Redundancy and Restructuring in Charities

Changes in funding, services or organisational priorities can sometimes require charities to restructure roles or reduce staff numbers. In these situations, organisations must follow fair and lawful redundancy processes.

Handling redundancy sensitively and transparently helps protect staff and maintain trust within the organisation.

ACAS provides clear guidance on handling redundancies and the legal responsibilities involved here.

When Redundancy May Apply

Redundancy situations may arise when:

• Funding for a role ends
• Services are reorganised or reduced
• Work is no longer required in a particular area
• The organisation restructures and certain posts are no longer needed

Redundancy relates to the role itself rather than the individual employee. More detailed definitions are available from GOV.UK here.

Consultation with Staff

Employers are expected to consult with affected employees before making any redundancy decisions. Consultation allows staff to:

• understand the reasons for the proposed changes
• ask questions
• explore possible alternatives
• put forward ideas or preferences

Fair and meaningful consultation is a legal requirement and an essential part of ensuring transparency.

Further guidance is available here.

Considering Alternatives

Before confirming redundancies, organisations should consider whether job losses can be avoided through options such as:

• redeploying staff into suitable alternative roles
• reducing or varying hours
• reorganising teams or duties
• freezing recruitment for other posts

Exploring alternatives demonstrates fairness and reduces the organisational and human impact of restructuring.

Supporting Staff Through Change

Redundancy can be challenging for both staff and the organisation. To support people through the process, employers should:

• communicate clearly, honestly and sensitively
• provide timely updates about decisions and timelines
• offer one‑to‑one meetings for staff to ask questions
• signpost employees to external advice and support

Staff may find the following helpful:

ACAS – Support for employees facing redundancy

GOV.UK – Redundancy and Notice Pay

Trustees and managers must ensure the organisation follows relevant employment law, keeps accurate records and applies policies consistently throughout the process.