Redundancy Rights: What you are entitled to in the UK
Being told your job is at risk of redundancy can be worrying, but you have important redundancy rights under UK employment law. Your employer must treat you fairly, follow a proper process and honour your contract. If they do not, you may be able to bring a claim for unfair dismissal or for a failure to consult.
In this guide, the employment law team at Versus Law Solicitors explains your redundancy rights in England, Wales and Scotland, including fair selection, consultation, notice, redundancy pay and what to do if something goes wrong.
What is redundancy?
Redundancy is a form of dismissal that happens when your employer needs fewer people to do a particular kind of work. This usually happens because:
- The business, or your workplace, is closing
- Your role is no longer needed
- The business needs fewer employees to do the same work
Redundancy is about the role, not the person. If your employer is really dismissing you for another reason, such as performance or conduct, and calling it redundancy, that may be unfair dismissal.
Your redundancy rights to fair selection
If only some roles are going, your employer must use a fair and objective method to decide who is selected. Common selection criteria include:
- Skills, qualifications and experience
- Performance records
- Attendance and disciplinary records, as long as absences linked to a disability, pregnancy or maternity are not counted against you
Your employer must not select you because of a protected characteristic, such as age, sex, race, disability, religion or belief, sexual orientation, gender reassignment, pregnancy or maternity, or marriage or civil partnership. You also cannot be selected because you are a trade union member, a whistleblower, or because you have asserted your statutory rights, such as asking for flexible working.
If you think you were selected unfairly, ask your employer to explain how the criteria were applied to you and use any appeal process they offer.
Your redundancy rights to consultation
Before making you redundant, your employer must consult you. Consultation means genuinely discussing the proposals with you, explaining why your role is at risk, listening to your views and considering ways to avoid or reduce redundancies, such as alternative roles.
The type of consultation depends on how many people are affected:
| Number of proposed redundancies at one workplace within 90 days | What the law requires |
|---|---|
| Fewer than 20 | Individual consultation with each employee. There is no set minimum time, but it must be meaningful |
| 20 to 99 | Collective consultation with employee representatives or a recognised trade union, starting at least 30 days before the first dismissal |
| 100 or more | Collective consultation starting at least 45 days before the first dismissal |
In collective redundancies, employers usually still meet employees individually as well. If there is no union, staff must be given the chance to elect representatives.
If your employer fails to carry out collective consultation properly, a tribunal can order them to pay a “protective award” of up to 180 days’ gross pay for each affected employee. This maximum doubled from 90 days for dismissals from 6 April 2026.
Suitable alternative employment
Your employer should look for other suitable roles within the business before making you redundant. If they offer you a suitable alternative role:
- You are entitled to a 4-week trial period in the new role, without losing your right to redundancy pay
- If the role turns out not to be suitable, you can end the trial and still be treated as redundant
- If you unreasonably turn down a suitable offer, you may lose your right to statutory redundancy pay
If you are pregnant, on maternity, adoption or shared parental leave, or have recently returned from it, you have priority for any suitable alternative vacancy. This protection covers pregnancy and lasts until 18 months after the birth or adoption.
Your redundancy rights to notice
You must be given notice before your employment ends. The statutory minimum notice periods are:
| Length of employment | Minimum notice |
|---|---|
| 1 month to 2 years | At least 1 week |
| 2 to 12 years | 1 week for each complete year |
| 12 years or more | 12 weeks |
Your contract may give you a longer notice period, but never a shorter one. Your employer must give you whichever is longer.
Pay in lieu of notice
If your contract allows it, your employer may end your employment straight away and pay you for your notice period instead. This is known as pay in lieu of notice (PILON). It is taxed in the same way as your normal pay.
Gardening leave
Your employer may ask you to stay at home during your notice period. This is called gardening leave. You remain employed and receive your normal pay and benefits, but you:
- Must still follow the terms of your contract
- Can be asked to come back to work if needed
- Cannot start working for a new employer until your notice period ends
Your redundancy rights to redundancy pay
You are entitled to statutory redundancy pay if you are an employee with at least 2 years’ continuous service. Check your contract too, as your employer may offer enhanced, or “contractual”, redundancy pay that is more generous.
How statutory redundancy pay is calculated
Statutory redundancy pay is based on your age, length of service and weekly pay. For each complete year of service you get:
| Your age during that year of service | Redundancy pay |
|---|---|
| Under 22 | Half a week’s pay |
| 22 to 40 | 1 week’s pay |
| 41 and over | 1.5 weeks’ pay |
Only your last 20 years of service count, and a week’s pay is capped. For redundancies on or after 6 April 2026, the cap is £751 a week, so the maximum statutory redundancy payment is £22,530. The cap usually rises every April.
You can work out your entitlement using the GOV.UK redundancy pay calculator.
Is redundancy pay taxed?
The first £30,000 of a redundancy payment is usually tax-free. However, pay for your notice period, holiday pay and any bonuses are taxed as normal earnings.
Settlement agreements
Sometimes employers offer an enhanced package in return for you signing a settlement agreement, in which you agree not to bring a claim against them. You must get independent legal advice before signing one, and employers usually contribute towards the cost.
Time off to look for a new job
If you have at least 2 years’ continuous service, you are entitled to reasonable paid time off during your notice period to look for work or arrange training. Your employer only has to pay up to 40% of one week’s pay for this time off, however long it lasts, although many employers are more generous.
What to do if your redundancy rights are breached
If you think your redundancy was unfair, for example because there was no genuine redundancy, the selection was unfair or you were not properly consulted, you have options:
- Appeal internally. Use your employer’s appeal process and set out your concerns in writing.
- Contact Acas. Before you can bring most employment tribunal claims, you must notify Acas and go through Early Conciliation, a free service that tries to resolve the dispute.
- Bring a tribunal claim. If the dispute is not resolved, you can bring a claim, for example for unfair dismissal, discrimination, unpaid redundancy pay or a protective award.
Time limits are strict
From 1 October 2026, the time limit for bringing most employment tribunal claims increased from 3 months to 6 months, extended by any time spent in Early Conciliation. If your dismissal happened before then, the old 3-month limit may still apply. Get advice as early as possible so you do not miss your deadline.
Who can claim unfair dismissal?
At present, you usually need 2 years’ continuous service to claim unfair dismissal. This qualifying period is due to fall to 6 months for dismissals from 1 January 2027. You do not need any minimum service to bring a discrimination claim, or a claim for dismissal for certain automatically unfair reasons, such as whistleblowing.
Your last day checklist
Before you leave, make sure you have:
- A letter confirming your redundancy and your leaving date
- A written statement showing how your redundancy pay was calculated
- Details of all money owed to you, including redundancy pay, notice pay and any unused holiday pay
- Details of your workplace pension
- A reference, or confirmation that one will be provided
- Your P45
Get advice on your redundancy rights
If you are facing redundancy or think you have been treated unfairly, the employment law team at Versus Law Solicitors can help. We can check whether your employer has followed the correct process, review any settlement agreement and advise you on your options.
Worried about your redundancy? Complete our enquiry form or call us on 0161 249 5087 to find out whether you have a case.
-
Your First Home scheme explained
-
Mould? What Mould? The AI Photos Fooling UK Home Buyers
-
What is the biggest mistake in a will?
-
Common conveyancing fees explained
-
Are conveyancing fees based on property value?
-
What does a conveyancing solicitor do during a property purchase?
-
What happens on exchange of contracts?
-
What’s the difference between exchange of contracts and completion?
-
What you need to know about buying a property jointly
-
Why is my conveyancing taking so long? The honest answer
