Redundancies are never straightforward. With changes introduced by the Employment Rights Act 2025 (ERA 2025) and increased enforcement on the horizon, getting the process right has never been more important.
What is genuine redundancy?
A redundancy arises when a role is no longer needed for genuine business reasons. Under the Employment Rights Act 1996 (as amended in 2025), this may include:
- Business closure or relocation
- A reduced need for certain work or roles
- Restructuring or changes to how work is caried out
Redundancy must relate to the role itself, not the individual. Dismissing an employee where their job still exists risks claims of unfair dismissal.
Clear communication
Clear and timely communication is central to a fair redundancy process. Employers should explain:
- Why redundancies are being considered
- Which roles may be affected and how many redundancies may be made
- How the consultation process will work and expected timescales
- What payments or support may be available
Early, open communication gives employees the opportunity to ask questions and suggest alternatives, helping to keep the process balanced and transparent.
Fair selection and planning
Where more than one role is at risk, collective consultation is required if 20 or more redundancies are proposed at a single establishment within a 90-day period. Employees should also be consulted individually.
Selection decisions must be objective, fair and applied consistently. Employers should also consider alternatives such as voluntary redundancy or redeployment and keep clear records of all decisions and consultations to ensure a transparent and legally compliant process.
What’s changed for 2026?
The ERA 2025 reforms have increased scrutiny on employers, making transparent and well-documented redundancy procedures more important than ever. Key changes include:
- The Fair Work Agency, a new UK body launching in April 2026, will strengthen enforcement of employment rights
- Failing to follow proper redundancy processes will carry greater legal and financial risks. From 6 April 2026, the maximum ‘protective award’ for failing to consult in a collective redundancy will double, rising from 90 days’ pay to 180 days’ pay.
- New limits on fire and rehire practices make proper redundancies planning essential
Practical support for employers
Handled properly, redundancies can be managed lawfully and fairly. With employment law continuing to evolve, early legal advice from our employment law team can help employers reduce risk and navigate a difficult process with confidence.
With decades of experience and over 1,700 five-star reviews on ReviewSolicitors, we’re trusted by clients across the UK to provide straightforward, reliable legal support.
All information in this article is accurate at the time of writing (09/02/2026).
Get In Touch
Sylviane Kokouendo, an Associate Partner in our Employment and HR team, has extensive experience advising employers on all aspects of employment law. She supports organisations with redundancy planning, consultation processes, restructuring, settlement agreements, and Tribunal proceedings, as well as day to day HR matters.
To discuss how we can support your organisation through these changes, please contact our employment team on 03300 299 419 or get in touch through our online enquiry form.
