The Redundancy Process in the UK (2026): Selection, Consultation, HR1 and Alternative Work

Redundancy is a potentially fair reason for dismissal, but only if the process is fair too. This guide is for UK small and medium-sized employers planning job cuts, and for employees who've just been told their role is "at risk". It sets out the process step by step: checking it's a genuine redundancy, choosing the pool and selection criteria, individual and collective consultation, the HR1 notification for 20 or more redundancies, suitable alternative work, notice and appeals. Statutory redundancy pay is covered separately in our redundancy pay guide; this page is about getting the process right.

Quick answer

A fair UK redundancy process means: confirm the need and look at alternatives, define a fair selection pool, score people against objective criteria, consult each affected employee, look for suitable alternative work, then give notice, pay and a right of appeal. If you propose 20 or more redundancies at one establishment within 90 days, you must also consult representatives and file form HR1 — 30 days before the first dismissal for 20–99, 45 days for 100+.

• No consultation almost always means an unfair dismissal

• Protective award for failing to consult collectively: up to 180 days' pay per employee (from 6 April 2026)

• Alternative job offers come with a 4 weeks trial period

• Staff on or back from maternity, adoption or shared parental leave get priority for vacancies

• An extra organisation-wide trigger for collective consultation is expected in 2027

Is it a genuine redundancy?

In law, a redundancy happens when the business closes, closes the workplace where the employee works, or needs fewer employees to do work of a particular kind. That covers a café shutting a second branch, a manufacturer automating a packing line, or an agency merging two account manager roles into one. It doesn't cover replacing one person with another to do the same job, or using "redundancy" to remove someone whose performance or conduct you'd rather not deal with. If a role you've made redundant is advertised again a few weeks later, a tribunal will ask hard questions.

Before you decide, GOV.UK expects you to consider alternatives. Common ones are asking for volunteers for voluntary redundancy or early retirement, stopping casual labour or freelancers, restricting recruitment and filling vacancies internally, reducing or banning overtime, and flexible working. Short-time working or temporary lay-offs are possible only where the contract allows them or staff agree. Showing that you thought about these — and why they didn't work — is part of a fair process.

Voluntary redundancy needs care. Acas says to offer it widely and select fairly among volunteers, so the scheme isn't indirectly discriminatory. Volunteering doesn't guarantee selection, and volunteers still count towards the number of proposed redundancies for collective consultation purposes.

The redundancy process step by step

1. 1

   Plan and check alternatives

   Document the business reason, the roles affected and alternatives considered. Count proposed redundancies per establishment over 90 days.

2. 2

   Notify and elect representatives if 20+

   File form HR1 before consultation starts. Use union or existing representatives, or run an election.

3. 3

   Tell employees they're at risk

   Explain why, the pool, the proposed criteria and how consultation will work.

4. 4

   Consult

   Meet each affected employee at least once, plus representatives if collective. Genuinely consider suggestions.

5. 5

   Select fairly

   Score everyone in the pool against agreed criteria with written evidence; share individual scores.

6. 6

   Look for alternative work

   Offer suitable vacancies in writing, with a 4 weeks trial period.

7. 7

   Confirm, give notice and pay

   Confirm the decision in writing with notice dates and a redundancy pay breakdown.

8. 8

   Offer an appeal

   Let the employee challenge selection or process before someone not involved in the decision.

Choosing the selection pool

The pool is the group of employees you select from. Acas says to include all roles that are the same or similar, and roles with similar skills may belong in it too. If you're cutting one of three delivery drivers, the pool is normally all three. If you're cutting a bookkeeper role and an administrator could easily do bookkeeping, you may need to consider a wider pool. Check any agreement with a recognised union and your own redundancy policy before you fix it.

A pool of one is possible when a role is genuinely unique — the only marketing executive in a ten-person firm, say — but it needs a reasoned explanation. Tribunals look at whether the employer genuinely applied its mind to the pool; a pool drawn around one person to produce a pre-decided result is a common route to an unfair dismissal finding. Where the whole site closes, there's no selection at all, but you still have to consult and look for alternatives elsewhere in the business.

Fair selection criteria and scoring

Acas says criteria should be as objective and measurable as possible and applied in the same way to everyone in the pool. Typical criteria are work performance, skills and qualifications, attendance and disciplinary record. You can weight them — attendance might be scored out of 5 and performance out of 15 — and you should have written evidence for each score: appraisals, training records, absence logs, disciplinary letters.

Some things can't be used. Absences connected to disability, pregnancy or maternity must be excluded from attendance scores. You can't select someone because they've taken maternity, paternity, adoption, shared parental, parental bereavement, dependants' or carer's leave, because they're a union member or representative, part-time or fixed-term, or because they complained about working time or the minimum wage, or blew the whistle — those dismissals are automatically unfair. GOV.UK adds that length of service can be used only if you can justify it, and using it as the only criterion is likely to be age discrimination.

Here's how a small manufacturer might score a pool of four machine operators when it needs to lose one role.

Callum scores lowest, so he's provisionally selected. Before confirming, the employer shares his scores and the evidence with him, lets him challenge them in a consultation meeting and checks whether any of his absence related to a disability. Ideally two people score independently. If Callum points out that two absences were hospital appointments for a condition that may be a disability, they come out and his scores are re-run. Callum then gets a right of appeal.

Individual consultation: what's required for every redundancy

You should always consult employees whose jobs are at risk, even if only one person is affected. GOV.UK says redundancies made without consultation will almost certainly be unfair. Acas notes that the law doesn't set a minimum or maximum length for individual consultation, but it must be meaningful: you must genuinely consider each person's points, including suggestions you reject, and you don't need to reach agreement for it to end.

In practice that means at least one private meeting with each affected employee — usually two or three in a fair process. A first meeting explains the proposal and the pool; a second goes through their individual score and any alternatives they've suggested; a final one confirms the outcome. Acas suggests letting employees bring a companion and making sure the managers leading meetings are trained and can answer questions. Phone or video meetings are fine if you both agree and there's a clear need. Include employees who are off sick or on maternity leave; leaving them out is a classic error.

Write down what was said and how you responded. If an employee suggests cutting their hours instead of losing the job, record that you looked at it and why it does or doesn't work. Those notes are your evidence if the dismissal is challenged — and, from 1 January 2027, more employees will be able to challenge it, because unfair dismissal protection starts after 6 months instead of 2 years. See our unfair dismissal guide.

Collective consultation: 20 or more redundancies

Collective consultation under section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992 applies when you propose to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less. Count every proposed dismissal, including volunteers and people you'd redeploy if they refuse a new role. Don't stagger cuts into separate 90-day windows to stay under 20; if they're part of one plan, a tribunal will add them together.

Collective consultation thresholds

Proposed redundancies at one establishment (90 days)	Minimum before first dismissal	HR1 deadline
Fewer than 20	No statutory minimum (individual consultation still required)	Not required
20 to 99	30 days	Before consultation starts and at least 30 days before the first dismissal
100 or more	45 days	Before consultation starts and at least 45 days before the first dismissal

Fewer than 20

Minimum before first dismissal

No statutory minimum (individual consultation still required)

HR1 deadline

Not required

20 to 99

Minimum before first dismissal

30 days

HR1 deadline

Before consultation starts and at least 30 days before the first dismissal

100 or more

Minimum before first dismissal

45 days

HR1 deadline

Before consultation starts and at least 45 days before the first dismissal

You must consult "appropriate representatives": a recognised trade union for the affected staff, or otherwise existing elected representatives (for example under an information and consultation arrangement) or newly elected employee representatives. Consultation must start in good time and be carried out with a view to reaching agreement, covering ways of avoiding the dismissals, reducing the numbers and mitigating the consequences.

You must give representatives in writing: the reasons for the proposals, the numbers and descriptions of employees you propose to dismiss, the total number of that description at the establishment, the selection method, how the dismissals will be carried out and over what period, and how redundancy payments will be calculated beyond the statutory minimum. You should still consult individuals too. Wait until collective consultation has finished before issuing dismissal notices; the 30- or 45-day minimum is the earliest a dismissal can take effect, not a box to tick.

Electing employee representatives

If there's no union and no existing representatives, the affected employees must be invited to elect representatives, and you must allow enough time for that before consultation. The rules require you to make suitable arrangements so that the election is fair: you decide how many representatives are needed to represent all affected employees and their term of office; candidates must be affected employees; no affected employee can be unreasonably excluded from standing; everyone affected can vote; and voting is in secret as far as reasonably practicable, with votes counted accurately. If employees don't elect anyone after a reasonable invitation, you must give the written information to each affected employee directly.

Representatives have the right to reasonable paid time off to carry out their role and protection from detriment and dismissal because of it, and you must give them access to affected staff and facilities such as a room and a phone.

Form HR1: notifying the Redundancy Payments Service

When collective consultation applies you must notify the Redundancy Payments Service, part of the Insolvency Service, using form HR1, which is submitted online. GOV.UK says to do this before consultation starts, and at least 30 days before the first dismissal for 20 to 99 redundancies, or 45 days for 100 or more. A copy must go to the employee representatives. The form asks for the establishment, the numbers and types of roles affected, the reasons, the proposed selection method and the timetable.

Failing to notify is a criminal offence, and GOV.UK warns of an unlimited fine. The HR1 doesn't need government approval; it's notice so that services such as Jobcentre Plus can offer support to affected staff. If your plans change — the numbers rise above 99, or you withdraw the proposals — update the Redundancy Payments Service.

The cost of getting collective consultation wrong

If you fail to consult or to notify properly, a recognised union, the representatives or affected employees can ask a tribunal for a protective award. From 6 April 2026, the Employment Rights Act 2025 doubled the maximum from 90 days' pay to 180 days' pay per affected employee for dismissals on or after that date. There's no qualifying service, and the week's pay isn't capped, so it's based on actual gross pay. Tribunals start from the maximum and reduce it only for mitigating circumstances, so a complete failure to consult tends to attract the full award.

Take a printing firm that makes 22 staff redundant at its Leicester site without consulting, with average gross pay of £600 a week. 180 days is about 25.7 weeks, so the potential protective award is roughly 22 × £600 × 25.7 = £339,240 — on top of statutory redundancy pay, notice pay and any unfair dismissal claims. Under the old 90-day cap the same failure would have cost about half that.

Suitable alternative employment and trial periods

Before dismissing, you must look for suitable alternative work anywhere in the business, including associated companies. GOV.UK says a valid offer must be unconditional and in writing, made before the current contract ends, explain how the new role differs, be a genuine offer rather than an invitation to apply, and start within four weeks of the old job ending. Suitability depends on pay, hours, location, status and the employee's skills and circumstances.

The employee is entitled to a 4 weeks trial period in the new role, which can be extended by written agreement for retraining. If either side decides during the trial that the job isn't suitable, the employee keeps the right to redundancy pay. If the job was suitable and they unreasonably refuse it, they can lose their statutory redundancy pay.

Employees who are pregnant, or on or returning from maternity, adoption or shared parental leave, must be offered any suitable vacancy ahead of everyone else, even better-qualified colleagues. For maternity and adoption, that protection lasts until 18 months after the birth or placement.

Worked timeline — 22 redundancies at one site

Mon 2 Nov 2026

HR1 filed; election of representatives announced

Tue 10 Nov

Representatives elected; collective consultation starts with written information

10 Nov – 11 Dec

Weekly meetings with representatives; individual meetings and score sharing

Thu 10 Dec

Earliest date the first dismissal could take effect (30 days from 10 Nov)

Fri 11 Dec

Consultation concluded; outcome letters and notices issued

Jan–Feb 2027

Notice periods end; redundancy pay with final salary

Notice, pay and time off to look for work

Once the decision is confirmed, give each employee the notice in their contract or the statutory minimum, whichever is longer — at least one week for one month to two years' service, then one week per year up to 12 weeks. Our notice period guide explains pay in lieu. Employees with two years' service get statutory redundancy pay worked out by age and service with a week's pay capped at £751 (maximum £22,530) — see the redundancy pay guide. Tax on the package is covered in the termination payments guide.

Employees with at least two years' service, counting the notice period, are entitled to reasonable time off during notice to look for work or arrange training. Acas confirms the statutory pay for that time off is capped at 40% of a week's pay however much time is taken — so on a £500 weekly wage the legal minimum is £200 — although many employers pay in full.

Finally, offer an appeal. Acas lists it as a step in its redundancy process, and a fair appeal heard by someone not involved in the selection can fix scoring errors before they turn into a tribunal claim. Many exits at this stage are also finalised through a settlement agreement, particularly where an enhanced package is on offer.

Worked example: a small business cutting two roles

Maria owns a 14-person garden landscaping company in Bristol. Two large contracts end in November 2026, and she needs two fewer labourers out of a team of seven. Because she's proposing fewer than 20 redundancies, collective consultation and the HR1 don't apply, but individual consultation does.

Maria's redundancy process

Step 1

7 at risk

need to lose 2

Step 2

1 volunteer

accepted

Step 3

Score 6

scores shared

Step 4

Correct error

dependants' leave removed

Step 5

Alternative role

4-week trial

Step 6

Notice and pay

appeal offered

She writes to all seven labourers putting them at risk, explaining the lost contracts, the pool and the proposed criteria — performance, qualifications such as chainsaw and pesticide certificates, attendance excluding disability- and pregnancy-related absence, and disciplinary record — and invites ideas. At the first meetings, one labourer asks about reducing to four days a week and another volunteers for redundancy. Maria accepts the volunteer, which reduces the cuts needed by one. She scores the remaining six, shares each person's scores, and holds second meetings. One labourer's low attendance score turns out to include time off for dependants; she corrects it, and the lowest scorer changes.

She offers the at-risk employee a vacancy as a yard assistant at slightly lower pay, in writing, with a four-week trial. He tries it for three weeks and decides it isn't for him; because the role involved a significant pay cut and different duties, Maria agrees it wasn't suitable and pays his statutory redundancy pay. Both leavers get written confirmation of notice, a pay breakdown and an appeal right. The process took five weeks and left a clear paper trail.

What changes in 2027

The Employment Rights Act 2025 adds a second, organisation-wide trigger for collective consultation alongside the existing 20-at-one-establishment rule. The government consulted until 21 May 2026 on where to set it, with a fixed number between 250 and 1,000 redundancies across the whole employer as its preferred option, or a tiered approach based on headcount. business.gov.uk says further changes to the thresholds are expected in 2027, but no final figure had been published at the time of writing, and it needs regulations approved by Parliament. It mainly affects multi-site employers.

Two other 2027 changes matter for redundancies. From 1 January 2027 unfair dismissal protection starts after 6 months, so far more employees can challenge an unfair selection, and the cap on the compensatory award is removed. And the government's timeline lists new fire and rehire protections for January 2027, which will make dismissing staff for refusing contract changes much riskier — relevant if you're considering changing terms as an alternative to redundancy. None of this applies in Northern Ireland, which has its own rules and its own limits.

Common mistakes

Deciding before consulting. Announcing names on day one and then "consulting" makes the dismissals unfair. Consult on proposals, not decisions.

Subjective criteria. "Attitude" or "flexibility" without evidence invites challenge. Use measurable criteria and keep the evidence.

Counting protected absence. Disability-, pregnancy- and maternity-related absence must come out of attendance scores.

Forgetting people on leave. Employees off sick or on family leave must be consulted and considered for alternatives — and some have priority.

Missing the HR1 or the 90-day aggregation. Splitting one plan into two batches of 15 won't avoid collective obligations.

Issuing notices too early. Notices should follow the end of consultation, not run alongside it.

Redundancy process checklist

0/10

• Business case written down; alternatives considered and recorded
• Proposed redundancies counted per establishment over 90 days
• HR1 filed and copied to representatives if 20 or more
• Representatives identified or elected fairly
• Pool defined and explained
• Objective criteria with written evidence; protected absence excluded
• At least one individual consultation meeting with each affected employee, including those on leave
• Suitable vacancies offered in writing, with priority for protected-leave employees
• Notice, redundancy pay and time off to look for work confirmed in writing
• Appeal offered and heard by someone not involved

Share Print

Official links

• Making staff redundantGOV.UK employer guidance
• Form HR1: advance notification of redundanciesOnline form for 20+ redundancies
• Acas: managing staff redundanciesTen-step guide and templates
• Collective redundancy changes180-day protective award
• Collective redundancy threshold consultationOrganisation-wide trigger
• Calculate statutory redundancy payGOV.UK calculator

What to do next

Write down the business reason and the numbers per site first — that tells you whether you're in individual-only or collective territory and when the HR1 is due. Then draft the at-risk letter, pool and scoring matrix before you speak to anyone. Work out each person's entitlement with the redundancy pay guide and notice period guide, and if a business transfer is involved rather than a closure, read our TUPE guide — TUPE has its own consultation rules. The Acas helpline on 0300 123 1100 is free for both employers and employees.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the correct redundancy process in the UK?

Confirm there's a genuine redundancy and consider alternatives, identify the pool and fair selection criteria, consult the affected employees (and representatives if 20 or more are proposed at one site within 90 days), score fairly, look for suitable alternative work, then give notice and pay, and offer an appeal. Skipping consultation almost always makes the dismissal unfair.

How long does redundancy consultation last?

For fewer than 20 proposed redundancies there's no set minimum, but consultation must be genuine and long enough to consider people's suggestions. For 20 or more at one establishment within 90 days, the first dismissal can't take effect until 30 days after consultation starts, or 45 days for 100 or more.

When do I need to send form HR1?

When you propose 20 or more redundancies at one establishment within 90 days. Submit it online to the Redundancy Payments Service before consultation starts and at least 30 days before the first dismissal (45 days for 100 or more). Not notifying is a criminal offence with an unlimited fine.

Can I be made redundant while on maternity leave?

Yes, if the role is genuinely redundant and selection isn't connected to pregnancy or leave. But you must be offered any suitable alternative vacancy ahead of other employees. That priority runs from when you tell your employer you're pregnant until 18 months after the birth, and also covers adoption and shared parental leave.

Is last in, first out a fair redundancy selection method?

Rarely on its own. Length of service tends to favour older workers, so using it as the only criterion is likely to be indirect age discrimination unless you can objectively justify it. Acas recommends a mix of objective, measurable criteria such as performance, skills, attendance and disciplinary record, with written evidence for every score.

What happens if an employer doesn't consult properly on collective redundancies?

Representatives, or affected employees where there were none, can claim a protective award. For dismissals from 6 April 2026 it's up to 180 days' pay for each affected employee, based on actual gross pay with no weekly cap. It's on top of redundancy pay and any unfair dismissal compensation.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 13 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Making staff redundant — GOV.UK · accessed 13 October 2026
2. 2.Select employees for redundancy — Acas · accessed 13 October 2026
3. 3.Redundancy consultations — Acas · accessed 13 October 2026
4. 4.Managing staff redundancies — Acas · accessed 13 October 2026
5. 5.Finding a job with a new employer (your rights during redundancy) — Acas · accessed 13 October 2026
6. 6.Collective redundancy (employment changes for employers) — Department for Business and Trade (business.gov.uk) · accessed 13 October 2026
7. 7.Make Work Pay: threshold for triggering collective redundancy obligations — Department for Business and Trade (GOV.UK) · accessed 13 October 2026
8. 8.Government consults on collective redundancy thresholds — Lewis Silkin · accessed 13 October 2026