Alex is Sprintlaw’s co-founder and principal lawyer. Alex previously worked at a top-tier firm as a lawyer specialising in technology and media contracts, and founded a digital agency which he sold in 2015.
Common Mistakes That Make Redundancies Risky (And How To Avoid Them)
- Mistake 1: Treating The Redundancy Meeting As A “Decision Meeting”
- Mistake 2: Using Redundancy To Avoid Managing Performance
- Mistake 3: A “Handpicked” Pool Or Subjective Scoring
- Mistake 4: Missing Discrimination Risks
- Mistake 5: Not Looking For Suitable Alternative Employment
- Mistake 6: Rushing The Timeline
- Key Takeaways
For most small businesses, making roles redundant is one of the hardest calls you’ll make. It’s rarely about “wanting someone gone” - it’s usually about survival, restructuring, or a genuine change in what your business needs.
But even when redundancy is a legitimate business decision, the process you follow matters. A poorly run redundancy meeting (or skipping consultation altogether) can quickly turn an already difficult situation into a legal dispute, reputational damage, and a very expensive distraction.
This guide breaks down what to cover in a redundancy meeting, what you should do before you sit down with your employee, and how to reduce risk while treating people fairly and respectfully.
What Is A Redundancy Meeting (And When Do You Need One)?
A redundancy meeting is a formal meeting (or series of meetings) where you consult with an employee who is “at risk” of redundancy. In practice, redundancy is usually a process rather than a single meeting - but the meetings are where you demonstrate consultation, explain your proposals, and listen to feedback.
In UK law, redundancy is typically a potentially fair reason for dismissal under the Employment Rights Act 1996. However, a redundancy dismissal can still be unfair if you don’t follow a fair procedure.
When Is It Actually A “Redundancy”?
Redundancy generally happens when:
- your business closes (or plans to close) altogether;
- a workplace closes (for example, you close a branch or site);
- your need for employees to do work of a particular kind has reduced (for example, fewer orders, less funding, automation, or restructuring).
What redundancy shouldn’t be used for is performance management or conduct issues. If the real issue is performance, it’s safer to address it through a capability or performance process rather than forcing it into redundancy.
Do You Need A Redundancy Meeting If You’re Only Making One Role Redundant?
Not always - but in most cases, you should still consult with the affected employee before making a final decision. Even where only one role is being removed, a proper consultation process (including at least one meeting) helps you demonstrate the decision was fair and considered.
Redundancy Meeting vs “Redundancy Consultation”
You’ll often hear these terms used interchangeably. Strictly speaking:
- Consultation is the ongoing process of sharing information and seeking input before any final decision is made.
- A redundancy meeting is one of the formal consultation touchpoints where you discuss the proposed redundancy, selection, and alternatives.
If you’re unsure how many meetings you need, the short answer is: enough to demonstrate genuine consultation. For many small businesses, that’s commonly at least two meetings (an initial “at risk” meeting and a follow-up meeting), but the right approach depends on the circumstances.
Before The Redundancy Meeting: Your Employer Checklist
The redundancy meeting itself isn’t where you “figure it out”. It’s where you explain a proposal and consult. Doing the groundwork first is what keeps the meeting fair, calm, and defensible if challenged later.
1. Confirm You Have A Genuine Redundancy Situation
Before you speak to anyone, be clear on why the role is redundant. Document the business reason in plain English (for example: loss of a contract, cost reduction, restructure, relocation, automation).
This becomes the backbone of your communications and helps you avoid mixed messages like “we’re making the role redundant, but it’s also because your performance hasn’t been great”. Those mixed reasons are where claims often start.
2. Identify The “Pool” For Selection (If Relevant)
If you’re removing one role, you may need to consider who is in the selection pool. For example:
- If you have three admins doing broadly similar work and you only need two, your pool may be all three admins (not just the one you “prefer” to keep).
- If you have a unique role and you’re removing that role entirely, the pool might just be that one employee.
There’s no one-size-fits-all rule, but your pool choice should be reasonable and capable of being explained. If the pool looks artificially narrow, it can look like a targeted dismissal.
3. Build A Fair Selection Matrix (And Avoid Discrimination Risks)
If you need to select from a pool, use objective selection criteria (often called a scoring matrix). Typical criteria include:
- skills and qualifications relevant to future business needs;
- performance records (based on evidence, not vague impressions);
- disciplinary record;
- attendance record (handled carefully - see below).
Be cautious with absence/attendance. If absences relate to disability, pregnancy, or family-related leave, scoring can create discrimination risk under the Equality Act 2010. If you want to include attendance, take advice on how to adjust scoring fairly.
4. Prepare Your Paperwork
For a well-run redundancy meeting, you should typically have:
- a written “at risk” letter (or meeting invite) explaining the proposal and that no final decision has been made;
- information on the business rationale for redundancy;
- the proposed selection pool and criteria (if applicable);
- details of any suitable alternative roles you can identify at that time;
- a note-taker arranged (it’s usually better than trying to write notes while leading the meeting).
Also check your existing documentation, especially the employee’s Employment Contract, as it may include notice provisions, lay-off/short-time working clauses, or enhanced redundancy terms that affect what you can do.
5. Check Whether Collective Consultation Applies
If you propose making 20 or more employees redundant at one establishment within 90 days, collective consultation obligations may apply under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). This is a more complex regime and can involve minimum consultation periods and notifying the Secretary of State.
Even if you’re under the collective threshold, you still need a fair individual consultation process - and redundancy meetings are usually central to that.
If you’re unsure about timing, it helps to sanity-check your plan against typical consultation periods and what “meaningful consultation” looks like in practice.
Running A Fair Redundancy Meeting: What To Cover
When you’re in the redundancy meeting, your job is to consult - not to present a decision as a done deal. The tone matters. If the meeting feels like a scripted dismissal, you lose much of the value of consultation.
1. Start With The Purpose Of The Meeting
Set expectations early. For example, you can explain:
- the role is at risk of redundancy;
- no final decision has been made;
- you’re consulting and want the employee’s input;
- you’ll consider alternatives and any feedback before deciding next steps.
This framing helps keep the meeting aligned with a fair process.
2. Explain The Business Rationale Clearly
In plain language, cover:
- what has changed in your business;
- why that change impacts staffing needs;
- what roles are affected and why.
You don’t need to disclose every commercial detail, but you should provide enough information for the employee to understand the proposal and respond meaningfully.
3. Discuss The Selection Pool And Criteria (If You’re Selecting From A Group)
If you are selecting from a pool, explain:
- who is in the pool and why;
- what criteria you propose using and what evidence supports the scoring;
- the employee’s provisional score (if you’ve scored already) and invite them to challenge it.
This part is often where disputes arise, so be consistent and evidence-based. If you’ve relied on performance, refer to actual appraisals, KPIs, or documented feedback.
4. Explore Alternatives To Redundancy
A fair redundancy meeting should include a genuine conversation about avoiding redundancy where possible. Depending on your business, this might include:
- reducing overtime or contractor spend;
- reduced hours or job sharing;
- temporary pay reductions (only with agreement - unilateral changes are risky);
- redeployment into another role;
- voluntary redundancy (handled carefully to avoid discrimination);
- pausing recruitment for other roles.
If you have suitable alternative roles, raise them clearly and give the employee a chance to express interest.
5. Allow Questions, Suggestions, And Time To Respond
Consultation should be real. Give the employee time to ask questions and make suggestions - and don’t shut ideas down too quickly. You can note that you’ll consider proposals and come back with a response at the next meeting.
It’s also good practice (and can help keep the process fair and constructive) to allow the employee to be accompanied, for example by a colleague or trade union representative.
6. Close With Clear Next Steps
End the redundancy meeting by confirming:
- what you’re going to consider after the meeting;
- whether there will be a second consultation meeting;
- what timeframe you’re working to;
- that you’ll provide notes and/or confirm outcomes in writing.
A calm, structured close can make a big difference to how the process is perceived.
After The Redundancy Meeting: Next Steps, Notice, Appeals, Paperwork
Once the meeting is done, your follow-through matters just as much as what you said in the room.
1. Write Up Notes And Confirm What Was Discussed
Send a short written summary that covers:
- the key points discussed;
- any alternative proposals raised;
- any documents shared (selection criteria, scoring, role descriptions);
- the next meeting date or decision timeline.
This isn’t about “papering over” risk - it’s about creating a reliable record of meaningful consultation.
2. Hold A Follow-Up Consultation Meeting (Where Needed)
In many cases, a second redundancy meeting is sensible - particularly where:
- the employee has challenged scoring;
- new alternative roles have been identified;
- the business proposal has shifted;
- you want to give a final opportunity to comment before a decision.
If you’re planning a formal second meeting, you may find it helpful to follow a structured approach similar to a fact-finding meeting style: confirm the purpose, review evidence, invite responses, then adjourn to decide.
3. If Redundancy Is Confirmed, Issue A Proper Dismissal Letter
If, after consultation, redundancy is confirmed, you should provide a written dismissal letter setting out:
- the reason for dismissal (redundancy);
- the termination date;
- the notice period and whether notice will be worked or paid in lieu (PILON);
- redundancy pay details (if applicable) and any other final payments;
- holiday pay arrangements;
- the right to appeal and how to do so.
Notice is a common practical tripwire, especially where contracts have enhanced notice terms. Make sure you understand both statutory and contractual notice periods before you commit to dates or payments.
4. Calculate Pay Correctly (And Don’t Forget The Details)
Depending on the circumstances, you may need to handle:
- statutory redundancy pay (subject to eligibility, including length of service);
- contractual redundancy pay (if you offer enhanced terms);
- notice pay (statutory and/or contractual);
- accrued but untaken holiday pay;
- any bonuses/commission issues (this depends on the contract wording).
If you’re unsure, it’s worth getting advice - payroll errors can create wage claims and sour the exit unnecessarily.
5. Offer An Appeal
An appeal stage can sometimes feel like an extra step you’d rather avoid, but it’s usually a worthwhile safeguard. It gives you a chance to correct any scoring issues, address misunderstandings, and show overall procedural fairness.
Common Mistakes That Make Redundancies Risky (And How To Avoid Them)
Most redundancy disputes aren’t caused by the business needing to restructure. They come from avoidable process errors - often made by time-poor founders trying to act quickly.
Mistake 1: Treating The Redundancy Meeting As A “Decision Meeting”
If you walk into the redundancy meeting with a pre-written dismissal letter and no openness to feedback, you’re exposed. Consultation needs to happen before the final decision.
What to do instead: label the role “at risk”, share information, invite feedback, and document that you considered alternatives.
Mistake 2: Using Redundancy To Avoid Managing Performance
If the real issue is capability, redundancy can look like a shortcut - and that can backfire.
What to do instead: keep your processes distinct. If you need stronger foundations generally, having clear Employment Contract terms and performance management procedures helps you manage issues earlier, before you reach a crisis point.
Mistake 3: A “Handpicked” Pool Or Subjective Scoring
Unfair selection is one of the fastest routes to an unfair dismissal claim. Even a well-intentioned manager can slip into “who we can’t afford to lose” rather than objective criteria.
What to do instead: define the pool rationally, score consistently, and keep evidence for each score.
Mistake 4: Missing Discrimination Risks
Selection criteria that penalise pregnancy-related absence, disability-related absence, or part-time working (often linked to childcare responsibilities) can create discrimination exposure.
What to do instead: sense-check your criteria and scoring for Equality Act risks. If in doubt, get advice before scoring is final.
Mistake 5: Not Looking For Suitable Alternative Employment
Even if you’re small, you should still consider whether there’s a suitable alternative role. This is especially important where the employee has long service, or where you have multiple roles that could be reshuffled.
What to do instead: keep a simple redeployment checklist, and document what roles were considered and why they were (or weren’t) suitable.
Mistake 6: Rushing The Timeline
Moving too fast can make consultation feel like a box-ticking exercise.
What to do instead: plan your timeline early and check expectations around consultation periods, especially if multiple redundancies are proposed.
Key Takeaways
- A redundancy meeting should be part of a genuine consultation process - not a “we’ve already decided” conversation.
- Before you meet, get clear on the business rationale, the selection pool (if any), and objective selection criteria supported by evidence.
- Use the redundancy meeting to explain the proposal, discuss scoring fairly, and explore ways to avoid redundancy (including suitable alternative roles).
- Document everything: meeting notes, scoring rationale, alternatives considered, and follow-up actions - good records reduce disputes.
- If redundancy is confirmed, issue a proper dismissal letter covering notice, final pay, redundancy pay (if applicable), and the right to appeal.
- Watch out for common risk areas like discrimination in scoring, subjective pools, and mixing redundancy with performance issues.
This article provides general information only and isn’t legal advice. If you’d like help planning a fair redundancy process or reviewing your documents before you hold a redundancy meeting, you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.


