If you are in the position where you have to make some of your employees redundant, you must follow a two part process.  If you fail to do this correctly, your employees could make an Employment Tribunal claim against you.

You must never use redundancy to dismiss employees for another reason, such as pregnancy, or a complaint against the company.  Your reasons for making employees redundant must be genuine.

For example, your business may have suffered a significant drop in trade, or your business may be closing.  Or changes in the way you run your business may mean that certain jobs are no longer required. 

Redundancy law can be complicated and you should consult an employment lawyer before beginning the process.  Employment lawyers can let you know what criteria for redundancy selection is acceptable.  This is important, as once you choose your selection criteria, you must stick to it.

Throughout the redundancy process, you must hold meetings with your employees, and discuss any possible alternatives to making them redundant.