Making redundancies

If you are considering redundancies, take advice early. You may be able to avoid making redundancies at all. Options open to you might include:

  • cutting overtime
  • offering early retirement to employees who volunteer
  • terminating temporary contracts
  • retraining or redeploying workers – maybe to lesser jobs
  • deferring starting dates for new employees
  • offering sabbaticals or arranging secondments

If you are entitled to make redundancies, take advice on how to handle them effectively, to minimise the upset to your employees, to you and to your business.

If you are not entitled to make redundancies, you may still be able to negotiate a reduction in your workforce, offering payments as compensation. You can ask employees to sign a settlement agreement (formerly known as a compromise agreement) so they promise not to bring an employment tribunal claim. Again, advice is essential.

Click to read more about What redundancy means, When a Redundancy is unfair, The importance of redundancy procedures and more.

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