Redundancy Consultation – Why It Matters and What Employers Need to Know

Redundancy is never an easy subject. For managers, it can feel like the most challenging part of running a business; for employees, it can be unsettling and emotional. Once the decision has been made that redundancies are necessary, many employers question why they must still go through a formal consultation process.

On the surface, consultation may feel like prolonging a difficult situation. However, in UK employment law, redundancy consultation is not just a legal requirement — it is also a critical part of ensuring fairness, transparency, and trust. More importantly, it can sometimes lead to alternative solutions that benefit both the business and its people.

Why Consultation is Required

1. To Explore Alternatives

The primary purpose of consultation is to see whether redundancies can be avoided altogether. Employees may be aware of alternative roles, redeployment opportunities, or flexible working solutions that managers haven’t considered. By opening up the discussion, you may identify ways to retain valuable talent.

2. To Review the Selection Process

If a redundancy selection exercise has taken place, consultation provides the opportunity to check that the criteria were applied fairly and consistently. Employees can challenge or query how decisions were made, which reduces the risk of bias and strengthens the fairness of the process.

3. To Identify Overlooked Suggestions

Employees often bring forward practical suggestions during consultation, such as reducing overtime, job-sharing, or changes to working hours, which might help to reduce costs and avoid job losses.

4. To Provide Emotional Space

Redundancy is not just a business decision — it impacts lives. Consultation gives employees the chance to express concerns, ask questions, and process the news. This can ease tension, reduce shock, and help them prepare for the next steps.

5. To Demonstrate Leadership

A well-managed consultation process gives managers the chance to explain the rationale behind the decision and show empathy. Even where redundancies are unavoidable, employees will often accept the outcome more readily if they feel heard and respected.

6. To Reduce Legal Risks

Failure to consult properly can result in claims for unfair dismissal or protective awards, which can be costly and damaging to your reputation. Meaningful consultation shows that the employer acted lawfully and ethically.

What a Good Consultation Process Looks Like

• Timing: Consultation should begin at the earliest opportunity, before any final decisions are made.

• Communication: Clear, honest explanations are essential. Avoid jargon or overly legalistic language — employees need to understand what is happening and why.

• Involvement: Consultation should be a genuine two-way process. Employers must be open to feedback and willing to explore alternatives.

• Support: Provide employees with access to support, whether that’s internal HR guidance, counselling, or career transition services.

• Documentation: Keep records of all discussions and proposals — this demonstrates compliance and protects the business legally.

Beyond Compliance: The Human Side of Consultation

It’s easy to see redundancy consultation as just another legal requirement to tick off. But when done properly, it is far more than that. Consultation shows respect for employees, helps protect the employer’s reputation, and maintains morale among the wider workforce.

Handled with care, consultation can soften the blow of redundancy, reduce conflict, and even preserve relationships that might lead to future collaboration.

Final Thoughts

Redundancy will always be a difficult process, but consultation is not simply a hurdle to overcome — it is a vital step that can shape the outcome for both the employee and the business.

By consulting meaningfully, employers demonstrate fairness, compassion, and professionalism. While the outcome may not always change, employees will leave the organisation knowing they were listened to and treated with dignity.

Need Any Help?

Need support managing redundancy consultations, selection processes, or handling sensitive conversations with your team? Kirby HR can guide you through the process, ensuring you remain compliant and compassionate.