Streamline redundancy consultation meetings

In today’s challenging economic and legal climate, organisations of all sizes are under pressure. Rising costs and broader uncertainty have led many organisations to make tough decisions, often resulting in redundancies or restructures. Job cuts are now happening at the fastest rate since the early days of the pandemic.

Despite these pressures, it’s essential that redundancy consultation meetings are handled compliantly and compassionately. While it’s undoubtedly a difficult time for those directly affected, it also affects HR teams and line managers responsible for guiding the change. Having clear, consistent processes in place protects your people, your culture and your organisation’s reputation.

Managing consultations for redundancy effectively

When 20 or more employees are at risk of redundancy within a 90-day period at a single site, a formal consultation process is legally required. The minimum period is 30 days for 20–99 redundancies, and 45 days for 100 or more. These consultations must give employees a genuine opportunity to understand and respond to the proposals.

It’s also crucial to calculate carefully: employees, non-renewed fixed-term contracts, and withdrawn job offers all count towards the 20 threshold. Defining an ‘establishment’ can also be complex, as it isn’t always based purely on location.

Ensuring redundancy consultation meetings are managed consistently and compliantly is essential to avoid the risk of potential fines (which are uncapped at 90 days per employee – plus 25%).

Several factors contribute to a successful consultation process, including:

• Manager capability and ensuring HR have the resources they need;
• The right technology, processes and HR policies to support the process;
• Outplacement and career transition support to help affected employees move forward.

Understanding mutually agreed resignation schemes

Mutually agreed resignation schemes (MARS) offer a pragmatic alternative to formal redundancy processes, enabling both employer and employee to end the employment relationship on amicable terms. Often supported by settlement agreements, they can provide greater flexibility, reduce legal risk and support more constructive exits when roles are no longer required.

MARS is typically used when an organisation faces financial pressures and needs to reduce headcount. Employees leave voluntarily in exchange for a compensation payment, which can streamline the process for employers and provide a dignified, financially supported exit for individuals.

It’s important to note that while MARS can offer a more flexible and collaborative exit route, they do not remove the obligation to consult where required by law. In situations involving collective redundancies or where employees may be at risk, individual or collective consultation processes are still be necessary to ensure legal compliance and mitigate risk.

When MARS are used correctly, however, they can simplify transitions, protect morale and help ensure employees leave with dignity.

To be effective, the MARS process must be well-structured, clearly communicated and supported by expert advice to ensure fairness and compliance throughout.

Employment Rights Bill: Redundancy consultation meetings

The Employment Rights Bill is moving quickly through Parliament and could receive Royal Assent as early as this summer – much sooner than expected. Here are a few major changes to be aware of:

• Fire and rehire restrictions: Dismissing employees who refuse new contract terms and simply rehiring others on those terms will carry serious risks, including potential 25% penalty uplifts.
• Expansion of collective consultation: Under the Bill, a company-wide threshold would also apply to the 20 or more rule, meaning redundancies across multiple locations could trigger consultation obligations. Compensation for breaches will double, with protective awards rising from 90 to 180 days’ uncapped pay per affected employee.

Additionally, as the Managing Director of our legal division, Rena Christou, notes, the proposal of day one rights against unfair dismissal will impact redundancies. She explains, “in practice, redundancy dismissals would need to follow a full redundancy consultation procedure, even if the employee is in their probation period – and that they could also bring a ‘normal unfair dismissal’, which the current compensation cap is a year’s gross pay or £120,000, whichever is lowest.”

Discover more of our insights into the impact of the Employment Rights Bill on redundancies and much more in our on-demand digital training session here.

Managers’ role during redundancy consultation meetings

Some managers may be responsible for handling a consultation process for the first time, while others may not have done so in years. Ensuring they receive training on how to conduct the process compliantly and compassionately during a redundancy or restructuring programme is crucial.

This reduces the risk of non-compliance, tribunal claims and the associated costs, and ensures a positive experience for the employees involved in the consultation.

Our consultation meeting technology, meeting manager, simplifies the consultation process. With built-in scripts, templates and optional expert note-taking support, it streamlines scheduling, documentation and reporting, freeing HR and managers to focus on meaningful, compliant conversations. By easing the admin burden and ensuring consistency, meeting manager gives teams the confidence to lead people-first consultations with clarity and care.

Our digital learning services also equip managers to support employees more effectively during difficult conversations, ensuring a positive experience for everyone involved.

Outsourced HR support during redundancy consultation periods

During periods of organisational change, HR professionals play a pivotal role, balancing the legal complexities of redundancy consultations with the need to provide compassionate, people-focused support. They lead every stage of the process, guide managers, and uphold organisational values, all while managing tight timelines and critical documentation.

While HR teams are fully capable of managing these responsibilities, the volume of admin tasks, such as scheduling meetings, issuing letters, and documenting outcomes, can limit the time available for strategic and people-centric work.

Outsourced HR support offers a way to alleviate this pressure. Trusted external HR consultants can take on time-consuming admin tasks, allowing internal teams to focus their expertise where it matters most: ensuring consistency, maintaining compliance, and delivering a supportive and meaningful experience for employees. This also gives those leading consultation meetings the capacity to focus their full attention on delivering an empathetic, meaningful conversation.

Simplify the complexity of redundancy consultation meetings

Redundancy consultations are complex, balancing legal, administrative and emotional demands. With the right structure, support and technology, they become far more manageable.

Is your current approach as streamlined and supportive as it could be? Speak to us about how to lead consistent, compliant and compassionate consultations from day one.

You can also access our on-demand webinar, 2025 Redundancy landscape: People, process and engagement for practical guidance on managing redundancy with a people-first mindset while keeping pace with evolving legislation