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Redundancy — Know Your Rights Before You Sign Anything

Redundancy is one of the most stressful workplace situations — and one where employers most commonly cut corners. You have significant legal rights around notice, pay, consultation, and fair selection. Before you sign any settlement or accept any redundancy payment, make sure you understand what you're entitled to. This guide covers the key rights you need to know.

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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 22–40
  • ✓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 £643 (2024/25)
  • ✓Maximum statutory redundancy pay: £19,290
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.
Use the government's redundancy pay calculator at gov.uk to check exactly what you're entitled to based on 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.

If you think your redundancy is unfair

1
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.
2
Contact ACAS
ACAS can provide free advice and can facilitate early conciliation — a required step before an Employment Tribunal claim. Call 0300 123 1100.
3
Early conciliation with ACAS
You must contact ACAS before submitting a tribunal claim. They'll attempt conciliation. This pauses the 3-month time limit.
4
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.

Get advice about your specific situation

Ash is a free UK guidance assistant. Ask about your rights, get step-by-step guidance, and generate a formal letter if you need one.

Talk to Ash — it's free

No sign-up · No account · Works for England, Scotland, Wales & Northern Ireland

Related guides

Unfair Dismissal
If your redundancy may actually be unfair dismissal.
Employment Tribunal
How to bring a tribunal claim for redundancy disputes.
Zero Hours Contracts
Redundancy rights if you're on a zero-hours contract.
Universal Credit
What benefits you can claim after redundancy.