Redundancy Advice for Employers in Glasgow: Legal Steps to Follow

Redundancy is one of the most challenging processes any employer can face. In Glasgow’s dynamic economy, spanning finance, manufacturing, hospitality, creative industries, logistics, and renewables, businesses periodically need to restructure, consolidate sites, or respond to economic pressures. While necessary for survival and growth, mishandling redundancies can lead to unfair dismissal claims, substantial financial penalties, tribunal hearings, and lasting reputational damage in Scotland’s tight-knit business community.

At Employment Law Services (ELS) LTD, based in Glasgow’s Hillington Park Estate, we specialise in providing fixed-fee employment law advice and HR support to employers across Great Britain. This comprehensive guide outlines the legal steps Glasgow employers must follow in 2026 to ensure a fair, compliant redundancy process, minimise risks, and maintain positive employee relations where possible.

Understanding Genuine Redundancy Under Employment Law

Under the Employment Rights Act 1996 (ERA 1996), redundancy is one of the five potentially fair reasons for dismissal. A genuine redundancy situation arises when:

The employer closes (or intends to close) the business entirely or at a specific workplace/location.
The need for employees to carry out work of a particular kind has ceased or diminished (or is expected to).
The need for employees to carry out such work at a particular place has ceased or diminished.

Important: Redundancy must be genuine and not a pretext for other issues like performance or misconduct. Tribunals will consider whether a genuine redundancy situation existed and whether the dismissal was fair; they do not ordinarily substitute their own commercial judgment for the employer’s. Document economic or operational evidence early, such as declining orders, automation, relocation, or post-merger efficiencies, to demonstrate necessity.

Glasgow employers operating across multiple sites should carefully assess whether changes affect one “establishment” or the wider organisation. Note upcoming 2027 changes under the Employment Rights Act 2025, which will introduce an additional organisation-wide threshold for collective consultation alongside the existing “one establishment” rule. The level of the new threshold is to be set by regulations.

For tailored guidance specific to Glasgow businesses, see our detailed resource on Redundancy Consultation Rules for Employers in Glasgow.

Step 1: Planning and Establishing the Business Case

Begin with thorough internal planning:

Identify the reasons and gather supporting data.
Determine the number of potential redundancies and affected roles.
Consider alternatives to redundancy first: voluntary redundancies, recruitment freezes, reduced hours, sabbaticals, retraining, or natural attrition.
Review contracts, policies, and collective agreements for any enhanced redundancy terms or consultation requirements.

Create a redundancy project plan including timelines, selection pools, criteria, and communication strategy. For multi-site Glasgow businesses, centralise oversight to track total numbers accurately, especially in anticipation of 2027 rules.

Tip: Engage ELS early for a fixed-fee review of your plans via our HR Policies and Procedures service. Proactive advice helps avoid costly errors. Additional planning time also allows assessment of broader impacts on team morale and operational continuity, which is vital in competitive local sectors like shipbuilding support or tech startups along the Clyde.

Step 2: Identifying the Selection Pool and Criteria

If not all roles in a category are affected, define a fair selection pool, typically employees doing similar work, at the same location, or with interchangeable skills. A pool of one can sometimes be fair, but employers should be able to explain why a wider pool was not appropriate and should consider whether same, similar or interchangeable roles belong in the pool.

Selection criteria must be objective, measurable, and non-discriminatory under the Equality Act 2010. Common fair criteria include:

Skills, qualifications, and experience.
Performance records.
Disciplinary history (recent and relevant).
Attendance (with legally protected or potentially discriminatory absences, such as pregnancy/maternity and disability-related absence, excluded or appropriately adjusted).
Length of service (with caution to avoid indirect age discrimination).

Avoid subjective factors like “attitude” or “potential,” which are harder to defend. Apply criteria consistently via a scored matrix and retain all documentation. Consult provisionally selected employees on their scores.

Protected groups: Pregnant employees and certain new parents have statutory priority for suitable alternative vacancies during defined protected periods, including qualifying maternity, adoption, shared parental, neonatal care and bereaved partner’s paternity leave protections. Paternity leave alone does not give this priority. Be vigilant against discrimination risks related to age, disability, sex, pregnancy and maternity, race, religion or belief, and other protected characteristics. In diverse Glasgow workplaces, equality impact assessments during pool definition can pre-empt challenges. Our Employment Law for Small Business Owners in Glasgow guide offers further insights.

Step 3: Consultation — The Heart of a Fair Process

A fair redundancy process normally requires genuine and meaningful individual consultation; collective consultation is legally mandatory when the statutory thresholds are met. Failure to consult meaningfully can make an otherwise genuine redundancy dismissal unfair.

Individual Consultation (All Redundancy Exercises)

Provide written information on reasons, selection process, and timelines.
Meet each affected employee privately at least once and continue consultation as needed for it to be meaningful. There is no general statutory right to be accompanied at an individual redundancy consultation meeting, although Acas recommends considering it and a policy or collective agreement may provide a right.
Discuss alternatives, including suitable alternative employment (SAE) across the organisation.
Consider employee suggestions seriously and document responses.

Even for small-scale redundancies in Glasgow SMEs, tribunals expect fairness. Meetings should explore personal circumstances empathetically while remaining focused on business needs. See our full support page on Redundancy Advice for Employers.

Collective Consultation (20+ Redundancies at One Establishment Within 90 Days)

Under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA):

Consult with appropriate representatives (recognised trade union or elected employee reps).
Start “in good time” — minimum 30 days before first dismissal (20–99 redundancies) or 45 days (100+).
Provide specific written information: reasons, numbers/categories affected, proposed methods, etc.
Notify the Redundancy Payments Service using Form HR1 at least 30 or 45 days before the first dismissal, depending on the number proposed, and before issuing any individual notice of dismissal. Failure to notify can amount to a criminal offence and may result in an unlimited fine.

Key 2026 Update: From 6 April 2026, the maximum protective award for failure to comply with collective consultation obligations has increased from 90 days to a maximum of 180 days’ full pay per affected employee. This significantly raises stakes for non-compliance.

Consultation must cover ways to avoid, reduce, or mitigate impacts. In Glasgow’s multi-site context, clarify the “establishment” definition carefully. Elected representatives need adequate facilities and time for their role. Our Annual Retainer Service provides ongoing compliance support for such scenarios.

Step 4: Suitable Alternative Employment (SAE) and Trial Periods

Employers should identify available vacancies and offer suitable alternative employment to employees selected for redundancy where appropriate. Special statutory priority rules apply to protected pregnant employees and certain new parents, including vacancies with associated employers in relevant cases. Offers should be made before the employment ends.

Whether an alternative is suitable depends on factors such as pay, status, location, hours, terms and the employee’s skills. Statutory priority applies only to employees within the specific redundancy-protected groups and periods.

If accepted, a statutory 4-week trial period normally applies; it can be extended by written agreement for retraining. Unreasonable refusal of SAE can disqualify statutory redundancy pay. For Glasgow employers with dispersed operations, mapping internal vacancies city-wide is essential. Our Glasgow Location Services team understands local market nuances.

Step 5: Dismissal, Notice, and Payments

Only issue dismissal notices after consultation ends.

Statutory notice: at least 1 week for employees with 1 month to 2 years’ service; 1 week for each full year of service from 2 to 12 years; and 12 weeks for 12 years or more. A longer contractual notice period must be honoured.
Statutory redundancy pay (for 2+ years’ service, as of 2026/27):
- 0.5 week’s pay per year (under 22).
- 1 week’s pay per year (22–40).
- 1.5 weeks’ pay per year (41+).
- Weekly pay capped at £751; max total £22,530; service capped at 20 years.

Many employers offer enhanced packages. Confirm the redundancy outcome in writing, including notice, leaving date, redundancy pay calculation and other sums due, and provide a P45 after employment ends. A reference is not generally legally required unless contractually agreed or required in a regulated context. Offering an appeal is good practice and can support procedural fairness.

Support employees with outplacement, CV help, or counselling to ease transition and protect morale. Post-redundancy, focus on rebuilding trust with retained staff through transparent town halls. If disputes arise, our Employment Tribunal Representation service is available on a fixed-fee basis.

Common Pitfalls for Glasgow Employers & How to Avoid Them

Local businesses often stumble on inadequate documentation, treating consultation as a formality, ignoring multi-site implications, failing to update policies amid legislative changes, or underestimating the impact of the new 180-day protective award. Rushed processes, biased selection criteria, or poor record-keeping frequently lead to successful employee claims.

To mitigate these risks, implement robust HR Policies and Procedures that are reviewed annually. Training managers on fair consultation techniques and maintaining detailed contemporaneous notes are essential best practices. Proactive engagement with specialists like ELS prevents minor oversights from escalating into expensive tribunal cases.

Why Choose Professional Support in Glasgow

Navigating redundancy alone exposes businesses to unnecessary stress and liability. ELS delivers pragmatic, plain-English advice tailored to your circumstances, whether through one-off support or our comprehensive annual retainer for unlimited access. We help draft policies, prepare consultation packs, manage communications, and represent you if needed — all with cost certainty and rapid response times.

Conclusion: Prepare Proactively

Redundancy in Glasgow requires balancing business needs with legal compliance and human impact. By following these structured legal steps – genuine rationale, fair selection, meaningful consultation, SAE consideration and proper payments – employers can minimise risks and demonstrate fairness.

With 2026’s increased protective awards and 2027’s additional organisation-wide consultation threshold on the horizon, now is the time to strengthen your processes. Don’t rely on outdated templates or ad hoc approaches.

Book a Free Consultation with the team at Employment Law Services (ELS) LTD today. Our Glasgow-based experts are ready to support your business through restructuring with confidence and compliance.