Facing redundancy? Learn your rights to pay, notice, consultation, and how to challenge an unfair process. Free expert guide from National Employees Union.
Redundancy means your job disappears. The role itself is no longer needed — not that you have done anything wrong. That distinction matters, because redundancy carries a specific set of legal rights: the right to a fair selection process, the right to consultation, the right to statutory pay, and the right to time off to find new work. When an employer cuts corners, the redundancy is not genuine — and you can challenge it. This guide covers everything you need to know to protect yourself.
Contents
- What is redundancy?
- When redundancy is genuine
- Your statutory rights
- Redundancy pay: how much you are entitled to
- The consultation process
- Selection criteria: how you should be chosen
- Alternative employment
- When redundancy is unfair
- FAQs
- How National Employees Union can help
What is redundancy?
Redundancy is defined in Section 139 of the Employment Rights Act 1996. It occurs when your employer has ceased or intends to cease carrying on the business, the business has moved or intends to move to a different location, or the need for employees to carry out work of a particular kind has ceased or diminished.
In simpler terms: the work has gone. The employer needs fewer people to do it, or no people at all. The focus is on the job, not the person.
Redundancy is one of the five potentially fair reasons for dismissal. But the reason alone does not make the dismissal fair. The process must also be fair. A genuine redundancy handled badly is still an unfair dismissal.
When redundancy is genuine
A genuine redundancy exists when the role itself has disappeared or significantly reduced. Warning signs that a redundancy may not be genuine include your role still existing under a different job title, someone else being hired to do the same work shortly after you leave, your employer using “redundancy” to remove you following a dispute, or the selection process being designed to target you specifically.
If the redundancy is not genuine, it is not a redundancy at all. It is a dismissal dressed up as one, and you may have a claim for unfair dismissal.
A redundancy that is not genuine is a dismissal, and the tests for unfair dismissal apply.
Your statutory rights
If you have been continuously employed for at least two years, you have the following statutory rights:
Right to redundancy pay
See the calculation below. This is a legal minimum — your contract or employer policy may provide more.
Right to consultation
Your employer must consult with you individually before making you redundant. Where 20 or more employees are being made redundant at one establishment within 90 days, collective consultation obligations apply (see below).
Right to a fair selection process
If your employer is selecting from a pool of employees doing similar work, the selection criteria must be objective and fairly applied.
Right to be considered for alternative employment
Your employer must consider you for any suitable alternative roles within the organisation before the redundancy takes effect.
Right to reasonable time off
You are entitled to reasonable paid time off during your notice period to look for new work or arrange training. This applies if you have at least two years’ service.
Right to notice
You are entitled to statutory notice: one week for each complete year of service, up to a maximum of 12 weeks. Your contract may provide longer notice — the longer period applies.
Redundancy pay: how much you are entitled to
Statutory redundancy pay is calculated based on your age, length of service, and weekly pay (capped at £700 per week for 2025/26).
| Your age at date of redundancy | Pay per complete year of service |
| Under 22 | Half a week’s pay |
| 22 to 40 | One week’s pay |
| 41 or over | One and a half weeks’ pay |
The maximum is 20 years’ service. The maximum statutory redundancy pay is therefore £21,000 (2025/26).
Example: An employee aged 45 with 10 years’ service and a weekly pay of £500 would receive: 10 years × 1.5 weeks × £500 = £7,500.
Many employers offer enhanced redundancy pay — a multiplier above the statutory minimum. Check your contract and any redundancy policy. An enhanced package is often negotiable, particularly where the employer wants a clean exit (see settlement agreements).
You can check your entitlement using the GOV.UK redundancy pay calculator.
The consultation process
Individual consultation
Your employer must consult with you before the redundancy decision is finalised. Consultation means a genuine dialogue, not a pre-determined announcement. Your employer should explain the business case for the redundancy, discuss whether the redundancy can be avoided, listen to your suggestions and alternatives, and consider you for redeployment.
A meeting where your employer tells you the decision has already been made is not consultation. It is notification. The distinction matters — a failure to consult properly makes the dismissal procedurally unfair.
Collective consultation
If your employer proposes to make 20 or more employees redundant at one establishment within 90 days, collective consultation rules apply under Section 188 of the Trade Union and Labour Relations (Consolidation) Act 1992.
Collective consultation must begin at least 30 days before the first dismissal takes effect (45 days if 100 or more employees are affected). The employer must consult with trade union representatives or elected employee representatives. The consultation must cover ways of avoiding dismissals, reducing the number of dismissals, and mitigating the effects.
Failure to conduct collective consultation can result in a protective award of up to 90 days’ pay per affected employee.
Selection criteria: how you should be chosen
If your employer is selecting from a pool of employees in similar roles, the selection must be based on objective, measurable criteria. Common fair criteria include attendance records (excluding disability-related or maternity-related absence), disciplinary record, skills, qualifications and experience, performance assessments (where based on documented evidence), and length of service.
What makes selection unfair
Selection is unfair if it is based on subjective personal opinions without supporting evidence, trade union membership or activities, pregnancy, maternity, or family leave, whistleblowing, asserting a statutory right, or part-time or fixed-term status.
Selection on any of these grounds makes the dismissal automatically unfair — no minimum service is required to bring a claim.
Your employer should share the selection criteria and your scores with you. If they refuse, this lack of transparency weakens their position and strengthens yours.
Alternative employment
Before making you redundant, your employer must consider whether suitable alternative employment exists within the organisation. This includes roles at the same location, roles at other locations within the business, and roles at a different level or with different duties, provided they are suitable.
If your employer offers you suitable alternative employment and you unreasonably refuse it, you lose your entitlement to statutory redundancy pay. The key question is whether the refusal was reasonable — considering the location, pay, status, hours, and working conditions of the alternative role.
You have a four-week trial period in any new role. If the role is unsuitable, you can leave during the trial and still claim your redundancy pay.
Alternative work often comes with different terms, so check whether your employer can change your contract.
When redundancy is unfair
A redundancy dismissal can be unfair if there was no genuine redundancy — the role still exists, the selection process was rigged or subjective, the employer did not consult with you properly, the employer failed to consider suitable alternative employment, the selection was based on a discriminatory or automatically unfair reason, or the employer changed your contract to force you into a redundancy situation.
If you believe your redundancy was unfair, you have three months minus one day from the effective date of termination to begin ACAS Early Conciliation. Contact ACAS or your trade union immediately.
Employers frequently offer terms instead of a process, which is where our guide to settlement agreements earns its place.
If you challenge it, our step-by-step tribunal guide sets out the timetable.
If the work moves to another employer instead of disappearing, it may be a TUPE transfer rather than redundancy.
An employer that dismisses staff to impose new terms is using dismissal and re-engagement, which carries rules of its own.
FAQs
Can I volunteer for redundancy?
Yes — many employers invite volunteers before selecting compulsorily. Volunteering can be advantageous if the package is generous and you are ready to move on. But you are not obliged to volunteer, and your employer cannot penalise you for not doing so.
Can I be made redundant while on maternity leave?
You can be made redundant during maternity leave if a genuine redundancy situation exists. However, under Regulation 10 of the Maternity and Parental Leave Regulations 1999, you have priority for any suitable alternative vacancy — your employer must offer it to you before offering it to other employees. Recent changes extend this protection to pregnancy and a period after returning from leave. Dismissal during maternity leave carries a high risk of being found unfair or discriminatory.
What if my employer offers a settlement agreement instead of going through the redundancy process?
This is common, particularly where the employer wants a faster, cleaner exit. A settlement agreement replaces the statutory process with a negotiated package. You waive your right to bring claims in exchange for a payment — often above the statutory minimum. Take independent advice before signing.
Can I be made redundant if I am the only person in my role?
Yes. If the role is no longer needed, the pool for selection may be one. But the employer must still consult, consider alternatives, and follow a fair process. A one-person pool does not excuse a shortcut process.
Is redundancy pay taxable?
Statutory and contractual redundancy payments are tax-free up to £30,000. Amounts above this threshold are subject to income tax. Payments in lieu of notice are taxable as earnings.
How National Employees Union can help
Redundancy is one of the most stressful events in working life. Knowing your rights and having someone to enforce them makes the process fairer and the outcome better.
National Employees Union members get:
- Assessment of the redundancy — is it genuine, and has the process been fair?
- Representation during consultation — ensuring your voice is heard and alternatives are explored
- Review of selection criteria and scores — challenging any criteria that are subjective or discriminatory
- Negotiation of enhanced packages — pushing for above-statutory terms where the circumstances justify it
- Advice on [settlement agreements](/blog/settlement-agreements/) if your employer offers one
- Support with [unfair dismissal claims](/blog/unfair-dismissal-uk/) or Employment Tribunal applications if the redundancy is not genuine or the process was flawed
Time limits are strict. Contact us as soon as redundancy is mentioned.
Join the National Employees Union
Membership from £15/month.
Written by the National Employees Union team. We represent employees in redundancy processes across the UK. This guide is reviewed regularly and was last updated in August 2026. For advice on your specific situation, contact us.
