Redundancies are never easy… They affect not just the individuals at risk, but also the wider workforce and the culture of an organisation. For employers, getting the process right is essential — both to stay compliant with employment law and to protect the reputation and morale of the business. We know it is tough for our clients when redundancies are necessary, but we provide expert step by step guidance & support to help simplify the process as best as possible.
Redundancy remains one of the highest-risk areas for employers. Getting the reason, the pool, the selection, and the consultation right is essential to avoid unfair dismissal, discrimination and costly protective awards. This practical guide sets out the current legal framework, explains how pooling/single post works, and walks you through a fair and defensible process.
The Legal Framework - The Essentials
What is a redundancy?
A dismissal is by reason of redundancy where you close the business or workplace, or need fewer employees to do work of a particular kind (Employment Rights Act 1996 s.139). Even where the reason is genuine, you must still act fairly in procedure (see Polkey v AE Dayton on the consequences of procedural flaws).
One area that often causes confusion is how to identify the “pool” for redundancy selection and how this differs from situations where there is a single post redundancy. Let’s explore these concepts in straightforward terms.
What is “pooling”?
When employers make redundancies, they usually need to identify a group of employees who are doing similar or interchangeable work. This group is known as the pool for selection.
Why do pools exist?
Because often more than one person is doing the same type of work. If you only need fewer employees to do that work, you must fairly decide who stays and who goes.
Example:
Imagine you have five Customer Service Advisors, but due to reduced demand you only need three. The pool would normally be all five Advisors, because their jobs are substantially the same. You then select fairly from that pool using objective criteria (skills, performance, qualifications, attendance — adjusted fairly for protections under law like disability or pregnancy).
What to watch out for:
Pools that are drawn too narrowly can be unfair. For example, if two teams do similar duties but you only pool one team, you may face challenge later. It’s vital to be able to explain why you chose the pool you did.
Selection criteria – objective, evidence-based, equalities-proof
Good practice includes using objective criteria and verifying scores. Examples: skills, qualifications, performance records, disciplinary record, attendance (with adjustments). Avoid or adjust criteria that risk discrimination:
- Do not count pregnancy-related or disability-related absences; discount or adjust.
- Part-time status, flexible working, trade union activity, whistleblowing or other protected acts must not influence scoring.
- Use verifiable evidence (appraisals, KPIs) and require two scorers where possible.
Pooling – worked examples:
- Restructure removing two Team Leader posts across three teams: pool all Team Leaders due to interchangeable duties, even if in different sub-teams; consult on criteria such as leadership competencies, disciplinary record (verified), and objective performance data. (Williams principles).
- Niche role where only one person performs the function: a pool of one may be justifiable only if no one else does substantially similar work and there is no interchangeability. Document the analysis and why wider pooling would be artificial (Capita v Byard).
What is a “single post” redundancy?
Not all redundancies involve a pool. Sometimes, the role itself is unique.
- Definition:
A single post redundancy arises when only one person carries out a particular role and there is no overlap with others. - Example:
If you employ one Health & Safety Officer, and due to outsourcing you no longer need that role, the employee is at risk on their own. There’s no “pool” because there are no other employees doing comparable work. - Risks:
Tribunals are cautious with “pools of one”. You should be able to show why the post is truly unique, and why it wouldn’t have been fair to consider other roles as interchangeable. Sometimes, employers should also consider whether “bumping” applies — in other words, could the at-risk employee move into another role, making someone else redundant instead?
Single Post – worked example:
- Office Manager role being removed due to outsourcing: If you only employ one Office Manager and decide to outsource all administrative functions, that individual is in a single post redundancy situation. There is no pool because no other employees carry out substantially similar duties.
In this case:
- You must still consult properly, explaining the business reason and exploring alternatives.
- Check for any suitable alternative roles across the organisation, including lower or sideways moves.
- Consider ‘bumping’, i.e., whether the Office Manager could be redeployed into another role, making another employee redundant instead.
- Keep clear documentation showing why the role was unique and why pooling did not apply.
Fair process in both cases
Whether pooling or dealing with a single post, the core legal duties remain the same:
- Consultation: You must meet with affected employees, explain the reasons, listen to alternatives, and consider redeployment opportunities before any decisions are made on there employment.
- Alternatives: Always look at suitable alternative employment elsewhere in the organisation. There can be added complexity in some cases, for examples, employees who are pregnant or recently returned from family leave must give them priority access to such roles.
- Notice and redundancy pay: Employees with 2+ years’ service are entitled to statutory redundancy pay, calculated on service, age and capped weekly pay.
For our clients, we require a clear business case for redundancies in most situations. This serves two key purposes:
- It provides a strong defence should the redundancy be challenged in the future.
- It allows us to assess risks at an early stage, ensuring the employer’s rationale is robust, consistent, and supported by evidence.
A well-prepared business case, combined with transparent consultation and careful handling of alternatives, is the foundation of a fair and legally defensible redundancy process.
Closing Thoughts
Pooling and single post redundancies look different in practice, but both require a fair and transparent approach. Employers who take time to justify their decisions, consult openly, and consider alternatives are far less likely to face claims of unfair dismissal.
At Wirehouse Employer Services, we support businesses through every stage of the redundancy process — from defining the pool, to consultation, to handling the difficult conversations. If you’re unsure whether your redundancy plans involve a pool or a single post, seek advice early: it can make all the difference in staying compliant and treating staff fairly.
HR and Employment Law can be extremely tricky to navigate through and when a small or medium business may not have an in house solicitor it can prove very difficult to abide by and keep up to date with the latest employment law legislation. Employment Law issues can soon snowball if they are not dealt with effectively and a lack of knowledge of employment law and the various pitfalls it can throw up could leave your business or organisation exposed if you don’t follow the correct processes and procedures. Add to that some ever changing legislation and a lack of the right skills, knowledge, and understanding of HR and Employment Law within your business, and it could easily land you in legal trouble and worse, hit your business hard financially.
Contact Us
If you need more information about the upcoming changes or how we can help and protect your organisation please visit our website: https://wirehouse-es.com/, call us on 03333 215 005 or directly email us via: info@wirehouse-es.com.
