Single-Employee Redundancy Process in the UK: Employer Steps

Making one person redundant is one of those business decisions that can feel deceptively “simple” - until you realise how many legal and practical steps sit underneath it.

For small businesses, the stakes are high. If you get the redundancy process for one employee wrong, you could be looking at an unfair dismissal claim, discrimination allegations, a damaged team culture, or simply a costly delay when you need to restructure quickly.

The good news is that a fair redundancy process is very doable, even when you’re only making one person redundant. You just need to follow the right steps, document what you’re doing, and treat the redundancy as a genuine business change (not a way to remove a particular employee).

Below is a clear, employer-focused guide to the redundancy process for one employee in the UK, including what “fair” looks like in practice and what paperwork and conversations you should be thinking about.

What Counts As A Genuine Redundancy (And Why It Matters)

Before you start any redundancy process, it’s worth checking that redundancy is actually the correct legal route.

In UK law (primarily under the Employment Rights Act 1996), a redundancy situation usually arises where the business:

• Closes (or intends to close),
• Closes a workplace (or relocates in a way that removes the need for the role at that location), or
• Has a reduced need for employees to do work of a particular kind (for example: fewer sales leads, automation, reduced opening hours, loss of a key client, restructuring duties across the team).

This matters because redundancy is not supposed to be used as a “general exit strategy”. If the real issue is performance, conduct, or capability, you’ll usually need a different process (and different evidence). For example, if the role still exists but the employee isn’t meeting expectations, a structured approach like Performance Improvement Plans may be more appropriate.

Quick self-check: if you removed this employee tomorrow, would the business still need someone to do substantially the same job? If yes, you may not be in a true redundancy situation (or you may need a more careful restructure plan).

Do You Need A Different Process When It’s Just One Employee?

When employers hear “redundancy consultation”, they often think about large-scale layoffs and collective consultation rules. But the redundancy process for one employee is different in one key way: collective consultation obligations generally don’t apply when you’re making fewer than 20 redundancies at one establishment within 90 days.

That said, you still need an individual consultation process that is fair and meaningful.

In practice, a fair process for making one person redundant usually includes:

• A clear business reason for the restructure;
• Using a fair selection method (even if there’s only one person in the “pool”);
• Proper consultation meetings, with time for the employee to respond;
• Considering suitable alternative employment;
• Confirming the decision in writing, including notice and redundancy pay (where applicable); and
• Offering an appeal.

If you’re unsure about timing expectations, it can help to sanity-check your plan against typical redundancy consultation periods, even though individual consultation is more flexible than collective consultation.

Step-By-Step: Redundancy Process For One Employee

Here’s a practical, step-by-step roadmap you can follow. Depending on your business and the employee’s role, some steps will be quick, while others need more care.

1) Plan The Business Case (And Get Your Paper Trail Ready)

Start by setting out, in writing, why the redundancy is happening. Keep it factual and business-focused. Examples include:

• Revenue drop and cost-saving restructure;
• Loss of a key contract;
• Role duplication after a restructure;
• Technology change meaning less manual work;
• Closing a service line or location.

Tip: create a short “redundancy rationale” document for your internal file. If your process is ever questioned, you’ll be glad you wrote it down early, while the rationale was clear and consistent.

Also review the employee’s Employment Contract for notice provisions, redundancy clauses (if any), and any contractual enhanced redundancy pay terms.

2) Identify The Redundancy Pool (Even If It’s A Pool Of One)

Even when you’re making one person redundant, you should still consider whether:

• There is a wider “pool” of employees doing similar work; or
• The role is genuinely unique and only performed by one employee.

This is a common risk area for small businesses. If two people do broadly similar work, selecting only one without considering a pool can look unfair.

Example: If you have two admin assistants and only need one, your pool may be both assistants - even if you “know” which one you’d prefer to keep. The process should show a fair selection, not a pre-decided outcome.

3) Set Fair Selection Criteria (And Avoid Discrimination Traps)

If there is a pool (even a small one), you’ll need selection criteria. Even if the pool is genuinely one person, it’s still smart to document why they are the role affected and why there isn’t a wider pool.

Common fair selection criteria can include:

• Skills and qualifications relevant to the future needs of the business;
• Relevant experience;
• Performance records (based on objective evidence, not gut feel);
• Disciplinary record (carefully, and consistently applied);
• Attendance record (but be cautious - disability-related absences and pregnancy-related absences are high-risk).

Be careful: redundancy selection can easily stray into discrimination if the criteria disproportionately impact a protected group (for example, disabled employees, those on maternity leave, or older workers). If you’re relying on performance, make sure you can point to objective evidence and not informal impressions.

4) Hold The First Consultation Meeting (This Is The Start, Not The End)

Next, invite the employee to a consultation meeting. This is where many employers slip up: they treat the first meeting as a “decision meeting”.

Instead, your message should be:

• There is a risk of redundancy due to .
• No final decision has been made.
• You want to consult with them and explore alternatives.

In the meeting, explain:

• The reason for the proposed redundancy;
• The proposed selection pool/criteria (or why the role is unique);
• The process and likely timeline;
• That you’ll consider alternatives, including other roles;
• That they can share feedback, ask questions, and propose alternatives.

Practical tip: take notes (or have a note-taker) and share a copy afterwards. Documentation is your best friend in redundancy.

5) Consider Alternatives To Redundancy (And Document That You Did)

A fair redundancy process isn’t just about explaining the business situation. You should also consider reasonable ways to avoid redundancy, such as:

• Reducing hours (by agreement);
• Job share arrangements;
• Pay reductions (by agreement);
• Redeployment into another role;
• Training the employee to fill a different vacancy;
• Natural attrition or hiring freezes;
• Stopping contractors/freelancers first (depending on the structure of your workforce).

Where suitable alternative employment exists, you should consider offering it. This is a key fairness factor in redundancy cases.

If you want a deeper view on how this part works (and why it matters), it’s worth being familiar with the concept of suitable alternative employment.

6) Hold A Follow-Up Consultation Meeting (And Keep It Genuine)

After the first meeting, give the employee time to consider what you’ve said and respond. Then hold at least one follow-up meeting (sometimes more, depending on complexity).

In the follow-up meeting, you’ll usually cover:

• The employee’s feedback and any alternative proposals;
• Any questions about scoring/pooling (if relevant);
• Any suitable alternative roles or trial periods;
• Whether the redundancy proposal is still necessary.

Don’t rush this step. A quick process can be fair, but it must still be meaningful. If you look like you’ve already decided, the consultation risks being viewed as a tick-box exercise.

7) Make The Decision And Confirm The Outcome In Writing

If, after consultation and considering alternatives, redundancy is still the necessary outcome, you can confirm the decision in writing.

Your redundancy outcome letter should usually include:

• The reason for redundancy;
• The consultation steps you followed;
• The termination date;
• The notice period (and whether they’ll work it or receive pay in lieu, if applicable);
• Statutory redundancy pay (if eligible) and any enhanced redundancy pay;
• Holiday pay and any other final payments;
• Return of company property;
• The right to appeal and how to appeal.

Make sure your notice calculations are correct. Notice can be contractual and/or statutory, and you should apply whichever gives the employee the greater entitlement. If you need to sense-check, the rules around redundancy notice periods can be a helpful reference point.

8) Offer An Appeal (Yes, Even For One Employee)

An appeal is part of a fair dismissal process, including redundancy. For a small business, this can feel awkward - especially if there isn’t a different manager available to hear it.

Still, do what you reasonably can. If possible, have someone not previously involved hear the appeal. If that’s not possible, be transparent and aim for a genuinely open-minded review of the decision.

Key Legal Risks When Making One Person Redundant

Even when redundancy is genuine, claims often arise because the process wasn’t fair or the selection looked biased.

Here are the biggest legal risks to keep on your radar when making one person redundant:

Unfair Dismissal Risk

If the employee has two or more years’ continuous service, they usually have the right not to be unfairly dismissed. A redundancy dismissal can still be unfair if you don’t follow a fair process.

Common issues include:

• No real redundancy situation (role still exists);
• No consultation or sham consultation;
• Unfair pool/selection criteria;
• Not considering suitable alternative roles;
• Not allowing an appeal.

Discrimination Risk

Discrimination claims don’t require two years of service, and compensation can be significant.

Be especially careful if the redundancy selection could relate (directly or indirectly) to a protected characteristic such as disability, pregnancy/maternity, age, sex, race, religion or belief, or sexual orientation.

Other “Day One” Claim Risks (Not Discrimination, But Still High-Risk)

Some claims don’t require two years’ service and often arise alongside redundancy situations if the timing or context is sensitive. For example, risks can increase if the employee has recently raised protected disclosures (whistleblowing) or is involved in trade union membership or activities. These issues are not usually treated as “discrimination” claims, but they can lead to automatic unfair dismissal and/or unlawful detriment claims.

Breach Of Contract / Wrongful Dismissal Risk

If you fail to give the correct notice (or don’t follow contractual redundancy terms), you can face a breach of contract claim. This is why reviewing the Employment Contract early is so important.

Reputational And Team Morale Risk

This one isn’t strictly “legal”, but it matters. How you handle making one person redundant can affect the rest of your team’s trust in your leadership.

Clear communication, empathy, and consistency go a long way - and they usually support legal fairness too.

What Payments And Practical Steps Should You Budget For?

When planning the redundancy process for one employee, make sure you understand the likely cost of termination. Depending on the situation, you may need to pay:

• Statutory redundancy pay (if the employee has at least two years’ service and is an employee, not a worker/contractor);
• Notice pay (worked notice or pay in lieu, depending on the contract and what you agree);
• Accrued but untaken holiday pay up to the termination date;
• Any contractual entitlements (commission, bonuses, expenses, etc - check the contract wording carefully).

You should also plan the operational side:

• Handover and knowledge transfer;
• Removing system access and collecting company property;
• Internal communications (what you’ll tell the rest of the team);
• Updating staffing structures and responsibilities.

Small business tip: if your restructure involves changing other employees’ duties or roles, be mindful that “role changes” can have contract implications. If you need to change terms, you’ll want to approach it carefully - a redundancy process shouldn’t become a backdoor contract variation exercise.

Key Takeaways

• A fair redundancy process for one employee still requires a genuine redundancy reason, meaningful consultation, and proper documentation.
• Even if you’re only making one person redundant, you should consider whether there is a wider redundancy pool and whether selection criteria are needed.
• Consultation should start at “risk of redundancy” stage - avoid treating the first meeting as a done deal.
• You should actively consider alternatives, including redeployment and suitable alternative employment, and keep written notes showing what was considered and why.
• Confirm the outcome in writing with clear details on notice, redundancy pay, holiday pay, and the right to appeal.
• Legal risk commonly comes from process errors (unfair consultation, unfair selection, discrimination), not just from the business decision itself.

If you’d like help running a redundancy process for one employee (or stress-testing your documents and timeline), you can reach us at 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.