Want to handle redundancies well? Start by being a human.

Let’s be honest. Most businesses focus more on the process of redundancy than the people it impacts.

Policies. Checklists. Consultation windows. Letters that feel like they were written by a robot who’s never had a bad day in their life.

Yes, process matters. Big time. Redundancy must be genuine, legally sound, and operationally justified.

This is what really matters.

The way you treat people through redundancy should be just as genuine as the redundancy itself.

Too often, leaders emotionally detach from the human side of it. They see redundancy as a purely operational decision. But this isn’t just an operational decision. For the person receiving the news, it’s life-altering.

Redundancy hurts more than other types of exits

There’s a common belief that performance or conduct-related terminations are the “hard ones.” But redundancy can hit even harder.

Because in redundancy, the employee hasn’t done anything wrong. They’re not being exited for behaviour, attitude, or performance. They’re being told, “Things are changing around here, and we don’t need your role anymore.”

What they actually hear?

• You are no longer needed.
• Your skills don’t matter.
• You’re not worth paying for anymore.

The emotional and financial fallout is huge. Stop for a second and think about the weight of that impact and what you can do to lessen it.

A Christmas redundancy? Just don’t.

Here’s a real-life recent example.

A client wanted to make a team member redundant the week before Christmas.
Now, I understand the business logic, but Christmas redundancies have consequences that ripple far beyond payroll.

Here’s what we discussed it may look like for the team member.

• No job to return to after the holidays.
• Watching others celebrate and being asked by friends and family ‘how’s work?’
• Stressing about bills, gifts and groceries. (Yes, all those groceries)
• Entering a new year panicked instead of refreshed.

And post-Christmas redundancies? Just as brutal. Imagine walking back in after an expensive holiday you haven’t even finished paying for and being told your role is gone. It devastates the individual and destabilises the whole team.

The biggest redundancy mistakes businesses make

Avoid these common ones.

1. Treating redundancy like a checkbox exercise
   Process matters but delivering it coldly makes the experience much worse. Acknowledge it sucks.
2. Choosing terrible timing
   Right before Christmas, first day back from leave. Really? Timing can make the hit ten times harder.
3. Hiding behind “the business decision”
   People can feel when you emotionally check out. Front up. Own it. Be human.
4. Over-explaining or under-explaining
   Rambling creates confusion and being vague creates fear. Get your facts straight, be clear and compassionate.
5. Only offering the legal minimum
   Meeting the legal requirements isn’t the same as looking after people. Small, thoughtful extras make a big difference.
6. Ignoring the impact on the remaining team
   Morale, trust, and culture all take a hit if redundancies are handled poorly.

Doing the right thing doesn’t have to be expensive

We get it, you’re a small business and you don’t have to pay anything. But think about what it feels like to lose your job and be left with nothing.
A small gesture can make a massive difference.

Can you do any of these?

• Extra ex-gratia payments
• Pay out the notice period
• Provide access to EAP
• Outplacement support

These aren’t luxuries, they’re being human. People will remember how you treated them. It’s good karma.

Frequently Asked Questions

Is there ever a good time to make someone redundant, or should we just avoid certain periods altogether?
There’s no perfect time, but some timing makes a hard situation significantly worse. Right before Christmas, the first day back from leave, or straight after someone has taken on financial commitments like a holiday are all worth avoiding if you have any flexibility on timing. If the business need is genuinely urgent, there isn’t always a choice, but where you do have room to move the date, use it.

We’re a small business and can’t afford much beyond the legal minimum. Is that going to look bad?
Meeting your legal obligations is the baseline, not the ceiling, but doing the human side well doesn’t have to cost much. Paying out the notice period rather than requiring it to be worked, offering access to an EAP, or providing some outplacement support are all relatively low-cost ways to show people they were valued. Even without a big budget, how the conversation itself is delivered, with clarity and compassion rather than coldness, costs nothing and matters enormously.

How do we make sure the redundancy is legally genuine as well as handled well?
A genuine redundancy still requires proper consultation, a real discussion about redeployment options, and correct notice and pay. Handling someone with compassion doesn’t replace those legal steps, and following the legal steps doesn’t replace treating someone with compassion. You need both. A well-run process delivered coldly still damages trust, even if it holds up legally.

What about the team members who aren’t losing their jobs? Does how we handle this affect them too?
Yes, significantly. The remaining team is watching closely, and how a redundancy is handled shapes their sense of trust in leadership long after the person has left. A redundancy delivered with dignity tends to preserve morale and culture. One handled coldly or hidden behind vague corporate language about “the business decision” erodes trust well beyond the person directly affected.

Balance tough business calls with humanity

We get the reality. Budgets are squeezed. Costs are rising. Operational efficiencies matter.
Making redundancy decisions is hard for you too. It’s emotionally draining, stressful, and often deeply uncomfortable.

That’s why the human side matters. Redundancy delivered well can preserve dignity, trust, and your culture. Delivered poorly? It can break all three.

We’ve supported enough businesses through this to know that:

• You can make business decisions without discarding humanity.
• You can reduce roles without destroying dignity.
• You can be cost-conscious without being cold.

At HR Gurus, we know redundancy is tough on everyone, including you. If you want to handle redundancy the human way, reach out to HR Gurus, we’ll support and your people with clarity and compassion.