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Redundancy

The legislation dealing with redundancy can be complex. On this page you can find ICAEW insights alongside eBooks, articles and online resources providing practical guidance and best practice.

ICAEW is providing a collection of resources with help, advice and resources to assist those affected by redundancy. Find out more at the redundancy support for employers and individuals hub.

ICAEW insights and guidance

Template redundancy letters and agreements
Model documents covering individual and collective consultations for redundancy can be provided by email from the ICAEW Library & Information Service on request.

Taxing termination payments
Updated 20 May 2020: Sarah Bradford, director at Writetax Ltd, explains the new rules regarding taxing termination payments applying from April 2018. She covers termination awards, post-employment notice pay and statutory redundancy pay among other things.

Chartered accountants facing redundancy
Professionals, including chartered accountants, are not immune from redundancy. If you are in this position it is important to get specialist advice and support. The Support Members Scheme has produced this information sheet to help you find the advice and support you might need.

An ICAEW overview guide to managing a redundancy process
Economic conditions, mergers or a change in business operations can lead to your company needing to make staff redundant. This guide covers the general legal and human resource issues you would need to consider.

The implications of reorganisations, restructures and redundancies
During any change initiative, there are formalities to observe. Jemima Coleman and Christine Young of Herbert Smith Freehills offer guidance and practical advice on the legal issues for managers to keep in mind when contemplating change.

Legal Alert

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

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eBooks

The Library provides full text access to a selection of key business and reference eBooks from leading publishers. eBooks are available to logged-in ICAEW members, ACA students and other entitled users. If you are unable to access an eBook, please see our Help and support advice or contact library@icaew.com.

Payments made on the termination of employment

Mark McLaughlin, Donald Pearce-Crump Bloomsbury Professional September 2020

A chapter on the taxation of payments made on the termination of employment, written for professional advisers.

Employment

Bloomsbury Professional May 2020

Twenty chapters on employment law in this reference guide for accountants faced with an unfamiliar legal problem or query.

Tax on the termination of employment

Donald Pearce-Crump Bloomsbury Professional 2019

A practical and fully comprehensive guide to the tax implications that need to be addressed when an employment is terminated.

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Terms of use: You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Online articles

The Library provides access to leading business, finance and management journals. These journals are available to logged-in ICAEW members, ACA students and other entitled users subject to suppliers' terms of use.

The redundancy process

The article provides information on the redundancy process in the employment. Topics discussed include the importance of the handling of redundancy dismissals in line with the law, the criteria for selection of redundancy based on the length of service, disciplinary record and performance of employees and finding an alternative to find an alternative for redundancy by communication of employer and employee.

"We'd like to make you an offer"

The article discusses issues related to exit agreements for employees as part of human resources (HR) work. Topics include the negotiation of settlement agreements with employees who have become redundant, the need for documentation of offers to avoid unfair dismissal claims, and the role of confidentiality clauses in agreements.

Redundancy near pensionable age could be age discrimination

The article reports that the Employment Appeal Tribunal (EAT) of Great Britain has returned the case Sturmey v Weymouth and Portland Borough Council to a tribunal for a re-hearing. It mentions that the tribunal will consider whether redundancy dismissal, where the timing meant an employer avoided significant pension costs, could amount to age discrimination.

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Terms of use: You are permitted to access articles subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

Useful external resources

Making staff redundant
Guidance from GOV.UK covering lay-offs and short-time working, non-compulsory and compulsory redundancies, staff consultations and redundancy pay.

Calculate your employee's statutory redundancy pay
GOV.UK calculator for employers to work out payments based on age, weekly pay and number of years service.

Manage staff redundancies (Acas)
Clear and detailed guide aimed at employers covering how to avoid compulsory redundancies, the employee consultation process, how to select employees for redundancy in a fair way, the procedure for giving employees redundancy notice, how to work out redundancy pay, and supporting your staff. The guide includes links to forms, templates and further guidance.

Redundancy payments form: HR 1
Form that employers are required to use to notify the government of potential redundancies when dismissing 20 or more staff in a single establishment .

Redundancy letter templates (Acas)
Templates for letters informing an employee that they're at risk of redundancy, inviting an employee to a consultation meeting, and confirming that an employee has been selected for redundancy. Available in Microsoft Word and OpenDocument Text formats.

Handling large-scale redundancies (Acas)
Advice booklet on collective redundancy, where 20 or more employees may lose their jobs within a 90-day period at a single establishment. The guide includes case studies, a detailed checklist for handling large-scale redundancies, and advice on supporting your staff and business during the process.

Redundancy: an introduction (CIPD)
Factsheet from the Chartered Institute of Personnel and Development (CIPD) focusing on the legal position, managing redundancy, the costs of redundancy and redundancy payments, and staff counselling.

Coronavirus (COVID-19): redundancy guide (CIPD)
Factsheet from the CIPD explaining how the Coronavirus Job Retention Scheme impacts on redundancy procedures. Published in May 2020.

Further reading

Articles and books in the Library collection

The ICAEW Library has a world-class collection of books and journals covering a wide range of topics including accountancy, auditing, law, taxation, finance and management.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email, post or fax.

Can't find what you are looking for?

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