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.
Comprehensive guide to how employers must handle redundancy selection fairly in England and Wales, explaining selection pools, objective criteria, meaningful consultation, legal protections, appeals processes, and practical guidance to ensure compliance with employment and discrimination law.
Redundancy occurs when an employer needs to reduce the workforce because the business no longer requires employees to do certain work. Even when redundancy is necessary, employers must conduct the process fairly to avoid claims of unfair dismissal, discrimination, or breach of contract. Fair selection is a central part of this process. This guide explains what fairness means in legal and practical terms, what employers must do, and how employees can understand their rights.
What Fair Redundancy Selection Means
A fair redundancy process treats employees objectively, consistently, and without discrimination. Employers must identify who is at risk, apply clear criteria to decide who will be made redundant, consult affected employees, and follow legal protections. Failure to do so can lead to claims at Employment Tribunals for unfair dismissal or discrimination.
Step‑by‑Step: Fair Redundancy Selection
1. Establish the Need for Redundancy
Before any selection, an employer must confirm there is a genuine need for redundancy. This typically arises where the business changes, work ceases or reduces, and there is no longer sufficient work of a particular kind. This step feeds into the broader redundancy process and must be communicated clearly to employees.
2. Define the Selection Pool
A selection pool is the group of employees from whom redundancies will be chosen. It must include all employees doing the same or similar work that is potentially at risk. Employers may need multiple pools if different roles are affected. Excluding relevant employees without objective justification can render the process unfair.
A pool of one may sometimes be legitimate (for example, where only one role is redundant), but if several employees perform similar tasks, they should usually be included in the same pool.
3. Set Objective and Measurable Selection Criteria
Selection criteria must be objective, measurable and non‑discriminatory. They should be applied consistently across the pool and linked to legitimate business needs. Common lawful criteria include:
- Skills, qualifications and experience relevant to future business needs.
- Performance (supported by documented appraisals and evidence).
- Attendance records that do not include absences related to protected characteristics, such as disability or pregnancy.
- Disciplinary records where relevant and accurately recorded.
Employers should avoid criteria that are overly subjective (such as “team fit” without definition) or that indirectly discriminate against employees with protected characteristics under the Equality Act 2010 (for example, using criteria that disproportionately disadvantage one group).
4. Consult Meaningfully with Employees
Consultation is legally required and must be meaningful. Employees (or their representatives) should be informed of the selection pool, criteria, and how they will be applied. They should also have an opportunity to ask questions, make representations, and propose alternatives. Consultation before final decisions helps ensure fairness and reduces the risk of tribunal claims.
For employers proposing 20 or more redundancies within 90 days, collective consultation rules apply, requiring longer consultation periods and involvement of employee representatives or trade unions.
5. Apply and Record Selection Consistently
Once the criteria are agreed, employers must apply them consistently to every member of the pool. Many employers use a scoring system: each employee is scored against each criterion, and those with the lowest total scores are at higher risk of redundancy. Records of scoring and the decision‑making process should be maintained to demonstrate fairness if challenged.
6. Consider Alternatives and Redeployment
Fairness also requires employers to consider alternatives to redundancy. If suitable roles exist elsewhere in the organisation, these should be offered to employees at risk. Employees usually have a statutory right to a trial period in a suitable alternative role, and rejecting a suitable offer without reasonable grounds can affect their redundancy rights.
7. Offer an Appeals Process
A well‑run process includes a clear appeals procedure. If an employee believes the selection or scoring was unfair or the process was flawed, they should have the opportunity to appeal to someone who was not involved in the original decision. This can correct errors early and reduce tribunal claims.
Legal Protections Against Unfair Selection
Unfair Dismissal Claims
Employees with two years' continuous service can bring a claim for unfair dismissal if the redundancy selection process was unfair. A tribunal will consider whether the employer acted reasonably in establishing pools, criteria and consultation.
Discrimination Claims
Selection decisions must not discriminate directly or indirectly on grounds of protected characteristics such as age, sex, race, disability, pregnancy and maternity, religion or belief, or sexual orientation. Discrimination in redundancy selection can lead to automatic unfair dismissal and discrimination claims being brought concurrently.
Common Challenges and Practical Context
- Unclear or subjective criteria: Tribunals scrutinise whether criteria were genuinely objective and applied consistently; vague criteria may weaken an employer's defence.
- Excluding similar roles from the pool: Omitting employees with similar duties without explanation can be challenged as unfair.
- Indirect discrimination: Even seemingly neutral criteria can be discriminatory in effect; employers should assess this risk before application.
Employees can request clarification on how criteria were applied and scores calculated. Transparency helps build trust and may resolve issues without tribunal action.
Key Takeaways
Fair redundancy selection in England and Wales requires employers to act objectively, consistently and in compliance with employment and discrimination law. Core elements include establishing an appropriate selection pool, using measurable and nondiscriminatory criteria, consulting meaningfully with employees, applying criteria fairly, considering alternatives, and offering an appeals process. Employers should document decisions and engage openly with employees to protect rights and mitigate risks of tribunal claims. Demonstrating fairness throughout the process helps ensure that necessary workforce changes are legally sound and respectful of employee rights.
