Redundancy Support Sheffield

Redundancy is one of the most difficult things a leader has to manage. Whether you're making one role redundant or restructuring a whole team, the legal obligations are significant — and the human impact is real.

This article covers what Sheffield organisations need to know about managing redundancy fairly, legally and with as much care as possible for the people involved.

When redundancy applies

Redundancy occurs when a role is no longer needed — because the business is closing, a particular kind of work has reduced or ceased, or the work is moving to a different location. It's the role that's redundant, not the person. That distinction matters both legally and in how you communicate with your team.

Common triggers in Sheffield's charity and social enterprise sector include funding cuts or the end of a grant, loss of a contract, restructure following growth or merger, and cost reduction driven by financial pressures.

Individual versus collective redundancy

If you're making fewer than 20 people redundant within a 90-day period, you're in individual redundancy territory. You still have a legal duty to consult meaningfully with each affected employee — but the process is more straightforward.

If you're making 20 or more people redundant within a 90-day period, collective consultation rules apply. You must notify the Insolvency Service using form HR1, and the minimum consultation period is 30 days (45 days if 100 or more redundancies). Failure to comply with collective consultation obligations can result in a protective award of up to 90 days' gross pay per employee.

For most Sheffield charities and social enterprises, individual redundancy is the more common situation. But the rules still require genuine consultation, a fair selection process if more than one person is at risk, and proper consideration of alternatives to redundancy.

The key steps in a fair redundancy process

Identify the pool. Before you decide who is redundant, you need to define the pool of employees who are at risk. This needs to be a genuine and defensible assessment — not a way of selecting someone you've already decided to let go.

Consult meaningfully. Consultation must happen before the decision is made. That means having genuine conversations with at-risk employees, listening to any alternatives they propose, and considering those alternatives properly. A consultation that's already made up its mind isn't consultation.

Apply fair selection criteria. If more than one person is in the pool, you need objective selection criteria — skills, performance, attendance — applied consistently and documented clearly.

Consider alternatives. Before confirming redundancy, you must consider whether there are any suitable alternative roles available. If there are, you must offer them to the employee. Failure to do so can make an otherwise fair redundancy unfair.

Confirm in writing. The outcome of the process — whether that's confirmed redundancy or redeployment — must be confirmed in writing, with the right of appeal.

Redundancy pay

Employees with two or more years of continuous service are entitled to a statutory redundancy payment, calculated on age, length of service and weekly pay (subject to a statutory cap). Many charities also have enhanced redundancy terms in their contracts or handbooks — worth checking before you begin.

The cost of getting it wrong

An unfair redundancy can result in an unfair dismissal claim. If collective consultation obligations have been breached, a protective award can be made. The financial and reputational cost of a poorly handled redundancy process in a small organisation is significant — and almost always avoidable with proper support.

How King HR Advisory can help

We support Sheffield charities, social enterprises and growing organisations through redundancy processes — from initial planning and at-risk letters through to consultation meetings and appeals. We bring the employment law knowledge and the people judgement to help you do this properly and with care.

If you're facing a redundancy situation and you're not sure where to start, book a discovery call.