Redundancy Consultation for Under 20 Employees in the UK: Rules & Timeline

If you’re a small business owner and you’re facing the hard reality of making redundancies, you’re not alone - and you’re right to pause and check the rules before you move forward.

Where many employers get stuck is this: you know about “collective redundancy consultation”, but you’re not planning to make 20+ redundancies. So what does redundancy consultation look like in the UK when it involves fewer than 20 employees?

The short version is that you may not have to follow the statutory collective consultation timeframes, but you still need to run a fair, meaningful redundancy process with proper consultation. If you don’t, you can end up with unfair dismissal claims, discrimination risks, and a costly breakdown in trust with your team.

Below, we’ll walk you through the practical UK rules, suggested timelines, and a step-by-step consultation process for redundancies affecting fewer than 20 employees - written from the perspective of a growing (and busy) business that needs to get it right.

What Does “Redundancy Consultation” Mean In Practice When It’s Fewer Than 20 Employees?

In UK employment law, there are two overlapping ideas:

• Collective consultation (a specific legal regime that applies when you propose making 20 or more redundancies at one establishment within 90 days), and
• Individual consultation (the fairness requirement that applies when you dismiss someone for redundancy, even if it’s only one role).

When people search for “redundancy consultation period for less than 20”, they usually want to know whether there is a fixed number of days you must consult for. In most cases, the answer is:

• There is no set minimum statutory consultation period for fewer than 20 redundancies (because the statutory timeframes relate to collective consultation).
• But you still must consult properly to make the redundancy dismissal fair.

In other words, “less than 20” doesn’t mean “no consultation” - it means you’ll typically be focused on a robust individual redundancy consultation process, rather than the collective consultation framework.

If you’re unsure which bucket you’re in (or whether separate sites count as “one establishment”), it’s worth getting advice early - the cost of getting the threshold wrong can be significant. This is exactly the kind of scenario where Redundancy Advice can save you headaches later.

Do You Still Need Consultation If You’re Making Under 20 Redundancies?

Yes - if you want the dismissals to stand up as fair.

Even for a single redundancy, a fair process usually includes:

• a genuine redundancy situation (for example, reduced need for work, business closure, workplace closure, or restructure)
• fair selection (where there is a pool)
• meaningful consultation with the affected employee(s)
• considering alternatives to redundancy (including suitable alternative roles)
• proper notice and redundancy payments (where applicable)

Consultation is not meant to be a “tick box”. It’s about giving employees a real opportunity to understand what’s proposed, ask questions, challenge scoring (if used), and suggest alternatives.

From a small business perspective, the practical win here is that a proper consultation often helps you:

• reduce the risk of claims
• improve team morale (even in a difficult time)
• identify cost-saving alternatives you may not have considered
• avoid mistakes like selecting someone based on subjective or discriminatory criteria

If you’re doing a restructure because performance is an issue, it’s also worth sanity-checking that redundancy is actually the right tool. In many cases, performance concerns should be handled through a fair performance process (for example, a Performance Improvement Plan) rather than presenting it as redundancy.

What Are The UK Rules And Timelines For Under 20 Redundancies?

When you’re below the collective consultation threshold, the law doesn’t give you a neat “consult for X days” rule. Instead, the test is usually whether you acted reasonably in all the circumstances and followed a fair procedure.

That said, as a practical guide, most small businesses use a timeline that looks like:

• At least 1 consultation meeting (but commonly 2)
• A reasonable period to consider information between meetings (often a few days to a week)
• Time for the employee to propose alternatives (redeployment, reduced hours, role changes, job share, unpaid leave, etc.)

What counts as “reasonable” depends on factors like:

• how many redundancies you’re making (even if under 20)
• how complex the restructure is
• whether you’re scoring a pool of employees
• whether there are suitable alternative roles available
• the employee’s circumstances (for example, if they’re off sick or on family leave)

A Suggested Timeline (That Often Works For Small Businesses)

Below is a common approach. It’s not a legal “must”, but it helps you show you took consultation seriously.

Stage	Typical Timing	Purpose
Planning & setup	Before any meetings	Clarify the redundancy rationale, selection pool, scoring method, alternative roles, and documentation.
“At risk” notification	Day 1	Tell the employee their role is at risk, explain why, and invite them to a consultation meeting.
Consultation meeting 1	Day 3–7	Explain the proposal, discuss selection criteria/scores, invite alternatives, and answer questions.
Consideration period	Day 7–14	Employee reviews documents; employer explores alternatives and reviews any feedback.
Consultation meeting 2	Day 10–21	Respond to feedback, confirm whether alternatives exist, and (if needed) move to a provisional decision.
Decision & outcome letter	Day 14–28	Confirm redundancy outcome (or alternative), notice, payments, and right of appeal.
Appeal (if raised)	Typically within 5–10 working days	Give a genuine review of the decision, ideally by a different decision-maker where possible.

Some processes move faster, some slower - but if you’re aiming for best practice, avoid making the decision “too quickly” after the first meeting unless the role is genuinely disappearing and there are no alternatives. A rushed process is one of the easiest ways to turn a redundancy into an unfair dismissal risk.

If you are actually proposing 20+ redundancies, the rules change and you’ll need to follow specific collective consultation timeframes. In that scenario, this guide on redundancy consultation periods is a helpful starting point.

A Step-By-Step Redundancy Consultation Process For Fewer Than 20 Employees

If you want a clear roadmap, here’s a process many small businesses follow when managing redundancies under the collective threshold.

1) Confirm You Have A Genuine Redundancy Situation

Before you consult, get clear on the “why”. Common genuine redundancy scenarios include:

• your business is closing (or a site is closing)
• your work has reduced (for example, losing a key client)
• you’re restructuring and fewer people are needed to do the work
• you’re outsourcing or automating a function

Write this down internally. You don’t need a novel - you need a coherent, evidence-backed explanation you can share during consultation.

2) Identify The Pool For Selection (If There Is One)

Sometimes it’s obvious: one stand-alone role is going, and there’s no one else doing that work.

But if multiple people do similar work, you’ll usually need a selection pool (for example, “all customer service assistants at Site A”). Choosing an artificially narrow pool can look unfair, so it’s worth thinking it through.

3) Set Fair Selection Criteria (And Avoid Subjectivity)

If you’re selecting from a pool, you’ll need fair criteria and a scoring approach. Common criteria include:

• skills and qualifications relevant to the ongoing role(s)
• performance (based on objective records, not gut feel)
• disciplinary record (again, documented)
• attendance (but be careful - disability and pregnancy-related absences need special handling)

Try to avoid criteria that are overly subjective (for example, “attitude” without evidence), because they’re harder to justify and can open the door to discrimination arguments.

If you’re unsure how to structure scoring, using a redundancy scoring matrix approach can help you stay consistent and document decisions clearly.

4) Send An “At Risk” Letter And Invite The Employee To Consult

Your “at risk” communication should usually:

• explain that redundancy is being proposed (not yet decided)
• summarise the business reason
• outline the selection pool/criteria (if applicable)
• invite the employee to a consultation meeting and confirm what support they can bring (for example, you may allow them to be accompanied, even though the statutory right to be accompanied usually applies to formal disciplinary and grievance meetings rather than redundancy consultation meetings)
• share any documents they need in advance (for example, proposed structure chart or scoring)

This is also a good time to make sure your paperwork is consistent with your existing Employment Contract terms on notice, redundancy pay enhancements (if any), and mobility clauses (which may affect redeployment options).

5) Hold A Genuine Consultation Meeting (Often Two)

Your first consultation meeting is usually about:

• talking through the proposal clearly
• explaining how the employee is affected
• discussing scoring and the selection pool (if relevant)
• asking the employee for their feedback and suggestions
• exploring alternatives to redundancy

Then give the employee time to reflect, come back with questions, and (if relevant) challenge scoring with evidence.

The second meeting is where you:

• respond to the employee’s feedback
• confirm whether any alternatives are available
• confirm your decision (if redundancy is the outcome)
• explain notice, pay, and appeal rights

Keep notes of meetings. If a decision is later challenged, your notes can help demonstrate that consultation was real and not a “done deal”.

6) Consider Suitable Alternative Employment Properly

Even in a small team, you should consider whether there’s other suitable work available, such as:

• a vacant role
• a modified role (changed duties)
• reduced hours or part-time arrangements
• temporary layoff or short-time working (if allowed and appropriate)

If you offer an alternative role, consider whether a trial period is appropriate. Where the role is suitable alternative employment, employees who accept it are usually entitled to a statutory 4-week trial period (which can be extended in limited circumstances if retraining is needed). Document what is being offered and on what terms.

7) Confirm The Decision In Writing, With Notice And An Appeal

Your outcome letter should typically cover:

• confirmation of redundancy dismissal (and the reason)
• termination date and notice period (or payment in lieu if applicable)
• redundancy pay and any other final payments (holiday pay, bonuses if applicable)
• return of property and handover expectations
• the employee’s right of appeal and how to raise it

If you don’t already have one, a clear Staff Handbook can help standardise how you run processes like consultation meetings, appeals and workplace communications - especially as your business grows.

Common Mistakes Small Businesses Make (And How To Avoid Them)

Most redundancy disputes don’t happen because a business is “bad”. They happen because the business is moving fast, under pressure, and the process becomes messy.

Here are some of the most common pitfalls we see when employers handle redundancies under 20 employees:

Deciding The Outcome Before Consulting

If your consultation meeting feels like a script and the decision is already final, you’re increasing your unfair dismissal risk. Keep the language and approach genuinely open until the end of consultation.

Using Redundancy To Solve Performance Problems

Redundancy is about the role disappearing or the business needing fewer employees - not about someone underperforming. If the real reason is performance, you’ll often be better protected using a fair process (for example, a structured capability procedure).

Weak Or Inconsistent Selection Criteria

Vague scoring can be hard to defend. If you’re selecting from a pool, keep criteria objective, evidence-based, and applied consistently.

Missing Discrimination Risks

Selection decisions can accidentally discriminate - for example, if you score attendance without adjusting for disability-related absence, or if you overlook the impact on employees on maternity leave.

Not Exploring Alternatives Properly

Even if you believe there’s no alternative role, document that you checked and explain it during consultation. This is often a key part of demonstrating fairness.

What Documents And Prep Should You Have In Place Before You Start?

Small businesses run best when you can move quickly - but redundancy is one area where a little upfront preparation can prevent big downstream risk.

Before you begin consultation, it helps to have:

• a clear business rationale (for example, financials, lost contract, restructure plan)
• a proposed new structure chart (even a simple one)
• selection pool notes explaining who is in scope and why
• selection criteria and scoring evidence (if pooling)
• draft letters (at risk invite, outcome letter)
• a list of possible alternative roles and how you assessed suitability
• up-to-date contracts and policies to ensure notice, benefits, and procedures are consistent

It can feel like a lot, but once you set it up, you’ll run the process with far more confidence - and your team will usually respond better when communications are clear and consistent.

Key Takeaways

• If you’re making fewer than 20 redundancies, there’s usually no fixed statutory minimum consultation period, but you still need a fair and meaningful consultation process.
• A proper redundancy process for fewer than 20 employees typically involves: confirming a genuine redundancy situation, fair selection (where relevant), at least one (often two) consultation meetings, considering alternatives, and confirming the outcome in writing with an appeal option.
• Even without collective consultation rules, rushing the process or treating consultation as a formality can increase your risk of unfair dismissal claims.
• Use objective selection criteria and keep notes to show your decisions were evidence-based and non-discriminatory.
• Always explore suitable alternative employment options, even in a small team, and document what you considered.
• Make sure your contracts and policies support the process (notice, pay, procedure), and avoid using redundancy as a workaround for performance concerns.
• Remember that statutory redundancy pay is only due if the employee has at least 2 years’ continuous service (though your contract or policy may provide enhanced redundancy pay).

If you’d like help running a redundancy process in a way that protects your business and treats your staff fairly, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.