Redundancy Selection Criteria in the UK: Fair, Lawful Decisions

Redundancies are never easy. But when your business needs to restructure or cut costs, getting your redundancy selection criteria right is critical.

Done properly, you’ll make fair, objective decisions, reduce the risk of Employment Tribunal claims and treat your team with respect throughout the process.

In this guide, we’ll walk through how to choose and apply redundancy criteria lawfully in the UK, with clear examples, step-by-step process tips, and the common pitfalls to avoid.

What Is Redundancy And Why Does Selection Criteria Matter?

Redundancy is a potentially fair reason for dismissal where you no longer need employees to do certain kinds of work, the work has diminished, or the business is closing. The legal framework largely comes from the Employment Rights Act 1996 and is supported by ACAS guidance.

Where more people do the affected work than you need going forward, you must select fairly from a pool. That’s where redundancy selection criteria come in. Your criteria should be:

• Objective and measurable (e.g. qualifications, skills, performance)
• Consistent across the pool
• Evidence-based and recorded
• Non-discriminatory under the Equality Act 2010

If you can’t demonstrate a fair process and fair criteria, the redundancy is likely to be an unfair dismissal. It’s a good idea to revisit your internal documents like your Workplace Policy and Staff Handbook to ensure your approach aligns with what employees have been told.

How Do You Define The Selection Pool?

Before you choose criteria, you need to decide who’s “in the pool”. A fair pool is about the work that’s disappearing, not the person you initially had in mind.

Think in terms of roles and interchangeability:

• Who currently does the same or similar work?
• Are there employees in different departments who could reasonably do this work with little training?
• Have job titles changed over time but the core duties are the same?

It’s often fair to include employees whose roles are interchangeable even if their job titles differ. Excluding someone who could reasonably do the remaining work can undermine your process.

Document your reasoning for the pool. If challenged, a clear, evidence-based rationale will help show you acted reasonably. For an end-to-end process overview, you may find it helpful to revisit the steps for Ending an Employment Contract fairly.

What Redundancy Selection Criteria Are Fair? (With Examples)

There’s no statutory list, but the test is fairness, objectivity and non-discrimination. Common, lawful redundancy selection criteria include:

1) Skills, Qualifications And Experience

Consider the future skills your business needs and assess who best meets them. Examples include:

• Relevant professional qualifications or certificates
• Demonstrated technical skills needed for the new structure
• Breadth of experience across key tasks

Tips for fairness:

• Score against clearly defined, business-critical criteria
• Use up-to-date records (training logs, qualifications, work portfolios)
• Explain the weighting you give to each skill area

2) Performance (Based On Evidence)

Performance is valid if you have objective evidence. Think:

• Recent appraisal scores or objective KPIs
• Sales or output figures verified by reports
• Quality metrics or error rates where those are tracked

Avoid subjectivity. Use a consistent timeframe (e.g. last 12 months) and ensure managers are trained on how to apply the scoring. If your Employment Contract or handbook sets out performance expectations, align your approach with those standards.

3) Disciplinary Record

It’s generally fair to factor in a genuine, recent disciplinary record that’s been handled properly. Use only live warnings and be consistent in how you treat different levels (e.g. a final written warning has a higher impact than a first written warning).

4) Attendance (Handled Carefully)

Attendance can be valid if applied carefully and based on accurate records. Crucially, you must exclude absences related to protected characteristics, such as:

• Pregnancy and maternity (including antenatal appointments)
• Disability-related absences (unless a proportionate, carefully assessed approach is justified and reasonable adjustments have been considered)
• Family leave or other statutory leave

Where attendance is used, be transparent about the timeframe and what’s included or excluded.

5) Flexibility And Future Business Needs

Reasonable, clearly defined flexibility can be relevant - for example, ability to work across product lines or systems after a restructure. Avoid criteria that indirectly discriminate (e.g. “can work any hours at short notice” could disadvantage caregivers unless it’s objectively justified).

Scoring Model: Bringing It Together

Most employers use a scoring matrix. For example:

• Skills/Qualifications (0–5)
• Performance Against KPIs (0–5)
• Disciplinary Record (0–3)
• Attendance (0–3; with protected absences excluded)
• Flexibility/Transferable Skills (0–3)

Weighting can be applied if certain criteria matter more for the future structure. Define what each score means (e.g. “5 = exceeds expectations with evidence X”). This improves consistency and reduces disputes.

Which Redundancy Criteria Should You Avoid (Or Treat With Caution)?

Some criteria are high risk or unlawful:

• “Last In, First Out” (LIFO): Age discrimination risks if it disproportionately affects younger staff. If used at all, it should not be the sole or primary criterion and must be justified.
• Age, Gender, Race, Religion, Sexual Orientation, Disability: Protected characteristics must never be used as criteria.
• Pregnancy/Maternity: You must not select someone because they are pregnant or on maternity leave. Special protections apply.
• Part-time or Fixed-term Status: Do not penalise on the basis of non-standard contracts where this links to protected rights.
• Absence Without Context: Penalising disability-related or pregnancy-related absence is discriminatory.
• Subjective “Attitude” or “Fit”: These are vague and prone to bias; avoid or convert into objective measures.

If in doubt, cross-check your criteria against your equality duties and the Employment Rights Act 1996 framework.

Redundancy Selection: The Step-By-Step Process

A fair process matters as much as fair criteria. Here’s a practical sequence that works for most small businesses.

Step 1: Establish The Genuine Redundancy

Define the business rationale (e.g. downturn, restructure, automation). Set out which roles are affected and why the work is reducing. Keep this written down for consultation.

Step 2: Identify The Selection Pool

Decide who does similar work or is interchangeable. Document your approach (and consider “bumping”, where a more senior employee at risk could move into a junior role and displace that person, if that is fair in your context).

Step 3: Choose Objective Criteria And Build The Matrix

Pick criteria that are measurable, aligned to future needs and non-discriminatory. Define scoring ranges and weightings up front. Train managers on consistent scoring.

Step 4: Gather Evidence

Collect performance data, training records, qualifications, attendance logs and disciplinary records. Make sure the information is accurate and up to date. If you maintain employee data centrally, ensure your Privacy Policy and internal data protection practices cover this processing.

Step 5: Consult Properly

Consultation is essential, even in small businesses. Share the rationale, the pool, the proposed criteria, and invite feedback and alternatives to redundancy (e.g. reduced hours, redeployment). If you’re proposing 20 or more redundancies at one establishment within 90 days, collective consultation rules apply.

Step 6: Score And Propose Provisional Selection

Score employees independently by at least two managers if possible to reduce bias. Keep a clear audit trail. Share provisional scores with individuals and allow them to comment or correct factual inaccuracies.

Step 7: Consider Suitable Alternative Employment

Before confirming redundancy, consider redeployment into suitable vacancies, with trial periods where appropriate. If the new role requires adjustments to terms, review the process for Changing Employment Contracts to ensure you handle consent and consultation correctly.

Step 8: Confirm Outcome, Notice And Appeal

Issue outcome letters with reasons, notice or pay in lieu, and information about redundancy pay (statutory and any enhanced terms). Offer a right of appeal and hold the appeal with a different manager if possible. Ensure the final steps align with your contracts and any policies about Breach of Employment Contract to avoid procedural missteps.

Handling Equality, Maternity And Disability In Redundancy Selection

Fair criteria must be applied with care around protected characteristics:

• Maternity/Pregnancy: You can fairly select for redundancy if the role genuinely disappears, but you cannot base selection on pregnancy or maternity-related factors. Employees on maternity leave have special priority for suitable alternative vacancies.
• Disability: Consider reasonable adjustments to the redundancy process and the criteria (e.g. discount disability-related absence). If using performance or attendance metrics, think about whether adjustments or context are needed.
• Part-Time/Flexible Working: Don’t penalise employees for working patterns linked to protected rights (e.g. childcare).
• Age: Avoid criteria that indirectly disadvantage certain age groups (watch out for LIFO).

If you are unsure how a criterion interacts with a protected characteristic, pause and get advice. It’s better to adapt your approach than face a discrimination claim later.

Data Protection, Transparency And Record-Keeping

Redundancy selection involves processing personal data, including potentially sensitive information (e.g. disability-related absences). Under UK GDPR and the Data Protection Act 2018, you should:

• Identify a lawful basis (legitimate interests is commonly used for HR processes)
• Be transparent about processing via your employee privacy notices
• Limit use of special category data and apply appropriate safeguards
• Keep data accurate, secure and only as long as necessary (retention schedules help)

If your privacy documentation or internal practices need an update before you start, consider a short Data Protection Consultation to check that your HR processes and privacy notices are fit for purpose.

Alternatives To Redundancy And Suitable Alternative Employment

Consultation should always explore ways to avoid dismissals. You can consider:

• Voluntary redundancy or voluntary reductions in hours
• Redeployment to suitable vacancies and trial periods
• Job sharing or re-training for new duties
• Short-term cost controls (e.g. overtime freezes) if they could resolve the issue

If you offer a suitable alternative role and an employee unreasonably refuses it, they may lose the right to statutory redundancy pay. Make sure the offer is clear, and confirm any trial period in writing so both sides understand the terms in their Employment Contract.

Common Mistakes (And How To Avoid Them)

Here are the missteps we see most often in selection for redundancy - plus what to do instead.

• Starting With Names, Not Roles: Always define the pool based on roles and interchangeability before you think about individuals.
• Vague, Subjective Criteria: Replace “attitude” or “cultural fit” with tangible measures tied to the business’s future needs.
• No Evidence To Back Up Scores: Keep documents that justify each score (appraisals, training certificates, KPI dashboards).
• Penalising Protected Absences: Exclude pregnancy/maternity and disability-related absence from attendance criteria.
• Ignoring Consultation: Even in smaller teams, show your workings, listen to suggestions and consider alternatives.
• Using LIFO By Default: If you use length of service at all, make sure it isn’t the sole criterion and that you can justify it objectively.
• Skipping The Appeal Stage: A fair right of appeal can correct errors and reduce litigation risk.

Getting the process right from day one reduces risk and helps maintain trust across your team. If you’d like a second pair of eyes on your plan, our team can provide tailored Redundancy Advice suited to your business size and structure.

How To Communicate Redundancy Selection Decisions

Clear, humane communication matters. In your consultation meetings and outcome letters, aim to:

• Explain the business rationale simply and consistently
• Set out the pool, criteria and scoring approach you used
• Share the individual’s provisional score and invite comments
• Confirm the final decision, notice or pay in lieu, and redundancy pay details
• Offer a right of appeal, with a deadline and who will hear it

Make sure your letters and scripts line up with contractual requirements and your policies so you don’t inadvertently create a breach of contract. If you need a checklist for the final stages, review the process for Ending an Employment Contract fairly.

FAQs: Quick Answers On Selection For Redundancy

Can We “Auto-Select” A Role?

If an entire unique role is disappearing, there may be no selection required. But if other employees can do similar work (or the duties are spread across roles), a fair pool and selection process is needed.

Do We Have To Use The Same Criteria For Everyone?

Within a pool, yes - consistency is fundamental. Across different pools, criteria can differ if each pool has a clear business case and the measures are fair and objective.

How Far Back Should We Look For Evidence?

Usually the last 12 months is reasonable, but in some contexts (e.g. annual sales cycles) a longer window makes sense. Be consistent across the pool and explain your choice in consultation.

What About Collective Consultation?

If you’re proposing 20 or more redundancies at one establishment within a 90-day period, collective consultation obligations apply (including minimum consultation periods and notification to the Secretary of State). Specialist support is recommended in those scenarios.

Key Takeaways

• Start with roles, not people: define a fair selection pool based on the work that’s reducing and who is reasonably interchangeable.
• Use objective, non-discriminatory criteria: skills, qualifications, documented performance, live disciplinary record and carefully handled attendance are common options.
• Build a scoring matrix: define scores, weightings and evidence sources up front, and train managers for consistent application.
• Consult meaningfully: share your rationale, proposed criteria and pool, invite feedback and consider alternatives to redundancy.
• Handle equality issues with care: exclude pregnancy/maternity and disability-related absences from attendance scoring and consider reasonable adjustments.
• Keep data lawful and secure: ensure your privacy notices cover HR processing and apply UK GDPR principles to scoring and records.
• Offer redeployment and a fair appeal: suitable alternative employment and a clear appeal route reduce risk and support fairness.

If you’d like help setting up fair redundancy selection criteria, scripts and letters, our team can assist - from policy updates to one-off advice for tricky cases. You can reach us on 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.