Facing redundancy can be daunting and stressful.

UK law gives employees strong protections to ensure the process is fair.

This guide explains your redundancy rights, pay entitlements, and how to challenge unfair selection.

Redundancy happens when an employer needs to reduce the workforce. Common reasons include:

• Business closure.

• Workplace closure.

• Reduced need for employees in a specific role.

If your dismissal does not meet these criteria, it may not be a genuine redundancy and could amount to unfair dismissal.

1. Consultation

Your employer must consult with you before making you redundant. For large-scale redundancies (20+ employees), collective consultation rules apply. Failure to consult properly can make the redundancy unfair.

2. Fair Selection

Employers must use fair and objective criteria when deciding who to make redundant. These may include skills, qualifications, and performance. Unfair selection based on discrimination or personal bias is unlawful.

3. Notice Period

You are entitled to notice of redundancy:

• 1 week if employed between 1 month and 2 years.

• 1 week per full year of service between 2 and 12 years.

• 12 weeks if employed for 12 years or more.

4. Redundancy Pay

If you’ve worked for your employer for at least two years, you may be entitled to Statutory Redundancy Pay, calculated as:

• 0.5 week’s pay for each full year under age 22.

• 1 week’s pay for each full year between ages 22 and 40.

• 1.5 weeks’ pay for each full year aged 41 or over.

Weekly pay is capped, and so is the maximum number of years that can be counted.

5. Alternative Employment

Your employer should consider offering suitable alternative roles. Refusing a suitable offer without good reason may affect your redundancy pay.

In certain cases, a dismissal is automatically unfair, regardless of the reason your employer gives. These include dismissal connected to:

• Pregnancy, maternity, paternity, or adoption leave.

• Whistleblowing (raising concerns about wrongdoing).

• Trade union membership or activities.

• Health and safety concerns raised by the employee.

• Discrimination under the Equality Act 2010 (e.g. age, gender, disability, race, religion, sexual orientation).

In these situations, you do not need two years of service to make a claim.

You may have grounds to challenge if:

• You were unfairly selected (e.g. due to age, gender, or union membership).

• The consultation was inadequate.

• The redundancy was not genuine.

In these cases, you may claim unfair dismissal.

Employees made redundant may also be able to claim:

• Notice pay.

• Holiday pay.

• Unpaid wages.

• Jobseeker’s Allowance or Universal Credit.

We can:

• Review your redundancy process.

• Ensure your statutory and contractual entitlements are paid.

• Challenge unfair redundancy decisions.

• Negotiate enhanced redundancy packages.

Redundancy does not mean losing your rights. If you are facing redundancy, seek legal advice to make sure the process is fair and that you receive everything you are entitled to.

Can I be made redundant while on maternity leave?

Yes, but you have extra protections. You must be offered any suitable alternative vacancies ahead of other employees.

What if my employer goes insolvent?

You can claim certain redundancy payments directly from the government.

Do I pay tax on redundancy pay?

The first £30,000 is usually tax-free.