Introduction
At KeystoneHR, we help SMEs navigate sensitive workforce changes like redundancy with fairness, compliance, and compassion. In small teams, every role matters, so the impact of redundancy can feel deeply personal. Our role is to guide businesses through the process legally and respectfully, protecting both people and reputation.
Client: Marketing agency Bristol‑based SME with 12 employees
Issue:
The company faced declining revenue after losing a major client. To reduce costs, one operations role was identified as at risk of redundancy. The affected employee, Taylor, had three years’ service and was well‑liked by colleagues.
Challenge
- Small team impact: Removing one role created operational strain.
- Legal compliance: The employer needed to follow fair redundancy procedures under English and Welsh law.
- Emotional sensitivity: In a close‑knit company, redundancy risked damaging morale.
- Risk management: Mishandling the process could lead to unfair dismissal claims.
Our Approach
We hadn’t worked with the company before so we wanted to familiarise ourselves with them and understand their goals to make sure that reducing cost through resource was the right decision. They had an old policy that we followed but also applied up to date legislation.
Step 1 - Business Case & Planning: Documented financial rationale and explored alternatives (reduced hours, redeployment, etc.).
Step 2 - Consultation: Held individual meetings with Taylor, explaining the situation transparently and inviting feedback. Reviewed feedback and considered against business goals.
Step 3 - Selection Process: Applied objective, non‑discriminatory criteria based on skills and business needs.
Step 4 - Decision & Communication: Confirmed redundancy outcome in writing, provided statutory pay and notice, and offered job search support.
Step 5 - Aftercare: Communicated openly with the team, thanked Taylor, and reinforced business stability. The company drafted Taylor a great review on her LinkedIn profile as well.
Outcome
Taylor was made redundant following a fair and transparent process. They received statutory redundancy pay, a positive reference, and support with job search. The company retained credibility by handling the process respectfully, and the remaining team felt reassured that decisions were made fairly.
KeystoneHR’s Role
- Compliance Assurance: Guided the company through redundancy law and fair consultation.
- Manager Coaching: Prepared leaders for sensitive conversations.
- Documentation: Provided templates for letters and redundancy calculations.
- Cultural Support: Helped maintain morale and reinforce trust during transition.
Although the company didn’t become a retained imminently client after this project, they did 7 months later once they had become more financially confident.
