Redundancy: Know Your Rights Before You Sign Anything

Last updated: 1 May 2026Checked against primary legislation on legislation.gov.uk

Redundancy is one of the most stressful workplace situations, and one where employers most commonly cut corners. Before you sign any settlement or accept any payment, it's worth understanding the rights you have around notice, pay, consultation, and fair selection.

Key points

✓Statutory redundancy pay needs 2 years' continuous employment
✓Weekly pay capped at £751 (2026/27); maximum payout £22,530
✓1 week's notice per year of service, up to 12 weeks
✓Collective consultation: 30 days for 20+, 45 days for 100+ redundancies
✓Employment Tribunal claims: 3-month-minus-one-day deadline from dismissal

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What counts as redundancy?

Redundancy is a specific legal concept. It occurs when:

✓The employer closes the business entirely
✓The employer closes the workplace where you work
✓The employer reduces the number of employees doing a particular type of work
✓The work you were employed to do has ceased or diminished

If your employer says "redundancy" but your role is actually being replaced by someone else doing the same or substantially similar work, this may be unfair dismissal rather than redundancy, you can challenge this.

Statutory Redundancy Pay

You're entitled to statutory redundancy pay if you've been continuously employed for at least 2 years. The amount depends on your age, weekly pay, and length of service:

✓Half a week's pay for each full year of service while you were under 22
✓One week's pay for each full year of service while aged 22 to 40
✓One and a half week's pay for each full year of service while aged 41 or over
✓Maximum 20 years of service counts
✓Weekly pay is capped at £751 (2026/27)
✓Maximum statutory redundancy pay: £22,530

Your employer may offer more, called contractual or enhanced redundancy pay. Check your employment contract. If your employer has a redundancy policy, they must follow it.

Work out your figure: use our free redundancy pay calculator to estimate your statutory entitlement from your age, pay, and length of service.

Notice entitlements

You're entitled to statutory minimum notice, or whatever is in your contract if it's more:

✓1 week's notice for each year of service (up to a maximum of 12 weeks)
✓Minimum 1 week's notice after 1 month of service
✓Your contract may give you more, check it
✓You can be paid in lieu of notice (garden leave or payment in lieu, PILON)
✓Notice pay is separate from redundancy pay

Consultation rights

Your employer must consult with you before making you redundant. The rules depend on how many people are being made redundant:

Individual consultation

Must happen for every redundancy. You have the right to be told about the redundancy situation, propose alternatives, and appeal the decision. You can bring a companion to consultation meetings.

Collective consultation

20+ redundancies: minimum 30 days consultation. 100+ redundancies: minimum 45 days. Employer must notify the government (HR1 form). Must involve a recognised trade union or elected employee representatives.

If your employer fails to properly consult, you can claim a Protective Award at an Employment Tribunal, up to 90 days' pay per employee. You can also claim unfair dismissal if the lack of consultation was part of a flawed process.

Fair selection, challenging how you were chosen

If several people do similar work, your employer must use a fair, objective selection process to decide who to make redundant. Common selection criteria include attendance records, performance, skills, and length of service. However, selection is automatically unfair if you were chosen because of:

✓Pregnancy or maternity leave
✓Whistleblowing (making a protected disclosure)
✓Trade union membership or activities
✓Exercising a statutory right (e.g. requesting flexible working)
✓A protected characteristic under the Equality Act 2010

You have the right to ask your employer to explain the selection criteria and how you were scored. If you believe you were unfairly selected, raise a grievance and consider an Employment Tribunal claim, there's a 3-month time limit from the date of dismissal.

Can you be made redundant on maternity leave?

Being made redundant while on maternity leave is one of the most legally complex redundancy situations, and you have significantly stronger protections than other employees.

✓Your employer CAN make your role redundant while you are on maternity leave, if the redundancy is genuine
✓However, you have the right to be offered any suitable alternative vacancy that exists, before anyone else, and without needing to apply or compete
✓This priority right applies to vacancies within your employer's group, not just your immediate employer
✓If a suitable alternative exists and your employer does not offer it to you, the dismissal is automatically unfair
✓You cannot be selected for redundancy BECAUSE of your pregnancy or maternity leave, this is automatically unfair dismissal AND pregnancy discrimination
✓The protection applies for the whole of your maternity leave, including the period after you return (the 'protected period' continues for up to 18 months from the birth of your child)

If you are on maternity leave and made redundant without being offered a suitable alternative role, this is likely automatically unfair dismissal. You do not need 2 years' service to claim, the 2-year qualifying period does not apply to automatically unfair dismissal for pregnancy or maternity reasons. Seek advice urgently, the 3-month time limit still applies.

Maternity redundancy pay: Your redundancy pay must be calculated on your full contractual salary, not the reduced maternity pay you are currently receiving. Employers who calculate it on statutory maternity pay are likely underpaying you.

Can you be made redundant while off sick?

Yes, being on sick leave does not automatically protect you from redundancy. However, there are important rules your employer must follow:

✓Your employer must still carry out a fair selection process and proper consultation, being off sick does not allow them to bypass this
✓Consultation meetings must be adapted if you cannot attend due to illness, for example, a phone or video call, or written submissions
✓If your illness is related to a disability under the Equality Act 2010, selecting you for redundancy because of your sickness absence may be disability discrimination
✓Redundancy pay is calculated on your normal weekly pay, not the reduced sick pay you are receiving
✓If you are dismissed by reason of redundancy while on long-term sick leave, you may be able to claim both redundancy pay AND ill-health dismissal pay (seek advice)
✓Selection criteria such as 'attendance records' must be applied carefully, if disability-related absences are included without adjustment, this may be unlawful

If you have a disability and are on sick leave, ask your employer to confirm in writing which absences were included in your attendance score. Disability-related absences should usually be discounted. If they were not, raise a grievance and seek advice from ACAS (0300 123 1100) or a specialist employment solicitor.

Redundancy during pregnancy

If you are made redundant while pregnant, before you start maternity leave, you have the same strong protections as during maternity leave:

✓Selecting you for redundancy because of your pregnancy is automatically unfair dismissal and sex discrimination
✓You do not need 2 years' service to bring an automatically unfair dismissal claim linked to pregnancy
✓Your employer must offer you any suitable alternative vacancy ahead of other employees, the same priority right as on maternity leave
✓The protected period begins when you become pregnant and runs for 18 months from the expected week of childbirth (or actual birth if earlier)
✓If your role is redundant before you start maternity leave, you should receive your redundancy package AND remain entitled to Statutory Maternity Pay (SMP) if you meet the qualifying conditions

Keep written records of when you told your employer about your pregnancy, and the timing of any redundancy announcement. If the timing looks suspicious, for example, your role was identified for redundancy shortly after your employer found out you were pregnant, this evidence could be crucial.

Suitable alternative roles, what this means in practice

If your employer has a suitable alternative vacancy, they must offer it to you if you are on maternity leave, pregnant, or within the protected period. A "suitable alternative" means:

✓The work is appropriate for you given your skills, qualifications, and experience
✓The terms and conditions are not substantially less favourable than your current role
✓The location is reasonable, broadly similar to your current place of work
✓A different job title or department does not automatically make it unsuitable, the substance of the role matters

You have the right to a 4-week trial period in any alternative role offered under these rules. If you decide the role is unsuitable during the trial, you can still claim redundancy pay, you do not lose it by trying the alternative role.

If you think your redundancy is unfair

Raise an internal appeal

Most redundancy processes include a right of appeal. Use this first and document everything in writing. The ACAS Code of Practice on Disciplinary and Grievance Procedures doesn't directly apply to redundancy, but the principles of fairness do.

Contact ACAS

ACAS can provide free advice and can facilitate early conciliation, a required step before an Employment Tribunal claim. Call 0300 123 1100.

Early conciliation with ACAS

You must contact ACAS before submitting a tribunal claim. They'll attempt conciliation. This pauses the 3-month time limit.

Employment Tribunal claim

If early conciliation fails, you have 3 months minus one day from the date of dismissal to submit a tribunal claim. Don't miss this deadline, it is rarely extended.

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Frequently asked questions

How much statutory redundancy pay am I entitled to?

Statutory redundancy pay is based on your age, weekly pay (capped at £751, 2026/27), and years of service (up to 20 years). You receive half a week's pay per year worked under age 22, one week's pay per year aged 22 to 40, and one and a half week's pay per year aged 41 or over. The maximum statutory payment is £22,530.

How much notice must my employer give before making me redundant?

Your employer must give you at least 1 week's notice for each year of service (up to 12 weeks). If you have been employed for 2 or more years, collective consultation rules may also apply. For 20 or more redundancies at one establishment, a minimum of 45 days' consultation is required.

What is a protective award for redundancy?

If your employer fails to carry out the required collective consultation, you can claim a protective award at an Employment Tribunal. The tribunal can award up to 90 days' pay per affected employee. This is in addition to any redundancy pay or unfair dismissal compensation you are entitled to.

Can I claim unfair dismissal if I was made redundant?

Yes, if you have 2 years' continuous employment. Common grounds include: the redundancy was not genuine, the selection process was unfair or discriminatory, a suitable alternative role was available and not offered to you, or proper consultation did not take place. A successful claim can result in reinstatement or compensation.

What happens to my redundancy pay if the company goes insolvent?

If your employer becomes insolvent and cannot pay you, you can claim statutory redundancy pay, unpaid wages, holiday pay, and notice pay from the government's Redundancy Payments Service (RPS) through the Insolvency Service. Payments are capped at the same statutory limits.

Can I be made redundant while on maternity leave?

Yes, your role can genuinely be made redundant while you are on maternity leave. However, your employer must offer you any suitable alternative vacancy that exists before offering it to anyone else. If they fail to do this, the dismissal is automatically unfair. You also cannot be selected for redundancy because of your maternity leave, that is automatically unfair dismissal and sex discrimination. You do not need 2 years' service to bring this type of claim.

Is my redundancy pay calculated on maternity pay or my normal salary?

Your redundancy pay must be calculated on your full normal salary, not the reduced rate of statutory maternity pay you are currently receiving. Employers who base redundancy pay on maternity pay are likely underpaying you. Challenge this in writing and seek advice from ACAS or an employment solicitor.

Can I be made redundant while on sick leave?

Yes, being off sick does not automatically protect you from redundancy. However, your employer must still run a fair process and consult you, adapting meetings to accommodate your illness if needed. If your illness is connected to a disability, including disability-related absences in selection criteria without adjustment may be disability discrimination. Redundancy pay should be based on your normal salary, not sick pay.

Do I have to accept the alternative role my employer offers me?

No. You have the right to refuse a suitable alternative role without losing your redundancy pay, but only if you have genuine reasons for thinking it is unsuitable. You also have the right to a 4-week trial period in the new role. If you decide it is unsuitable during the trial, you can still claim redundancy pay. If you refuse a genuinely suitable role unreasonably, you may forfeit your right to statutory redundancy pay.

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Know Your Rights UK. "Redundancy: Know Your Rights Before You Sign Anything." Know Your Rights UK, https://www.knowyourrightsuk.com/employment/redundancy