Why how you let people go says everything about your business

Why how you let people go says everything about your business

Our subject expert

Sally Gwilliam

Partner - Employment Law

Imagine the scenario: Claire had worked at the same manufacturing business in the Midlands for 17 years. She wasn't just part of the furniture, she was part of the company's soul. But when a dip in demand hit hard, Claire was called into a short meeting, handed a redundancy letter, and left the building before lunch. No thank-you, no transition support, no notice that it was coming. Just silence.

A week later, her story was on LinkedIn. It gathered hundreds of comments. Former colleagues were shocked. Clients noticed. So did potential future recruits.

A moment of reckoning for employers

New figures from the CIPD's Labour Market Outlook show something telling: UK hiring confidence is at a record low. Nearly a third of employers expect to make redundancies in the coming months. It's a troubling sign, but also a critical moment for leadership.

For HR teams and in-house lawyers, the months ahead aren't just about headcount. They're about integrity. It's about how you lead your organisation through change without leaving scars on people or your brand.

Redundancy is never easy, but it doesn't have to be ugly. Done well, it can reflect a business's values, not just its balance sheet.

The hidden costs of getting it wrong

It's easy to view redundancy as a necessary evil - a line item in a crisis. However, dismissing the human impact is a mistake that can haunt a business long after the cost savings are banked.

The average unfair dismissal claim now exceeds £11,000, although financial loss is just the start. Poorly executed processes can trigger a domino effect: loss of trust, morale collapse, reputational damage, and even customer churn. With Glassdoor, LinkedIn, and TikTok just a click away, your internal decisions can quickly become public.

Our scenario with Claire at the beginning of the article demonstrates how quickly negative feedback can be shared. Your HR team, perhaps already overwhelmed, will be left putting out fires that could have been avoided with better planning and legal oversight.

A balancing act: risk, cost, and compassion

Understandably, many HR leaders are under pressure to manage restructures internally. Legal budgets are tight. Resources are stretched. Even experienced in-house teams can struggle to keep pace with ever-evolving employment law, especially with the added pressure of managing change communications, staff wellbeing, and strategic planning.

That's why many forward-thinking organisations are turning to legal partners not just for compliance, but for strategic support. Not every business needs a City law firm, but most need a specialist who understands what's at stake and can help you get it right the first time.

Redundancy, done right

Responsible redundancy isn't just about ticking legal boxes. It's about treating people with dignity. It's about showing the employees who remain that your values don't disappear when times get tough.

When done properly, redundancy can be a process that:

• Supports those leaving with fair packages and genuine respect.
• Reassures remaining staff that decisions were thoughtful and necessary.
• Protects the organisation's reputation as a responsible employer.

Our employment law solicitors often act as a behind-the-scenes guide and sounding board for HR leaders, helping them weigh options, design fair selection criteria, and manage communications. Sometimes we're brought in early, sometimes late. The difference? When we're there at the start, the outcomes are almost always smoother for everyone.

Your legacy is on the line

The reality is simple: in tough times, people remember how they were treated. As hiring confidence wavers and competition for top talent sharpens, your approach to redundancy could either be your Achilles' heel or your badge of honour.

An example of this is a London fintech that recently downsized 15% of its workforce. It held one-to-one consultations, brought in legal and wellbeing support, and offered outplacement services. A painful moment? Absolutely. But it walked away with respect from its team and a stronger culture than before.

Support that understands the pressures you're under

Our experienced employment law solicitors have supported hundreds of businesses through change. We understand the realities HR leaders face: limited time, limited budget, and high expectations. Our model is designed to offer senior, consistent legal support that's accessible and affordable. No runaway fees. Just deep expertise you can rely on.

Whether you need a second pair of eyes on your plan, help navigating a high-risk scenario, or someone to manage the process from start to finish, we're here to help.

Redundancy doesn't have to break your business. It can build its future.

About our expert

Partner - Employment Law

Sally joined the employment team in August 2021 as a senior employment solicitor and became a partner in October 2023. Sally qualified in 2004 at international law firm DLA Piper, and worked there for a further 11 years. There she gained excellent skills and experience in employment law working for medium and large businesses across multiple jurisdictions and on complex legal and strategic issues. Since 2015, Sally has worked for two smaller legal businesses where her client base changed to SMEs giving her a fantastic understanding of the differing needs and priorities of any size of business and in a wide range of sectors.