Surviving the chop: A Practitioner’s redundancy checklist for the modern employee

Redundancy is a word that strikes fear into the heart of any worker. But as legal practitioners, we know that knowledge is the ultimate antidote to panic. If you or your client find yourself facing the corporate guillotine, it is essential to remember that redundancy is about the role, not the person.

Here is the definitive checklist to ensure that employees can navigate the redundancy process with their rights intact, their dignity unbruised and their financial future secured.

Is this a redundancy test

Before packing up your favourite desk plant, establish whether a genuine redundancy situation exists. A redundancy usually occurs because the employer closes the business, closes the specific workplace, or has a diminished need for employees to do work of a particular kind.

The sneaky replacement

If your role is made redundant on Friday, and a job advert for your exact position appears on LinkedIn on Monday, questions need to be asked.

The burden of proof

The employer must prove the business rationale of their decision. If they are just using redundancy as a cloak to fire someone because they find them mildly annoying, that is potentially an unfair dismissal.

Consultation: not just a polite chat

A lawful redundancy process is not a monologue; it is a dialogue. Employers are legally required to consult with affected employees. For collective redundancies, strict statutory timelines apply. For individual redundancies, the consultation must still be meaningful

This is an opportunity to suggest alternatives. Can you work part time? Can you suggest cost-cutting measures? If the employer listens to your ideas with the blank stare usually reserved for reading the small print at the foot of the contract, setting out terms and conditions, document it. A failure to consult meaningfully can render the redundancy procedurally unfair.

The pooling and selection criteria

Unless the entire department or company is being wiped out, employers usually must select who stays and goes from a “pool” of similar employees. Employers must use objective, measurable criteria. Historically, “Last In, First Out” was the standard, although it now risks age discrimination claims. Modern matrices often score employees on performance and skills, attendance records (excluding maternity or disability-related absence) and disciplinary records. The tip here is to ask for your scoring matrix. If you scored poorly on “teamwork”, despite winning Employee of the Month three times this year, challenge the matrix!

The hunt for alternative employment

An employer cannot simply cast you out into the wilderness if there is a suitable alternative role available within the company or its wider group. Suitability depends on pay, status, location and hours.

Trial period

Employees usually have a statutory right to a four-week trial period in a new role. If it turns out that the new job is an administrative nightmare, you can still leave and claim your redundancy pay.

Show me the money: calculating your package

When the dust settles, it comes down to the numbers. Ensure that the final payout includes all statutory and contractual entitlements, including redundancy pay, notice pay, accrued holiday and any bonus payments due.

Settlement agreements: the fine print

If your employer offers an enhanced redundancy package, it will probably come via a Settlement Agreement. This is a legally binding contract where you waive your right to bring claims against the employer in exchange for financial compensation. You should obtain advice from an experienced Employment law practitioner, just in case a settlement agreement, which often has standard clauses, contains any unexpected and unwelcome surprises such as an attempt to have you waive personal injury claims which are normally excluded from the category of claims which can be waived.

The last word

Redundancy is undeniably stressful, but with a rigorous approach to checking the process, employees can turn a corporate setback into a well-compensated transition. Keep your files downloaded, your records meticulous and remember: the market always turns, and today’s redundant employee is tomorrow’s highly priced external consultant.