{{org_field_logo}}
{{org_field_name}}
Registration Number: {{org_field_registration_no}}
Managing Redundancy and Employee Support Policy
1. Purpose
This policy outlines the approach of {{org_field_name}} to managing redundancy in a fair, transparent, and compliant manner, ensuring that affected employees receive appropriate support and guidance while maintaining the highest standards of care for the people we support.
The policy aims to:
- Minimise the impact of redundancies through workforce planning and alternative employment opportunities.
- Ensure all redundancy processes comply with employment law and CQC good governance regulations.
- Provide clear communication and emotional and practical support to employees affected by redundancy.
- Maintain continuity of care and safeguard the well-being of the people we support.
- Protect organisational integrity and staff morale through a fair, respectful, and legally sound process.
2. Scope
This policy applies to all employees of {{org_field_name}} who may be affected by a potential redundancy situation, including full-time, part-time, fixed-term and other employees where they have employee status for the purposes of employment law.
This policy also applies to the Registered Manager, Human Resources personnel, senior managers and any other person who is authorised to plan, manage, advise on or make decisions concerning a redundancy exercise.
Agency workers, self-employed contractors and consultants are not covered by this policy as employees unless their individual legal status means that they are employees of {{org_field_name}}. Where collective redundancy consultation obligations apply, {{org_field_name}} will nevertheless provide the legally required information concerning agency workers to the appropriate employee representatives.
Nothing in this policy removes or reduces any statutory employment right or any more favourable contractual right applying to an employee.
3. Related Policies
- CH04 – Good Governance Policy
- CH14 – Receiving and Acting on Complaints Policy
- CH16 – Health and Safety at Work Policy
- CH23 – Lone Working and Staff Safety Policy
- CH26 – Recruitment, Selection, and Retention Policy
- CH27 – Staff Supervision, Training, and Development Policy
- CH28 – Staff Conduct and Code of Ethics Policy
- CH31 – Disciplinary and Grievance Policy
- CH35 – Duty of Candour Policy
4. Policy Statement
At {{org_field_name}}, we are committed to treating employees with respect and dignity throughout any redundancy process. We recognise that redundancies can be distressing, and we strive to support affected employees while ensuring that our care home continues to provide safe, high-quality care.
The redundancy process will always be fair, non-discriminatory, and legally compliant, following ACAS guidelines and relevant employment legislation.
5. Managing Redundancy Effectively
{{org_field_name}} will take reasonable steps to avoid or reduce compulsory redundancies before deciding that dismissals are necessary. Depending upon the circumstances, consideration may include:
- restricting or suspending external recruitment;
- reviewing vacancies and opportunities for redeployment;
- considering voluntary redundancy where appropriate;
- reviewing the use of agency workers, temporary workers, consultants and overtime;
- considering natural staff turnover;
- considering retraining or redeployment;
- considering voluntary and mutually agreed changes to hours or working arrangements; and
- considering other reasonable proposals raised during consultation.
Any measures involving changes to an employee’s contractual terms and conditions will be dealt with in accordance with applicable employment law and will not be imposed through this redundancy policy without the appropriate legal process.
No final decision to dismiss an employee for redundancy will be made before meaningful consultation has taken place.
5.1. Definition and Reasons for Redundancy
A redundancy situation will only be treated as redundancy where the circumstances fall within the statutory definition of redundancy under the Employment Rights Act 1996.
Broadly, a redundancy situation may arise where:
- {{org_field_name}} has ceased, or intends to cease, carrying on the business or part of the business for which an employee is employed;
- {{org_field_name}} has ceased, or intends to cease, carrying on that business at the place where an employee is employed; or
- the requirement for employees to carry out work of a particular kind, or work of a particular kind at the place where an employee is employed, has ceased or diminished, or is expected to cease or diminish.
Examples may include closure of a service or workplace, restructuring, reduced demand for particular work, reduced occupancy, changes in service delivery or technology that genuinely reduce the requirement for employees to carry out particular work.
Performance, conduct, capability or disciplinary concerns will not be presented or managed as redundancy where redundancy is not the genuine reason for the proposed dismissal.
The business rationale, proposed organisational change, number and types of roles affected, alternatives considered and reasons for any proposed redundancies will be recorded.
5.2. Consultation Process
{{org_field_name}} will carry out genuine and meaningful consultation before deciding to dismiss an employee for redundancy.
Individual consultation will be undertaken with employees who are at risk of redundancy. Consultation will begin while the proposals remain capable of change and will include, as appropriate:
- the reasons for the proposed changes;
- why the employee’s role is potentially at risk;
- the proposed selection pool and selection criteria, where applicable;
- ways of avoiding the redundancy;
- ways of reducing the number of redundancies;
- ways of mitigating the consequences of redundancy;
- suitable alternative employment and redeployment opportunities;
- representations, questions and alternative proposals made by the employee;
- the proposed timescale; and
- the employee’s potential notice and redundancy pay entitlements.
Representations and alternatives put forward during consultation will be genuinely considered before a final decision is made.
Collective consultation
Where {{org_field_name}} is proposing to dismiss as redundant 20 or more employees at one establishment within a period of 90 days or less, the statutory collective consultation requirements under the Trade Union and Labour Relations (Consolidation) Act 1992 will be followed.
Collective consultation will take place with:
- representatives of any recognised independent trade union representing the affected employees; or
- where there is no recognised trade union for the affected employees, employee representatives elected in accordance with the statutory requirements.
Consultation will begin in good time and, as a minimum:
- where 20 to 99 redundancies are proposed at one establishment within a 90-day period, collective consultation will begin at least 30 days before the first proposed dismissal takes effect; and
- where 100 or more redundancies are proposed at one establishment within a 90-day period, collective consultation will begin at least 45 days before the first proposed dismissal takes effect.
No employee will be issued with notice of redundancy before the required consultation process has been completed.
As part of collective consultation, the appropriate representatives will be provided in writing with the information required by law, including:
- the reasons for the proposals;
- the numbers and descriptions of employees whom it is proposed to dismiss as redundant;
- the total number of employees of those descriptions employed at the establishment;
- the proposed method of selecting employees who may be dismissed;
- the proposed method of carrying out the dismissals, including the proposed period over which they are to take effect;
- the proposed method of calculating redundancy payments other than those required solely by statute; and
- the legally required information concerning agency workers, including the number of agency workers, the parts of the organisation in which they are working and the type of work they are carrying out.
Where the collective consultation provisions apply, {{org_field_name}} will notify the Secretary of State through the Redundancy Payments Service using form HR1 within the statutory timescale and before individual notices of dismissal are issued. A copy of the required notification will also be supplied to the appropriate employee representatives as required by law.
Failure to comply with the statutory collective consultation requirements may result in an Employment Tribunal making a protective award. For dismissals taking effect on or after 6 April 2026, the maximum protective award is up to 180 days’ pay for each affected employee.
5.3. Selection Pools and Selection Criteria
Where it is necessary to select some employees for redundancy from a group performing the same or similar work, {{org_field_name}} will identify a reasonable selection pool and will apply objective, measurable, transparent and non-discriminatory selection criteria.
Selection criteria may include, where objectively relevant and capable of fair assessment:
- skills and competencies required for the continuing service;
- relevant qualifications;
- relevant experience;
- documented performance;
- current live disciplinary warnings, where appropriate; and
- attendance, subject to the exclusions and safeguards set out below.
Selection criteria and their weighting will be determined according to the legitimate future requirements of the service and will be supported by appropriate evidence.
Selection criteria will not discriminate unlawfully because of a protected characteristic under the Equality Act 2010 or because an employee has exercised a statutory employment right.
When attendance is used, {{org_field_name}} will ensure that absence is reviewed before scoring and that legally protected or potentially discriminatory absence is excluded or appropriately adjusted. This includes, where applicable:
- pregnancy-related absence;
- maternity leave;
- adoption leave;
- paternity leave;
- shared parental leave;
- parental leave;
- parental bereavement leave;
- neonatal care leave;
- carer’s leave;
- time off for dependants;
- disability-related absence where adjustment is required to avoid unlawful discrimination; and
- any other absence that it would be unlawful or discriminatory to count against the employee.
An employee will not be selected for redundancy because they have:
- made a protected disclosure or raised a whistleblowing concern;
- raised health and safety concerns or exercised statutory health and safety rights;
- acted as, sought election as, or carried out duties as an employee representative;
- been a member of or participated in lawful activities of a trade union;
- exercised statutory rights relating to working time, minimum wage, family leave or flexible working; or
- exercised any other right for which redundancy selection would be automatically unfair or unlawful.
Length of service will not be used automatically. Where it is used, {{org_field_name}} will first consider whether its use is objectively justifiable and whether it creates a risk of unlawful age discrimination.
Employees will be informed of the selection criteria and, where applicable, their individual assessment or score and will be given a reasonable opportunity during consultation to challenge factual inaccuracies or the application of the criteria.
5.4. Notice Period and Redundancy Pay
Where an employee is dismissed by reason of redundancy, they will receive the greater of their contractual notice entitlement or their statutory minimum notice entitlement.
The statutory minimum notice entitlement is:
- at least one week’s notice where the employee has been continuously employed for one month or more but for less than two years;
- one week’s notice for each complete year of continuous employment where the employee has been continuously employed for two years or more but for less than 12 years; and
- 12 weeks’ notice where the employee has been continuously employed for 12 years or more.
Payment in lieu of notice will only be made where permitted by the contract of employment or otherwise lawfully agreed or provided.
Employees with at least two years’ continuous employment at the relevant date will normally qualify for statutory redundancy pay, subject to the provisions of the Employment Rights Act 1996.
Statutory redundancy pay will be calculated according to the employee’s age, complete years of qualifying continuous service and the applicable statutory definition and limit of a week’s pay. A maximum of 20 years’ qualifying service may be taken into account.
The statutory calculation provides:
- half a week’s pay for each full year of qualifying service during which the employee was below age 22;
- one week’s pay for each full year of qualifying service during which the employee was aged 22 but below age 41; and
- one and a half weeks’ pay for each full year of qualifying service during which the employee was aged 41 or over.
For redundancies to which the statutory limit effective from 6 April 2026 applies, the maximum statutory amount of a week’s pay is £751. The statutory limit is normally reviewed annually and the limit applying on the relevant date will always be used.
{{org_field_name}} will provide each employee entitled to statutory redundancy pay with a written statement explaining how the redundancy payment has been calculated.
Where an employment contract or other binding agreement provides a more favourable redundancy payment, the contractual or agreed entitlement will be honoured.
5.5. Suitable Alternative Employment and Statutory Redundancy Protection
Throughout the redundancy process and until employment terminates, {{org_field_name}} will take reasonable steps to identify suitable alternative employment within the organisation for employees at risk of redundancy.
Where suitable alternative employment is available, the role will be considered having regard to matters including:
- the nature and status of the role;
- pay and benefits;
- contractual terms;
- working hours;
- location;
- the employee’s skills, qualifications and experience; and
- the employee’s individual circumstances.
Any suitable alternative role will be offered in writing before the employee’s existing employment terminates and, where the statutory suitable alternative employment provisions apply, the new employment will begin within the statutory period.
Employees accepting alternative employment on different terms will be given the statutory four-week trial period where the statutory conditions for a trial period are met. Any extension to a statutory trial period will only be made where permitted by law and appropriately agreed in writing.
An employee who unreasonably refuses an offer of suitable alternative employment may lose their entitlement to statutory redundancy pay. No decision that a refusal was unreasonable will be made without consideration of both the suitability of the role and the employee’s individual reasons for refusing it.
Priority protection for pregnancy and family leave
{{org_field_name}} will comply with the statutory redundancy protection applying to employees who are within a legally protected redundancy period.
Where an employee has statutory priority protection and a suitable alternative vacancy exists, {{org_field_name}} will offer that suitable vacancy to the protected employee in priority to other employees who do not have the same statutory priority. The protected employee will not be required to compete for the vacancy against employees without equivalent statutory priority.
Subject to the detailed statutory qualifying conditions and protected periods applying at the relevant time, this protection may apply to employees who are:
- pregnant;
- on maternity leave or within the applicable protected period following maternity leave;
- on adoption leave or within the applicable protected period;
- taking qualifying shared parental leave or within the applicable protected period;
- taking qualifying neonatal care leave or within the applicable protected period; or
- taking bereaved partner’s paternity leave where the statutory redundancy protection applies.
Where more than one employee with statutory priority protection is eligible for the same suitable alternative vacancy, {{org_field_name}} will use a fair and objective method to decide between those protected employees.
Failure to comply with statutory priority protection may result in a dismissal being automatically unfair and, where applicable, may also constitute unlawful discrimination.
5.6. Time Off to Look for Work or Arrange Training
An employee who is under notice of dismissal by reason of redundancy and who will have at least two years’ continuous employment by the date their notice expires is entitled to a reasonable amount of time off during working hours to:
- look for new employment; or
- make arrangements for training for future employment.
Requests will be considered reasonably, taking account of both the employee’s statutory rights and the need to maintain safe care.
Payment for statutory time off will be made in accordance with the Employment Rights Act 1996. The statutory entitlement to payment is subject to the applicable statutory limit, although {{org_field_name}} may provide a more favourable contractual arrangement where one applies.
6. Employee Support During Redundancy
To minimise distress and support employees, we will provide:
6.1. Emotional Well-being Support
- Confidential counselling services via Employee Assistance Programme (EAP).
- Well-being check-ins with HR or senior management.
- Support groups for affected employees.
6.2. Practical Assistance
- CV writing and interview preparation workshops.
- Career coaching and training support.
- Signposting to external job search resources.
6.3. Financial Guidance
- Information on redundancy pay entitlements.
- Referral to financial advisory services.
- Guidance on benefits eligibility (e.g., Universal Credit, Jobseeker’s Allowance).
7. Ensuring Continuity and Safety of Care
Any proposed redundancy or workforce restructuring that may affect the delivery of regulated activities will be planned and implemented so that {{org_field_name}} continues to comply with the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014 throughout the change process.
Before implementing a reduction or material change in staffing, the Registered Manager and appropriate senior management will assess and document the potential effect on the safety, quality and continuity of care.
The assessment will include, as applicable:
- the number of people using the service and their assessed needs;
- dependency, acuity and complexity of need;
- safeguarding risks;
- required staffing numbers on each shift and at different times of day;
- the skills, competencies, qualifications and experience required within the staff team;
- nursing or other professional staffing requirements where applicable;
- staff supervision and leadership arrangements;
- medicines management;
- moving and handling requirements;
- infection prevention and control;
- emergency and evacuation arrangements;
- continuity of care;
- staff absence and contingency arrangements; and
- any increased reliance on agency, bank, temporary or overtime staffing.
In accordance with Regulation 18 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014, {{org_field_name}} will ensure that sufficient numbers of suitably qualified, competent, skilled and experienced persons are deployed to meet the requirements of the Regulations and the needs of the people using the service.
A redundancy decision will not be implemented in a manner that would knowingly leave the service without sufficient staffing or the necessary skill mix to provide safe care.
In accordance with Regulation 17, {{org_field_name}} will maintain effective systems for assessing, monitoring and mitigating risks arising from workforce changes. Staffing levels, incidents, safeguarding concerns, medicines issues, missed or delayed care, complaints, accidents, staff feedback and other relevant quality and safety indicators will be monitored during and following the implementation of any significant workforce reduction.
Where monitoring identifies that staffing arrangements are creating or increasing a risk to the health, safety or welfare of people using the service, immediate action will be taken to mitigate that risk, including increasing or changing staffing arrangements where necessary.
Appropriate handovers and transfer of responsibilities will be completed before affected employees leave employment. Relevant information will be communicated sensitively to people using the service, representatives and families where this is necessary for continuity of care, while maintaining employee confidentiality and data protection requirements.
Records of workforce assessments, identified risks, decisions, mitigating actions and subsequent monitoring will be retained as part of the service’s governance arrangements.
8. Appeals and Grievances
An employee who believes that a redundancy decision or the application of the redundancy procedure was unfair may submit an appeal in accordance with the procedure notified to them by {{org_field_name}}.
An appeal may include concerns about:
- whether a genuine redundancy situation existed;
- the selection pool;
- the selection criteria;
- the employee’s selection score or supporting evidence;
- the consultation process;
- a failure to consider relevant representations;
- suitable alternative employment;
- statutory redundancy protection;
- discrimination; or
- another material procedural or factual error.
Where practicable, an appeal will be considered by a manager who was not responsible for the original decision and who has appropriate authority to review it.
The employee will be informed in writing of the outcome of the appeal and the reasons for the decision.
An employee may separately raise a grievance under CH31 – Disciplinary and Grievance Policy where appropriate.
The Care Quality Commission is not an appeal body for employment redundancy decisions. Concerns relating to unsafe care, unsafe staffing, safeguarding, neglect or other matters affecting people using the service should instead be raised through the organisation’s appropriate safeguarding, whistleblowing or speaking-up arrangements and may be reported to an appropriate external body, including CQC, where legally appropriate.
9. Risk Management and Compliance
{{org_field_name}} will manage redundancy exercises in accordance with applicable employment law and will ensure that workforce changes do not result in non-compliance with its obligations as a registered provider.
The Registered Manager and senior management will ensure that:
- redundancy proposals and the reasons for them are documented;
- the correct individual and, where applicable, collective consultation procedures are followed;
- statutory notification requirements are met where collective redundancies are proposed;
- equality, discrimination and statutory redundancy protection requirements are considered and documented;
- selection pools, selection criteria, scoring evidence and consultation records are retained;
- suitable alternative employment is actively considered and statutory priority rights are applied;
- notice and redundancy payments are calculated correctly;
- workforce changes are subject to a documented assessment of their effect on the quality, safety and continuity of care;
- sufficient numbers of suitably qualified, competent, skilled and experienced staff continue to be deployed in accordance with Regulation 18 of the Health and Social Care Act 2008 (Regulated Activities) Regulations 2014;
- risks arising from workforce changes are assessed, monitored and mitigated in accordance with Regulation 17;
- management and employment records necessary to demonstrate compliance are accurate, complete, secure and available for appropriate audit or regulatory purposes; and
- action is taken promptly where staffing reductions adversely affect safety, quality, continuity of care or compliance with regulatory requirements.
Redundancy documentation will be retained in accordance with applicable employment, data protection and records-retention requirements.
CQC oversight of a redundancy exercise will relate to matters within CQC’s regulatory remit, including staffing, safety, quality and governance. CQC does not determine whether an individual employee’s redundancy dismissal was fair under employment law.
10. Policy Review
This policy will be reviewed annually or sooner if legislative or organisational changes occur. {{org_field_name}} is committed to fair, ethical, and compliant redundancy practices that uphold employee well-being and service continuity.
Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
Copyright © {{current_year}} – {{org_field_name}}. All rights reserved.