Nearly one in three British businesses are likely to make redundancies by January 2027, according to ACAS, which reports that 33% of companies may have already done so. The news comes as Christmas approaches and mortgage rates hit 6% for the first time in three years.
This week alone, Greggs announced it will cut around 740 jobs, while Royal Mail plans to cut 2,500 employees.
The redundancy process companies must follow
If your role is at risk, your employer must consult with you before making a final decision. This is called a consultation period. If fewer than 20 employees are being made redundant, there is no legal length of time for the consultation, but one to two weeks at least is recommended.
If 20 to 99 employees will lose their jobs, consultation must start at least 30 days before dismissals take effect. For 100 or more employees, the minimum is 45 days. Nicola Smyrl, employment lawyer and partner at Taylor Walton, told Metro: “If there are 20 or more employees affected, there will need to be collective consultation with trade union representatives or with elected representatives. Employers then have to provide certain information to those reps and then meet individually with affected employees as well.”
The consultation must be “meaningful,” according to the lawyer. “It should be undertaken before the decision has been made and the employer should be engaging with questions and counter proposals to mitigate the effects of the proposals.” She added that the company should be clear about the proposal, why it creates a redundancy situation, and how selection will work. “The consequence of not having individual meetings with workers, for the employer, is that any subsequent dismissal and redundancy grounds are likely to be unfair.”
What should you do if you’re at risk?
Nicola advises reading all information provided by the employer carefully to prepare questions for the consultation meeting. Check your notice period, final salary, and any redundancy pay you’re entitled to receive. “You’re entitled to your notice period, either to work or be paid in lieu, and you’re entitled to a statutory redundancy payment if you’ve got two years service or more,” she explains. “This takes into account your salary, age and length of service.”
The lawyer recommends keeping your own notes during meetings, but you shouldn’t record them without permission. “During meetings, you might want to ask why your role is affected, what will happen to your duties and if there are any alternative roles,” Nicola explains. “Some employees might be annoyed they’ve been selected and reluctant to engage in the process but you need to do what you can to understand why you’re affected, even if that’s because you believe it’s unfair.”
Time off to job hunt and unfair dismissal
“You’re entitled to be open about job hunting,” the lawyer explains. “But, you might want to be slightly careful in case there are alternative roles you could apply for at the company.” If you have worked continuously for at least two years, you are entitled to reasonable time off to look for another job, interview, or arrange training. “You can take this in normal working hours and your employer can’t ask you to make the time up,” Nicola explains. “Statutory pay for this is 40% of one week’s pay for this time.” So, if you took five days off to job hunt, you would get two days’ worth of pay. Your employer can ask for proof that the time is genuinely used for job hunting.
Currently, you can bring an unfair dismissal claim if you’ve worked there for two years or more. But, as of January 1, 2027, Nicola says this will reduce to six months of employment. “For dismissals up to September 30, you need to bring your claim within three months of your dismissal, but from October 1, you have up to six months,” the lawyer says. There will be an internal appeal process at the end of your employment, but if this fails you can go to ACAS, which offers employment guidance and can act on your behalf to try to secure a settlement. If not, your case can go to an employment tribunal.
Reasons you could win an unfair dismissal case include: there isn’t a legitimate redundancy situation affecting your role; lack of meaningful consultation; unfair selection; or failure to consider alternatives to redundancy. Nicola advises seeking legal advice if you feel your dismissal is unfair, or contacting ACAS as a starting point.
