This guide is maintained as a current resource for July 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
A comprehensive guide explaining how employers can lawfully select employees for redundancy in England and Wales, covering fair selection criteria, consultation, alternatives, appeals, and protections against unfair dismissal and discrimination.
Redundancy is a formal process where an employer reduces staff numbers because certain roles are no longer required. In England and Wales, employers cannot arbitrarily choose who is made redundant. The law mandates that redundancy selection must be fair, objective, and non-discriminatory, ensuring employee rights are protected and reducing the risk of claims to an employment tribunal.
Legal Framework
Redundancy and the associated selection processes are governed by:
- Employment Rights Act 1996 – defines redundancy and employee protections;
- Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA) – regulates collective redundancies;
- Equality Act 2010 – prohibits discrimination in redundancy selection;
- Acas Code of Practice on Redundancy – provides guidance on fair procedures.
Failure to follow legal requirements can result in claims for unfair dismissal, discrimination, or protective awards in collective redundancy situations.
Selection for Redundancy: Principles
Employers must apply selection criteria that are:
- Objective – based on measurable and relevant factors;
- Transparent – clearly communicated to employees;
- Consistent – applied equally to all employees in the selection pool;
- Non-discriminatory – protected characteristics under the Equality Act 2010 cannot influence decisions.
Arbitrary selection or choosing employees for reasons unrelated to the redundancy can be considered unfair dismissal.
Typical Selection Criteria
Common criteria used to determine which employees may be made redundant include:
- Skills, qualifications, and experience relevant to the remaining roles;
- Performance and appraisal records;
- Attendance and disciplinary records;
- Length of service.
These criteria should be documented, weighted, and applied consistently to all employees in the relevant pool.
Consultation Requirements
Even when the employer applies fair criteria, consultation is mandatory:
- Employees must be informed of the proposed redundancy;
- They must be given an opportunity to discuss the selection and suggest alternatives;
- Meaningful consideration must be given to proposals, including redeployment or retraining.
Proper consultation helps ensure that selection decisions are legally defensible.
Limits on Employer Choice
While employers can set criteria, they cannot choose redundancies arbitrarily:
- Decisions must not be influenced by personal preference;
- Protected characteristics such as age, sex, race, disability, religion, or union membership cannot play a role;
- Selection must be applied consistently across all affected employees.
Tribunals assess whether criteria were fair, objective, and consistently applied. Failure to comply may lead to awards of compensation for unfair dismissal or discrimination.
Appeals and Review
Employees have the right to appeal redundancy decisions. Employers should:
- Provide a clear appeals procedure;
- Review the selection process objectively;
- Document the review and final decision.
An effective appeal process reduces tribunal risk and promotes fairness.
Common Pitfalls
- Using subjective or inconsistent criteria;
- Failing to consult employees;
- Ignoring redeployment or alternative options;
- Selecting employees based on protected characteristics or personal preference.
Avoiding these pitfalls ensures that redundancy decisions are lawful and defensible.
Key Takeaways
Employers cannot simply choose who is made redundant. The law in England and Wales requires that selection is objective, fair, and non-discriminatory, using clearly defined criteria applied consistently to all employees. Employers must consult employees, consider alternatives, and provide the opportunity for appeal. Proper adherence reduces the risk of employment tribunal claims and ensures lawful and defensible redundancy decisions.
