual vs Collective Consultation: Don’t Confuse Them

Collective consultation typically applies if you propose to dismiss 20 or more employees at one establishment within 90 days (under the Trade Union and Labour Relations (Consolidation) Act 1992). This has strict minimum timeframes and formal requirements.

But even where collective consultation is required, you should still plan individual consultation meetings with each affected employee. If you’re unsure what consultation timeframe applies, it’s worth checking the basics around redundancy consultation periods early, so your timeline is realistic and compliant.

A Step-By-Step Individual Consultation Redundancy Process For Small Businesses

You don’t need a huge HR department to run a fair process - but you do need a clear plan. Here’s a practical structure many small businesses use.

1) Plan The Business Case And The “At Risk” Group

Before you talk to employees, get clear internally on:

• why redundancy is necessary (the business rationale),
• which roles are potentially affected (not just which people),
• whether you need a selection pool (i.e. a group of employees doing similar work), and
• what the likely timeline is.

It’s also a smart moment to sanity-check whether redundancy is the right route, or whether the issue is actually performance or capability. If you’re dealing with underperformance rather than a reduced need for the role, a redundancy process can backfire - and a fair process like Performance Improvement Plans may be more appropriate.

2) Choose Fair Selection Criteria (If You’re Selecting Between Employees)

If you’re selecting from a pool (for example, 3 admin staff but you only need 2), you’ll need fair and objective criteria. Common examples include:

• skills and qualifications,
• performance (based on evidence, not vague opinions),
• disciplinary record (careful - context matters),
• attendance (again, be cautious around disability-related absences), and
• experience relevant to the future needs of the business.

A scoring approach can help you stay consistent and show your workings if challenged. Many employers use a documented redundancy scoring matrix to reduce the risk of unconscious bias and to keep decisions evidence-based.

3) Hold The First Individual Consultation Meeting

This is often called the “at risk” meeting. Your goal is to start consultation - not to announce a done deal.

In the first meeting, you’ll usually cover:

• that the role is at risk of redundancy,
• the reasons (business case),
• the proposed selection pool and criteria (if relevant),
• what happens next and expected timelines, and
• invite questions, ideas and feedback.

Tip: Keep your tone calm and factual. Redundancy meetings are stressful for employees, and how you handle this initial meeting can set the tone for the whole process.

4) Consider Alternatives And Invite Proposals

Consultation should include exploring ways to avoid redundancy. Depending on your business, that might include:

• reducing overtime,
• retraining or changing duties,
• redeployment into a suitable alternative role,
• temporary layoff or short-time working (only if your contracts allow it),
• voluntary redundancy, or
• reducing hours (with agreement).

If the redundancy is connected to a business transfer or acquisition, you’ll also need to factor in TUPE considerations. In those situations, a proper TUPE transfer checklist can help you avoid mixing up “redundancy” and “transfer” issues (which can be costly if handled incorrectly).

5) Hold A Follow-Up Meeting (And Usually A Second Consultation Meeting)

Most genuine redundancy processes involve more than one conversation. After the first meeting, the employee may come back with questions, challenge scoring, or propose alternatives.

It’s common to hold a further meeting to:

• respond to any points raised,
• share scoring (if applicable) and discuss it fairly,
• confirm what alternatives have been considered, and
• explain next steps.

Many employers refer to this as the second consultation meeting, and it’s a useful way to show that consultation wasn’t rushed.

6) Confirm The Outcome In Writing (And Give The Right Notice)

If, after consultation, redundancy is confirmed, you should confirm the outcome in writing, including:

• the dismissal date,
• notice period (or payment in lieu if applicable),
• redundancy pay (if eligible),
• holiday pay arrangements,
• time off to look for work (where the employee qualifies),
• the right to appeal.

Notice can be a trap for small businesses, especially where contracts provide enhanced notice above the statutory minimum. It’s worth checking redundancy notice periods so you’re not caught out by dates, payroll cut-offs, or misunderstandings about when notice starts.

What Should You Cover In Redundancy Individual Consultation Meetings?

To keep your individual consultation for redundancy process meaningful (and defensible), make sure your meetings cover the right topics.

The Business Rationale (In Plain English)

Employees don’t need a full finance pack, but they should understand the genuine reason you’re proposing redundancies. For example:

• “We’ve lost X contract which funded this role,” or
• “We’re restructuring and merging two teams because demand has shifted.”

Be consistent. If different employees receive different explanations, it can look like the business case is being invented as you go.

The Selection Pool And Why It’s Fair

If only one role is being removed (and there’s genuinely no selection pool), explain why. If there is a pool, explain who is in it and why.

This is an area where employers often get challenged, because selection pools can feel personal. Good consultation gives the employee a chance to argue (for example) they should be in a different pool, or that the pool is too narrow.

The Selection Criteria And Evidence

If you’re scoring, your employee should be able to understand:

• the criteria,
• their score, and
• the evidence you relied on.

Avoid “secret scoring”. If an employee can’t see how you reached the decision, they’re more likely to feel the outcome was predetermined.

Alternatives To Redundancy

This is often where small businesses can accidentally undermine themselves. If you dismiss for redundancy but you never genuinely considered alternatives, it can look unfair.

Make sure you can show you considered (and discussed) alternatives like redeployment, training, role redesign, or reduced hours.

Practical Impacts And Support

While you’re not required to provide counselling or outplacement services, it’s good practice to handle the process humanely. For example:

• give the employee time to process information,
• allow them to ask questions over email after meetings, and
• explain how final pay and benefits will work.

This also helps protect the ongoing culture in your business - the remaining team will remember how you handled a difficult time.

Common Mistakes That Make Individual Consultation For Redundancy Risky

Small businesses rarely get redundancy wrong because they’re trying to be unfair. Most problems happen because things move fast, and the process becomes informal.

Here are the most common pitfalls to avoid.

1) Treating Consultation As A One-Off Announcement

If the first time the employee hears about redundancy is a meeting where you hand them a letter confirming dismissal, that’s not consultation - that’s notification.

Consultation should happen before the decision is final.

2) Using Vague Or Subjective Selection Criteria

Criteria like “attitude”, “team fit”, or “commitment” can be risky unless you can point to objective evidence. If criteria are too subjective, they can mask discrimination (even unintentionally) and are harder to defend.

3) Ignoring “Suitable Alternative Employment”

If you have another role that could be suitable, you should at least consider it and discuss it. Even if the alternative role is not an identical match, consultation is the opportunity to explore whether it could work with training or a trial period.

4) Mixing Up Redundancy With Capability Or Misconduct

Redundancy is about the role disappearing or the business needing fewer people to do that work. If the real issue is performance, attendance, or conduct, redundancy can look like a shortcut.

That can increase the risk of an unfair dismissal claim, especially if the employee has the right to bring a claim (for example, in many cases after 2+ years’ service).

5) Poor Record-Keeping

In a dispute, it’s the paper trail that often matters. Keep:

• meeting invitations,
• meeting notes (ideally shared afterwards),
• copies of scoring,
• communications about alternative roles, and
• the final outcome letter and appeal outcome (if any).

If you’re ever challenged, good records can show you acted reasonably and gave the employee a fair chance to engage.

Key Takeaways

• Individual consultation for redundancy usually involves a series of one-to-one meetings where you explain the proposal, listen to feedback, and consider alternatives before making a final decision.
• Even where collective consultation applies, one-to-one consultation is still important and is often expected as part of a fair process.
• A fair process typically includes: identifying the at-risk group, setting objective selection criteria, meeting with each employee, considering alternatives, holding follow-up meetings, and confirming the outcome in writing.
• Using tools like a documented scoring approach can help you stay consistent and reduce the risk of bias in selection decisions.
• Common risks include treating consultation as a box-ticking exercise, using subjective criteria, failing to consider alternative roles, and not keeping proper records.
• Because redundancy can be legally and emotionally complex, it’s often worth getting tailored advice before you start the process.

Disclaimer: This article is general information only and isn’t legal advice. Redundancy law can be fact-specific, so consider getting advice on your particular situation.

If you’d like help running a redundancy process properly (including individual consultation planning, letters, and risk management), you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.