How We Helped a UK Company Navigate a Collective Redundancy

Let’s be honest: no one enjoys talking about redundancies. They’re difficult, emotional, and can take a real toll on everyone involved. Especially founders and leadership teams who’ve poured themselves into building a company.

But sometimes, they’re necessary. That was the case for one of our UK-based clients, who had to make the incredibly tough decision to wind down a significant part of their operations.

With over 20 roles at risk within a 90-day period, the situation didn’t just call for sensitive handling, it also triggered the legal requirements for a collective redundancy consultation under UK employment law. That’s where we came in.

The Legal Framework

In the UK, proposing 20 or more redundancies at one site within a 90-day window means a collective consultation process must begin. This includes formally electing and consulting with employee representatives before any individual discussions take place, and allowing at least 30 days for that consultation.

The aim? To ensure a fair and transparent process where employees have a real chance to be heard and to explore whether any alternatives to redundancy exist.

How We Supported the Business

At Founders Law, we were brought in to guide the client through every stage of the process - legally, practically, and with compassion. Here’s how we helped:

• Employee rep elections: We supported the business in setting up a fair and transparent process so that every impacted employee had a voice in the room.

• Consultation materials: We created thoughtful, practical guides for managers leading difficult conversations, helping them feel equipped and empathetic.

• Employee comms: Every letter, message, and update was reviewed or drafted to strike the right balance of being clear and legally sound, but also human and respectful.

• Settlement agreements: Where appropriate, we prepared individual agreements that enabled employees to leave with dignity and clarity. We also helped the company retain key staff to support continuity.

Navigating the Challenges

Even with the best intentions, collective redundancies come with real pressures. Here are a few challenges we helped steer through:

• Strict legal requirements: The process involves specific steps and timelines. Missing just one can carry significant risk.

• Genuine consultation: It’s not a tick-box exercise. Employers must actively listen to feedback and explore alternatives wherever possible.

• High emotional stakes: Understandably, trust and morale can dip. That’s why sensitive, consistent communication is vital.

Our Approach

We knew how emotionally charged this process would be, so we made it our goal to make things feel as calm, clear and respectful as possible. That meant:

• Breaking down legal requirements into plain English

• Supporting the business every step of the way. From rep elections to final meetings

• Crafting every written communication with care, empathy and clarity

The Outcome

Despite the difficulty of the situation, the process was run with transparency, diligence and compassion. There were no grievances, complaints, or legal claims.

Employees felt informed, had space to engage meaningfully, and the business was able to move forward while retaining core team members needed for the future.

What to Keep in Mind If You’re Facing Collective Redundancy

If you’re in a similar position, or might be, here are some key things to consider:

• Understand your obligations early – Once 20+ redundancies are on the table at one location, collective consultation becomes a legal requirement.

• Handle selection carefully – Where roles overlap or headcount is being reduced more broadly, selection needs to be objective and fair.

• Communicate clearly – Transparent updates can help reduce fear, confusion and risk.

• Respect the process – A fair, structured approach supports both legal compliance and employee wellbeing.

We’re Here to Help.

Redundancy is never just a legal issue. It’s a human one.

At Founders Law, we work with leadership teams to help them manage these incredibly tough transitions with confidence, care and legal clarity. If you’re planning a restructure or just want to understand your responsibilities, we’re here to guide you through so you can avoid any extra legal stress and make sure you receive supportive, practical advice. Contact us

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