Redundancy policies
Redundancy policies

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Redundancy policies
  • Policy documents
  • Collective agreements
  • Redundancy policy
  • One size does not fit all
  • Flexibility
  • How much detail?
  • Amending a policy
  • Policy terms
  • Policy introduction
  • more

This Practice Note highlights the issues for an employer to consider in relation to a redundancy policy, such as whether to have a formal policy at all and, if so, what terms and level of detail to incorporate.

Employers typically choose to deal with redundancies in one of three ways:

  1. an ad hoc approach—no formally-established arrangements, with practice varying according to the circumstances of each redundancy. This will be attractive where:

    1. the business is small and the numbers of redundancies are unlikely to trigger collective consultation obligations, and/or

    2. the employer wishes to avoid what may be perceived as interference in commercial matters by employee representatives

  2. a formal policy (see Policy documents below) setting out the approach that the employer will take but without seeking the agreement of trade unions or employee representatives to the terms of the policy. This may be attractive where:

    1. the employer is likely to face a number of redundancies in the future and wishes to provide consistency of process and a level of certainty for employees, and/or

    2. the employer wishes to avoid what may be perceived as interference in commercial matters by employee representatives

  3. a formal agreement (see Collective agreements below) negotiated and agreed between the employer and recognised trade union or employee representatives. This is appropriate for larger employers where there is collective bargaining