Redundancy Process UK: Forms, Letters & Procedure

What this document is

Redundancy documents are the written tools an employer uses to manage a reduction in workforce lawfully and consistently. They sit across several stages of the process, from the initial redundancy policy that sets out how the business approaches these situations, through consultation letters, selection scoring matrices, offer letters for suitable alternative roles, and final dismissal notices confirming redundancy terms and payments.

The legal backbone comes from the Employment Rights Act 1996 and the Trade Union and Labour Relations (Consolidation) Act 1992, which together govern individual rights and the collective consultation rules that kick in when twenty or more redundancies are proposed at one establishment within a ninety-day window. ACAS guidance also plays a significant role in shaping what tribunals consider reasonable.

Good redundancy paperwork does three things at once. It explains what is happening and why, in language employees can actually follow. It demonstrates to a tribunal, should one ever be asked, that the employer acted fairly and consulted properly. And it creates an internal record of decisions, scores, and alternative roles considered, which protects the business long after the process has finished.

How to use this document

1. Plan the restructure and confirm the business case. Before any document is drafted, be clear on why redundancies are needed and which roles are at risk. Identify the pool of affected employees, the proposed timeline, and whether the numbers trigger collective consultation duties. This groundwork shapes every letter and policy that follows, so take the time to get it right. 2. Issue an at-risk announcement and begin consultation. Write to affected employees confirming their roles are at risk of redundancy and inviting them to consultation meetings. The letter should explain the business rationale, the proposed process, the selection criteria where relevant, and the timescales. For collective consultation, notify elected representatives or recognised unions and file an HR1 form with the Insolvency Service where required. 3. Apply objective selection criteria using a scoring matrix. Where a pool of employees is being reduced, use a selection matrix built around measurable criteria such as skills, performance, attendance excluding protected absences, and disciplinary record. Score consistently, document the reasoning, and avoid anything that could amount to discrimination. Share scores with affected employees and give them a genuine chance to challenge them during consultation. 4. Explore suitable alternative employment. Before confirming any dismissal, look for vacancies elsewhere in the business that the employee could reasonably do. Send a written offer of alternative employment where one exists, explaining any trial period and how pay or conditions compare. This step is a legal requirement in many cases and a practical one in all of them. 5. Confirm the outcome in writing and handle the exit properly. Once consultation is complete and no suitable alternative has been accepted, issue a written notice of redundancy setting out the dismissal date, notice period, statutory and any contractual redundancy pay, accrued holiday, and appeal rights. Provide a clear breakdown of payments and a right to appeal the decision internally before the employment ends.