Redundancy Toolkit

It’s not an easy time for small businesses in the UK. With changes to Minimum Wage, National Insurance and the Employment Rights Bill, redundancies are an unfortunate but realistic possibility for SMEs.

Whether you’re a business owner, an office manager or operations lead juggling HR tasks, or the solo HR professional in your team, it’s essential to handle this process with care, empathy and in compliance with redundancy laws in the UK.

That’s why we’ve created the redundancy toolkit for SMEs – a practical selection of checklists, guides, plans and letter templates, designed to make even the most challenging aspects of redundancy more manageable.

Who is this toolkit for?

This toolkit has been created specifically for small business professionals handling redundancy in addition to their usual roles:

SME business owners making tough decisions

Office managers who take on HR duties

Operations staff managing employee changes

Solo HR professionals looking for extra support

If you’re managing redundancies in the UK, this toolkit is here to provide the clarity, tools, and resources you need.

What's inside the redundancy toolkit?

This selection of resources covers key aspects you need to manage redundancies, as a guide, that is in line with UK redundancy law and Acas redundancy process. Here's what you'll get:

Step-by-step restructure checklist

Simplify your approach to restructuring with a clear and actionable plan

Complete guide to the redundancy process

Understand every step, including redundancy consultation, employee communication and transitions

Clear communication plan

Learn how to explain changes and manage expectations during both individual consultations and collective consultations with your team.

‘At risk’ letter of redundancy template

Save time and ensure compliance with a usable letter template that is professional and empathetic.

Consultation meeting agenda

Conduct effective individual consultations using detailed agendas that guide you through every essential point.

Compliance checklist

Stay on top of legal requirements to ensure your redundancy process is fair, transparent and aligned with UK redundancy law.

Transition and outplacement support checklist

Help affected employees move forward with tailored resources and guidance for their next steps.

Supportive solutions during a stressful time

We understand that managing redundancies is one of the hardest tasks for SMEs. That’s why this toolkit is a great place to start, to help you handle the process as smoothly as possible – whether you’re managing individual consultations, collective consultations, crafting a letter of redundancy template, or making other considerations. These tools are to help you create a process which is fair, compliant and compassionate.

Download your redundancy toolkit today

Frequently Asked Questions

Why do I need to fill out the information requested?

We will always keep your personal information safe. We ask for your information in exchange for a valuable resource in order to (a) send information that we think may be of interest to you by email or other means and (b) send you marketing communications that we think may be of value to you.
Is this really free?

Absolutely. Knowledge is power and sharing is caring. So here's some free know-how we hope you’ll find useful. Keep us in mind next time you have questions about managing your employees.
What is redundancy in the UK?

Redundancy is a type of dismissal due to a reduced need for workers. This usually happens when a business closes, moves, changes job roles, or has financial problems.
How does redundancy work in the UK?

In the UK, employers must follow a clear process when making redundancies, which includes informing employees, holding consultations, offering alternative roles if available, and providing redundancy pay if eligible. The process is designed to ensure fairness and transparency.
How much notice do I need to give employees for redundancy?
By law, employees are entitled to the following notice periods:
- If employed between 1 month – 2 years, at least one week’s notice
- If employed between 2 and 12 years, one week’s notice for each year
- If employed for 12 years or more, 12 weeks’ notice
What is a redundancy consultation?

A redundancy consultation is a formal process and legal requirement where employers must consult with employees who are at risk of redundancy. For smaller businesses, this could be an individual consultation. For larger businesses, a collective consultation may be required, especially if more than 20 employees are being made redundant.
What is the minimum redundancy pay an employee is entitled to?

In the UK, minimum redundancy pay depends on age and length of service. Employees with at least two years of continuous service are entitled to statutory redundancy pay, which is calculated based on age, length of service, and weekly salary (up to a maximum limit). The amount can be found on the official government website or calculated using an online redundancy pay calculator.
Can an employee be made redundant during their probation period?

Yes, an employee can be made redundant during their probation period, but the same legal process must be followed.
Can employees appeal a redundancy decision?

Yes, employees can appeal a redundancy decision if they believe the process wasn’t followed correctly or that they were unfairly selected. The appeal should be made in writing, and the employer must respond and consider the reasons for the appeal.
What is a redundancy selection process, and how should it be done?

The selection process involves choosing which employees will be made redundant. Employers should use fair and transparent criteria, such as performance, skills, qualifications, and attendance, to ensure no discrimination occurs. Employees should be consulted about the selection process.
Can an employee be rehired after redundancy?

Yes, if an employee is made redundant and their position is later re-established or similar roles become available, they may be offered reemployment. However, they should be given priority for the new role if they are capable of doing the job.
What support can employees receive during redundancy?

In addition to redundancy pay, employers are encouraged to provide outplacement support, such as helping employees find new jobs, offering career advice, or providing training. This support can help soften the impact of redundancy and assist employees in moving forward with their careers.
What happens if the redundancy process is not followed correctly?

If the redundancy process is not followed correctly, employees may have grounds to file a claim for unfair dismissal. It’s essential for employers to comply with redundancy laws and ensure the process is transparent, fair, and in line with UK employment law.
Do I need to make redundancies if my business is struggling financially?

While redundancy may be a necessary option for reducing costs, it is not the only solution. Employers should first explore other alternatives, such as reducing working hours, offering voluntary redundancy, or using furlough schemes (where available). Redundancy should only be considered when other options have been exhausted.

Disclaimer: For the latest legal guidance on redundancies, check out the full explainer from Acas. If you’re considering a redundancy, we always recommend speaking to an employment law specialist first and foremost. To do so, please contact an HR expert or reach out to our Partner team, who can put you in touch with an HR consultant.

The SME redundancy toolkit: practical support for tough decisions

What's inside the redundancy toolkit?

Supportive solutions during a stressful time

Frequently Asked Questions

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