Redundancy Rights

What is redundancy?

Redundancy is a form of dismissal. It generally arises where an employer’s need for employees to do work of a particular kind has reduced or disappeared, a workplace is closing, or the business is closing altogether.

It is not enough for an employer simply to call a dismissal a “redundancy”. The underlying circumstances and process matter. If the real reason for dismissal is something else, such as conduct, performance or discrimination, describing it as redundancy does not necessarily make the dismissal a genuine redundancy.

GOV.UK describes redundancy as a situation where an employer needs to reduce its workforce. Employees facing redundancy may have rights relating to redundancy pay, notice, consultation, fair selection, suitable alternative employment and time off to find another job.

What redundancy rights might I have?

Depending on your circumstances, redundancy can involve several separate rights.

Does my employer have to consult me about redundancy?

Yes, employees being considered for redundancy should normally be consulted. Individual consultation is an important part of a fair redundancy process.

Consultation should be meaningful rather than simply announcing a decision that has already been made. It can involve discussing why redundancies are proposed, whether alternatives exist, how many roles may be affected and how employees will be selected.

There is no fixed statutory minimum length for an individual redundancy consultation. The appropriate process depends on the circumstances.

For larger-scale redundancies, separate collective consultation rules can apply. GOV.UK currently states that collective consultation rules apply where an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period.

The government is also developing further changes to the collective redundancy framework. Proposed organisation-wide thresholds are not the same as rules already in force and should not be treated as current law until the relevant legislation takes effect.

How should employees be selected for redundancy?

If an employer needs to reduce the number of employees but does not need to dismiss everyone doing a particular job, it may need to select employees from an appropriate pool.

Selection criteria should be reasonable and capable of being applied fairly. Depending on the circumstances, criteria might include skills, qualifications, performance, disciplinary record, attendance or length of service.

However, some criteria can create legal risks. For example, selecting someone because of pregnancy, maternity, disability, age or another protected characteristic may raise discrimination issues. Certain absences or activities may also have specific legal protection.

A selection process should therefore be assessed in context rather than by looking only at the employer’s scoring system.

How much statutory redundancy pay could I get?

Eligible employees are generally entitled to statutory redundancy pay if they have at least two years’ continuous service and are dismissed by reason of redundancy.

For redundancies taking effect on or after 6 April 2026, the statutory weekly pay cap is £751 and the maximum statutory redundancy payment is £22,530. Statutory redundancy pay is calculated using age, weekly pay and complete years of service, subject to the statutory limits.

Service used for the statutory calculation is capped at 20 years. The weekly pay used for the calculation is also subject to the statutory cap.

Some employers offer enhanced redundancy payments under a contract, collective agreement or redundancy scheme. An enhanced payment can be greater than the statutory minimum, so the employment contract and applicable workplace policy should be checked.

GOV.UK provides a redundancy pay calculator for checking the statutory calculation.

Do I get notice pay when I am made redundant?

Redundancy is a dismissal, so employees will normally be entitled to a notice period or, where appropriate, payment in lieu of notice.

The amount of notice can depend on the employment contract and statutory minimum notice requirements. Your employer should tell you the proposed termination date and how notice will operate.

Notice pay is separate from statutory redundancy pay. Depending on the circumstances, you may be entitled to both.

You may also have outstanding holiday pay, wages, commission or other contractual sums that need to be considered when your employment ends.

What happens if my employer offers me another job?

An employer may offer suitable alternative employment instead of making an employee redundant.

Whether an alternative role is suitable depends on factors such as the work, terms, pay, location and other circumstances. If an employee unreasonably refuses suitable alternative employment, this can affect entitlement to statutory redundancy pay.

There is also normally a four-week trial period where an employee starts suitable alternative employment in certain redundancy situations. If the role is not suitable during the trial, the employee may retain redundancy rights, subject to the circumstances.

If you are offered a substantially different role, do not assume that accepting or rejecting it has no consequences. The offer, your existing contract and the reasons for refusing it should be considered together.

What if I think the redundancy is unfair?

A redundancy dismissal can potentially be unfair even where there is a genuine business reason for reducing the workforce.

An Employment Tribunal may consider whether there was a genuine redundancy situation, whether the employer used a fair selection process, whether appropriate consultation took place and whether dismissal was reasonable in the circumstances.

For an ordinary unfair dismissal claim, the employee will generally need to meet the applicable qualifying-service requirement. However, some dismissals connected with protected reasons can be automatically unfair, and discrimination claims operate under separate rules.

This means that a short period of service does not necessarily mean an employee has no legal protection.

What if there are 20 or more redundancies?

Collective redundancy consultation rules can apply where an employer proposes 20 or more redundancies at one establishment within a 90-day period.

Where those rules apply, the employer must consult appropriate representatives. These may be recognised trade union representatives or elected employee representatives, depending on the workplace.

The consultation should cover matters such as ways of avoiding the dismissals, reducing the number of employees dismissed and limiting the consequences for affected employees.

For 20–99 proposed redundancies, collective consultation must generally begin at least 30 days before the first dismissal takes effect. For 100 or more, it must generally begin at least 45 days beforehand.

From 6 April 2026, the maximum protective award for failure to comply with collective consultation obligations increased from 90 days’ pay to up to 180 days’ pay per affected employee. This is separate from statutory redundancy pay.

The current collective redundancy rules apply differently in Northern Ireland, where employment law is devolved. Employees in Northern Ireland should check the applicable Northern Ireland rules rather than relying on the England, Scotland and Wales framework.

What documents should I keep?

If you are facing redundancy, keep copies of documents relating to the proposed dismissal and the consultation process.

• your employment contract;
• redundancy policy or staff handbook;
• letters announcing or proposing redundancy;
• consultation invitations and meeting notes;
• the employer’s explanation for the redundancy;
• information about the selection pool and criteria;
• your individual scoring or selection information, where provided;
• details of alternative roles offered;
• your redundancy and notice calculations;
• the final dismissal or termination letter; and
• emails or messages relevant to the decision.

Keep a chronology of important events. Dates can become particularly important when assessing whether consultation was meaningful, whether the employer’s explanation changed, or whether a legal deadline is approaching.

What should I do if I am being made redundant?

1. Read the redundancy documents carefully. Identify the stated reason, proposed termination date, consultation arrangements and selection process.
2. Ask questions during consultation. You can ask why your role is affected, what alternatives have been considered and how employees are being selected.
3. Check the selection criteria. Look for factual errors, inconsistent scoring or criteria that may create discrimination or other legal issues.
4. Check alternative employment. If another role is offered, compare its terms and conditions with your existing role before deciding what to do.
5. Check the money. Review redundancy pay, notice pay, holiday pay and any contractual or enhanced redundancy payment.
6. Check deadlines. If you believe the dismissal is unfair or another employment right has been breached, check the relevant Employment Tribunal deadline promptly.

What are the common redundancy mistakes?

Assuming redundancy automatically means you are entitled to payment

Statutory redundancy pay has eligibility requirements, including the usual two-year continuous-service requirement. Contractual or enhanced schemes can have different terms.

Ignoring the consultation process

Consultation is not simply a formality. What was discussed, what alternatives were considered and whether the employer genuinely considered responses can matter when assessing fairness.

Accepting an alternative role without checking the terms

A role may have a different salary, location, duties or working arrangements. The suitability of the role and the consequences of accepting or refusing it should be considered carefully.

Waiting until employment ends before getting advice

Important evidence and decisions arise during the redundancy process. Employment Tribunal time limits can also be short, so waiting until everything is finished can create unnecessary risk.

Real-world redundancy scenarios

A role genuinely disappears

A business loses a major contract and no longer needs several employees to perform the affected work. The employer consults with affected employees, considers alternatives and applies an appropriate selection process where necessary. The existence of a genuine business reason does not remove the need for a fair process.

One employee appears to have been targeted

An employer announces redundancies but uses selection criteria that appear to disadvantage one particular employee. The employee believes the criteria were created after the decision to remove them had already been made. The documents and chronology may be important in assessing whether the selection was genuine and fair.

An alternative role is offered

An employee is told their current role is redundant but is offered another position. The new role has different duties and a different workplace. The employee should consider whether it is suitable and what accepting or refusing it could mean for redundancy pay.

A large-scale redundancy is announced

An employer proposes to dismiss 30 employees at one establishment. The collective redundancy rules may apply, including consultation with appropriate representatives and the relevant minimum consultation period. Failure to follow the collective process can create a separate claim for a protective award.

Frequently asked questions