As we progress through 2025, many UK businesses are still feeling the effects of a challenging economic climate. According to the Office for National Statistics, the UK redundancy rate rose to 4.2 per 1,000 employees between October and December 2024—highlighting the continued need for proactive measures around preventing redundancy in 2025.
At HR Solutions, we recently hosted a webinar exploring this very topic. We discussed practical ways employers can prevent redundancies, legal obligations, and what trends we’re seeing across the businesses we support. Here’s a summary of the key insights and takeaways.
Proactive Approaches to Preventing Redundancy in 2025
When it comes to protecting jobs, prevention starts with forward planning. Businesses are exploring a range of strategies to help reduce risk and avoid compulsory redundancies, including:
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Cost and efficiency measures – such as recruitment freezes, reducing agency workers, or eliminating non-essential spending.
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Strategic workforce planning – forecasting future skill needs, allowing natural attrition, and upskilling staff to increase flexibility.
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Flexible working models – including part-time working, job shares, four-day weeks, or sabbaticals.
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Government-supported schemes – such as short-time working and temporary lay-offs.
In our recent poll, attendees shared what prevention methods they’re using:
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40% are focusing on cost management and efficiency
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35% are investing in strategic workforce planning
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15% are using flexible working as a risk mitigation strategy
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10% are exploring government-backed short-time working or lay-off schemes
Despite these preventative steps, 55% of businesses told us they’re still considering redundancies—underscoring the complexity of the current climate and the importance of strong HR planning.
Understanding the Scale of Redundancy and Legal Obligations
The number of employees at risk determines the consultation requirements under redundancy law. All redundancy situations require consultation, but collective consultation is only required when 20 or more employees at one establishment are at risk within a 90-day period.
Of the businesses considering redundancy:
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70% were dealing with fewer than 20 employees at risk, meaning individual consultation only was required.
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25% were considering 20–99 roles, requiring at least 30 days of collective consultation.
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5% had 100+ employees at risk, triggering a minimum 45-day consultation period.
If your business is reviewing its approach to preventing redundancy in 2025, understanding these thresholds is key to ensuring a lawful and fair process.
Is Voluntary Redundancy the Right Option?
Voluntary redundancy can be a useful tool for reducing headcount without forcing compulsory exits—but it’s not without its challenges.
75% of our webinar attendees said they were considering offering it. Here’s what they had to say:
Why employers are considering it:
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50% believed it would reduce the impact on morale
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30% felt it would ensure a smoother transition
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20% thought it would lower the risk of legal challenges
Why others are hesitant:
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40% were concerned about losing key talent
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30% highlighted the potential for higher costs
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20% worried about unpredictable uptake
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10% were concerned about setting a precedent
Voluntary redundancy isn’t a legal requirement, and businesses retain control over which applications to accept—so long as the process is fair and non-discriminatory.
What is ‘Bumping’ – and Could It Be a Viable Option?
Another lesser-known redundancy practice is ‘bumping’. This occurs when an employee at risk of redundancy is moved into a different role—causing the person currently in that role to be made redundant instead.
It’s a lawful option when handled correctly, but our poll revealed that 70% of employers were unaware of this practice. If you’re looking at options for preventing redundancy in 2025, it’s worth exploring whether bumping could help retain critical skills while managing necessary changes.
Key Takeaways for HR Teams and Business Leaders
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Smaller businesses are more likely to rely on individual HR managers or outsourced HR providers for support, while larger companies use internal HR teams.
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Cost management and workforce planning are the most common strategies for preventing redundancy in 2025.
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Voluntary redundancy is widely considered, but concerns about talent loss and financial implications remain.
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More education is needed around alternative strategies such as ‘bumping’, especially for smaller employers.
Final Thoughts: Supporting You with Redundancy Risk Management
Preventing redundancy in 2025 requires a balance between protecting business sustainability and supporting employees through change. Whether you’re looking to adopt new workforce strategies, navigate a consultation process, or ensure compliance, having the right HR advice is essential.
At HR Solutions, we offer tailored support to businesses of all sizes. If you’re reviewing your workforce strategy or considering redundancies, get in touch today to find out how we can help.
