How to conduct a redundancy consultation

Consultation is not just telling employees that they are being made redundant — it is a two-way process that takes place before the decision is finalised. Genuine consultation means: explaining the proposals; giving employees the opportunity to comment and ask questions; and genuinely considering their feedback before making a final decision. If the decision has already been made before consultation begins, it is not genuine consultation.

At the start of consultation, provide employees with: the reasons for the proposed redundancies; the number and type of roles at risk; the proposed selection method; how the redundancy payments will be calculated; and the proposed procedure and timescale. This information should be provided in writing.

Invite each at-risk employee to an individual consultation meeting. At the first meeting: explain the business case for redundancy; explain their provisional selection score (if applicable); ask for their views on the proposals; ask whether they have any suggestions for avoiding redundancy; discuss suitable alternative roles; and explain the next steps and timescale. The employee has the right to be accompanied by a work colleague or trade union representative.

After the first consultation meeting, give employees reasonable time to consider the proposals and to make any representations they wish. They may want to challenge their selection score, suggest alternatives to redundancy, or raise concerns about the process. All representations must be genuinely considered.

Hold at least a second consultation meeting to: respond to any representations made; update on any changes to the proposals; discuss any suitable alternative vacancies that have arisen; and if redundancy is still proposed, begin to discuss the termination arrangements (notice period, final pay, redundancy payment).

Throughout the consultation, genuinely consider alternatives to redundancy, including: reduced hours; pay freezes or cuts (with employee agreement); redeployment to other roles; natural attrition; voluntary redundancy; and short-time working or lay-off. Document what alternatives were considered and why they were or were not adopted.

If proposing 20 or more redundancies at one establishment within 90 days, collective consultation with elected employee representatives (or trade union representatives) is required in addition to individual consultation. The minimum collective consultation period is 30 days for 20–99 redundancies and 45 days for 100+. Collective consultation must begin before individual consultation is completed.