In our recent Level Up webinar Navigating Redundancy Processes, available to watch on-demand here, management and HR leaders reported that they are facing structural change, cost pressure and technology shifts, including AI and outsourcing. Given these dynamics, when considering redundancy or restructure, a clear business case is the anchor that keeps your process fair and commercially sound.

Here, we outline the key steps to support you to build a robust business case and deliver it with success.

Define the genuine redundancy situation

The first step is to set out the commercial drivers and the organisational reality. Under English and Welsh law, a redundancy situation generally arises from:

  • business closure
  • workplace closure, or
  • a reduced need for employees to do work of a particular kind

It is important to be explicit about what work is ceasing or diminishing. For example, consolidating two roles into one, outsourcing functions, relocating sites, or adopting technology that changes job content, can all create legitimate redundancy scenarios.

Evidence the alternatives you’ve considered

Tribunals look closely at whether redundancy was avoidable. Your business case should demonstrate that you have explored alternative options such as redeployment, recruitment freezes, reducing contractor spend or voluntary changes to hours. Document why each alternative won’t meet the need to help show, as legally required, that redundancy is truly a last resort.

Take legal advice on early drafts of your business case

Early business case drafts often include sensitive assumptions and working hypotheses which you don’t necessarily want on the record so by taking legal advice at that stage you can benefit from the special legally privileged status to allow you to refine the rationale without risking disclosure later. Once finalised, your business case becomes the backbone for announcement scripts, FAQs and consultation documentation.

As Pam Loch, Solicitor and CEO at Loch discussed in our recent webinar, “Unless you’re taking legal advice on it, it is an open document. Having legal privilege means it’s off the record and not disclosable. Prepare a draft business case, get legal advice, and then you will be in a position to create an open document that forms the foundation for everything else that follows, without early deliberations leaving you exposed.”

Pool your staff and select effectively

Decide whether roles are unique or if employees should be placed in a pool based on the work they do, not just job titles. Build a balanced selection matrix that leans on objective evidence, such as performance records, while limiting any subjective criteria.

Consultation is a genuine opportunity to test your rationale, hear alternatives and correct errors in scoring or approach.

Consult individually and, if necessary, collectively

Your business case should map the route through consultation:

  • Individual consultation applies in most situations and must be meaningful: share the rationale, selection approach and scores, where relevant, invite feedback, and keep an open mind.
  • Collective consultation is triggered when you propose 20 or more redundancies at one establishment within a rolling 90-day period. A practical approach that some employers adopt is provisional selection by scoring the pool first and then consulting primarily with those provisionally at risk. Done fairly and transparently, this can reduce disruption while still allowing challenges to scores and a fair consultation process.

Create a People Plan

How you treat your team can affect morale, productivity and reputation during and after a redundancy process. Some of the suggestions that you can build into your people plan include:

  • For leavers: dignified conversations, clear documentation, timely references and practical outplacement support, such as CV advice and interview skills.
  • For those who remain employed in the business: transparent updates, realistic workload planning, manager talking points, and access to EAP and mental health first aid to address “survivor syndrome”.
  • For leaders: scripts, coaching and boundaries. Consistency matters and a strong, supported leadership team will be key to ensuring a smooth transition and continued performance.

As Laura Acosta, Senior Training and Wellbeing Consultant mentions, “For leaders, redundancy work is emotionally taxing. Seek support, set boundaries and maintain your support network.”

Loch connects leadership, compliance, people strategy and business growth, so that your legal process and your people plan move forward together. Our Redundancy Support Package brings together clear, end-to-end support.

What’s included in Loch’s Redundancy Support Package

  • Advice on the redundancy process, risks, costs – initial 1-hour meeting
  • Overview of applicable legislation (e.g. redundancy laws, collective consultation rules)
  • Business case drafted by Loch
  • Timeline and checklist from planning to implementation of process
  • Selection criteria matrix
  • Consultation scripts for both individual and collective consultation
  • Template letters including at-risk notifications, consultation invites, dismissal notices

For organisations needing additional resource, our bolt-on services, including audits, consultation-meeting support, grievance or appeal handling, wellbeing initiatives, communications planning, outplacement, enhanced manager training, and Employment Tribunal Insurance, strengthen your in-house capabilities and build lasting resilience.

If you’re uncertain about redundancy being the right step, we offer an initial consultation with one of our team of experts at no charge, to help you make a decision.

Watch the Webinar On-Demand

If you’d like more detail watch the full on-demand webinar here.