This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Can employees on parental leave be made redundant in the UK? This guide explains the legal protections in England and Wales, including consultation requirements, priority for suitable alternative employment, redundancy pay rights, and when dismissals may be classed as unfair or discriminatory.
Employees on parental leave in England and Wales can be made redundant, but only where the redundancy is genuine, properly justified, and handled in strict compliance with statutory protections. Parental leave status does not prevent redundancy action; however, it significantly increases the employer's legal obligations, particularly around consultation and suitable alternative employment.
UK employment law places enhanced safeguards on employees who are pregnant, on maternity leave, or on other forms of parental leave to ensure they are not disadvantaged during restructuring or workforce reductions.
What Counts as Parental Leave for Redundancy Protection?
Parental leave is an umbrella term covering several types of statutory and contractual leave, including:
- Maternity leave
- Paternity leave
- Shared parental leave
- Adoption leave
- Unpaid parental leave
- Neonatal care leave
- Parental bereavement leave
These forms of leave preserve the employment relationship, meaning the employee remains employed even if they are not actively working.
Under employment law guidance, redundancy protections apply to employees who are on or returning from parental leave, with specific priority rights in certain situations.
Can Redundancy Happen During Parental Leave?
Yes. An employer can make an employee redundant during parental leave if there is a genuine redundancy situation. This typically includes:
- Workplace closure
- Business restructuring
- Reduction in required roles
- Outsourcing or reorganisation
However, the existence of a genuine redundancy is not sufficient on its own. Employers must also demonstrate that the decision was not influenced by the employee's leave status and that all legal protections were followed.
Key Legal Principle: Redundancy Must Be Unrelated to Parental Leave
An employee cannot be selected for redundancy because they are on parental leave or because of any disadvantage arising from that leave.
Selection must be based on objective, non-discriminatory criteria such as:
- Skills and qualifications
- Performance history (excluding absence due to protected leave)
- Experience and role suitability
- Business requirements
Any selection influenced by pregnancy, maternity, or parental leave-related absence may result in an automatically unfair dismissal and potential discrimination claim.
Enhanced Protection: Suitable Alternative Employment
One of the most significant protections for employees on parental leave is priority access to suitable alternative employment.
Where a suitable alternative role exists, employers are legally required to offer it to employees on parental leave in preference to other affected staff.
This applies even if other candidates are better suited or more qualified.
What counts as “suitable alternative employment”?
A role is assessed based on:
- Pay and benefits
- Job status and seniority
- Location and working arrangements
- Skills and responsibilities required
- Contractual terms
If the role is substantially similar and on broadly equivalent terms, it is likely to be considered suitable.
Consultation Duties During Parental Leave
Employers must carry out meaningful consultation before confirming redundancy. This applies even if the employee is absent on parental leave.
Consultation should cover:
- Reasons for proposed redundancy
- Alternatives to redundancy
- Selection criteria and scoring
- Available alternative roles
- Employee concerns and representations
Consultation must be genuine and allow the employee a fair opportunity to respond. Failure to consult properly can lead to claims for unfair dismissal.
Selection Pools and Fair Process
Employees on parental leave must be included in the redundancy selection pool where appropriate. Employers must avoid isolating absent employees simply because they are not physically present.
A fair process generally involves:
- Identifying roles at risk
- Creating a fair selection pool
- Applying objective scoring criteria
- Including employees on parental leave in assessments
- Reviewing whether alternative roles exist
Excluding employees on parental leave from the selection process can make the redundancy unfair.
Redundancy Pay and Parental Leave
Employees on parental leave may be entitled to the same redundancy payments as other employees, provided they meet the usual conditions:
- At least two years' continuous employment
- Status as an employee
- Genuine redundancy dismissal
Where redundancy pay is due, it is calculated based on normal pay rather than reduced statutory parental leave pay.
This ensures employees are not financially disadvantaged due to taking leave.
Notice, Return Rights, and Timing Issues
Employees on parental leave retain their contractual rights during redundancy, including:
- Statutory or contractual notice
- Right to return to work (if redundancy does not proceed)
- Protection of continuity of employment
If a redundancy process begins during leave, the employer must ensure communication is maintained in an appropriate way, such as written correspondence or virtual meetings.
Common Legal Risks for Employers
Redundancy involving employees on parental leave carries significant legal risk. Common issues include:
- Failure to offer suitable alternative roles
- Poor or absent consultation
- Use of leave-related absence in scoring
- Failure to include the employee in selection pool
- Lack of evidence for genuine redundancy
Such issues can lead to claims for:
- Unfair dismissal
- Automatic unfair dismissal
- Discrimination related to pregnancy or parental status
Tribunals often scrutinise whether the employer followed a fair and documented process.
Practical Examples
Example 1: Role removal during maternity leave
A company removes a marketing role while the employee is on maternity leave. A new marketing role is created with similar duties. The employee must be offered the new role in priority if it is suitable.
Example 2: Team reduction during shared parental leave
A department reduces staff from 10 roles to 6. The employee on shared parental leave must be included in the selection pool and considered fairly, but may receive priority for suitable vacancies.
Example 3: Outsourcing of function
If a function is outsourced, employees on parental leave can still be made redundant, provided consultation is fair and alternative roles are considered.
What Employees Can Do If They Believe Redundancy Is Unfair
Where concerns arise, typical steps include:
- Requesting written explanation of selection criteria
- Reviewing whether suitable alternative roles exist
- Raising an internal grievance
- Considering an employment tribunal claim
- Seeking clarification on consultation and scoring
Strict time limits apply for tribunal claims, usually three months less one day from dismissal.
Key Takeaways
Employees on parental leave can be made redundant, but only where there is a genuine redundancy situation and a lawful, fair process is followed. Employers must provide enhanced protections, including priority access to suitable alternative employment and full consultation. Parental leave status cannot be used as a disadvantage in selection. Failure to comply with these rules can result in unfair dismissal or discrimination claims.
