This guide is maintained as a current resource for September 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.
Guide to checking whether a redundancy process is fair in England and Wales, covering consultation requirements, selection pools, objective criteria, legal protections, alternatives to redundancy, and employment tribunal considerations.
Redundancy is a form of dismissal that occurs when an employer no longer needs certain roles due to business closure, workplace relocation, or reduced need for employees. In England and Wales, redundancy is only lawful where it is genuine and handled through a fair process. If the process is unfair, it may amount to unfair dismissal under the Employment Rights Act 1996.
Employees often focus on the outcome of redundancy, but fairness is assessed mainly on the procedure used. This includes consultation, selection methods, and whether the employer acted reasonably throughout. Employment tribunals regularly examine whether employers followed a fair and consistent process supported by evidence and objective criteria.
1. Is There a Genuine Redundancy Situation?
The starting point is whether redundancy actually exists in law.
A redundancy is only genuine if the employer's need for employees has reduced or ceased because of:
- Closure of the business or a workplace
- Reduction in the need for a particular type of work
- Relocation of the business
If the employer replaces the role shortly afterwards or the work continues in substantially the same way, the redundancy may be challenged as potentially unfair dismissal rather than genuine redundancy.
2. Consultation: Was There Meaningful Discussion?
A fair redundancy process requires consultation before decisions are finalised.
Consultation should involve:
- Explaining why redundancies are being considered
- Discussing alternatives to redundancy
- Allowing employees to ask questions and respond
- Considering employee feedback in good faith
Employers must carry out meaningful consultation, even where redundancies are necessary. Failure to consult properly is a strong indicator of unfair dismissal.
Where 20 or more redundancies are proposed within 90 days, collective consultation rules apply, requiring engagement with employee representatives or trade unions and minimum consultation periods.
3. Was a Proper Selection Pool Used?
Employers should normally identify a “selection pool” of employees performing similar or interchangeable work. This ensures that employees are compared fairly rather than being selected arbitrarily.
A fair pool usually includes:
- Employees doing the same or similar roles
- Roles with overlapping skills or functions
Problems may arise where:
- Only one employee is placed in a pool without justification
- Employees performing similar work are excluded without explanation
- The employer uses a pool designed to target specific individuals
Employment tribunals often scrutinise whether the pool selection was reasonable in the circumstances.
4. Selection Criteria: Are They Objective and Measurable?
Once a pool is established, employers must use fair criteria to decide who is selected for redundancy.
Common fair criteria include:
- Skills, qualifications, and experience
- Performance or standard of work
- Attendance record (excluding protected absences)
- Disciplinary history
Fair criteria must be:
- Objective (based on evidence, not opinion)
- Consistently applied across all employees in the pool
- Capable of being measured and recorded
Warning signs of unfair selection
- Vague criteria such as “attitude” without measurable evidence
- Inconsistent scoring between employees
- Lack of documentation explaining decisions
- Criteria applied selectively or retrospectively
5. Prohibited or High-Risk Selection Factors
Certain reasons must not be used in redundancy selection, including:
- Pregnancy or maternity-related reasons
- Trade union membership or activity
- Part-time or fixed-term status
- Protected characteristics under the Equality Act 2010 (such as age, sex, disability, race, religion, sexual orientation)
Using these factors can make the dismissal automatically unfair and potentially discriminatory.
Even indirect discrimination can occur if neutral criteria disproportionately disadvantage a protected group without justification.
6. Consideration of Alternatives to Redundancy
A fair redundancy process requires employers to consider alternatives before final decisions are made.
These may include:
- Suitable alternative employment within the organisation
- Retraining or redeployment
- Reduced hours or job sharing
- Voluntary redundancy
Failure to genuinely explore alternatives is frequently relied upon in unfair dismissal claims.
7. Right to Suitable Alternative Employment
Employers are expected to look for other roles that the employee could reasonably perform.
If a suitable alternative exists and is not offered, this may indicate unfair process. This includes situations where:
- A similar role is filled externally shortly after redundancy
- The employee is not informed of internal vacancies during the process
8. Notice, Pay, and Procedural Requirements
A fair process must also comply with statutory and contractual requirements, including:
- Proper notice of dismissal
- Statutory or enhanced redundancy pay where applicable
- Clear communication of timelines and outcomes
Errors in procedure do not automatically invalidate redundancy but can contribute to a finding of unfair dismissal when combined with other issues.
9. Right to Appeal
Employees should normally be given the opportunity to appeal a redundancy decision.
A lack of appeal process or refusal to consider an appeal may indicate procedural unfairness, particularly where concerns about selection or consultation are raised.
10. Time Limits for Bringing a Claim
If redundancy is believed to be unfair, a claim may be brought to an employment tribunal.
Key time limit:
- Usually within 3 months less one day from the date of dismissal (or effective termination date)
Early action is important, particularly where consultation documents, scoring matrices, and communications may be required as evidence.
11. Practical Steps to Check Fairness
A structured way to assess a redundancy process includes checking:
- Whether a genuine redundancy situation exists
- Whether consultation was meaningful and documented
- Whether a fair selection pool was used
- Whether objective criteria were applied consistently
- Whether discrimination or prohibited factors were involved
- Whether alternatives and redeployment were properly considered
- Whether suitable vacancies were explored
- Whether appeal rights were provided
Where multiple weaknesses exist, the risk of unfair dismissal increases significantly.
Key Takeaways
A redundancy process is likely to be fair only where the employer can demonstrate a genuine business need, meaningful consultation, a properly constructed selection pool, and objective and consistently applied selection criteria. Fairness also depends on whether alternatives to redundancy were properly considered and whether the employee had access to appeal procedures. Failures in any of these areas may support a claim for unfair dismissal in an employment tribunal.
