Redundancy Claims in the Employment Tribunal

When an employee in England and Wales loses their job because of redundancy and believes their legal rights have been breached, they may be able to bring a redundancy claim to an employment tribunal. Redundancy claims in the tribunal can arise for a number of reasons, including failure to pay statutory redundancy, unfair redundancy dismissal, discriminatory redundancy processes, or failure to consult properly. This article explains the legal basis for redundancy claims, the types of complaints employees can make, the procedural steps involved, time limits, the role of early conciliation with Acas, and practical guidance on preparing and presenting a tribunal claim.

What Redundancy Claims Can Be Made in a Tribunal

Employees can bring different types of redundancy‑related claims to an employment tribunal, including:

Statutory Redundancy Pay Claims

Employees with at least two years' continuous service at the date of termination can claim statutory redundancy pay if it was not paid or was underpaid. Statutory redundancy pay is a legal entitlement, and failure to pay it can be pursued in a tribunal.

Unfair Dismissal Claims

Although redundancy is a potentially fair reason for dismissal, a dismissal can be unfair if the employer failed to follow a fair process or acted unreasonably. Fair procedures typically include meaningful consultation, objective selection criteria, and consideration of alternatives. Employees with the required qualifying period may bring an unfair dismissal claim if these standards were ignored.

Discrimination Claims Associated with Redundancy

If the redundancy process or decision was influenced by a protected characteristic (for example age, sex or disability), the employee may bring a discrimination claim alongside or instead of other claims. Discrimination claims generally do not require a minimum period of service.

Failure to Consult or Collective Redundancy Claims

Where an employer proposes large‑scale redundancies (20 or more employees within a 90‑day period at one establishment), the law requires collective consultation with employee representatives or a recognised trade union. A failure to consult can give rise to a protective award claim in the tribunal.

Starting the Process: Acas Early Conciliation

Before an employee can issue a tribunal claim, they must notify Acas (Advisory, Conciliation and Arbitration Service) that they are considering a claim. This begins the Early Conciliation process, which aims to resolve disputes without litigation.

• Acas Early Conciliation is mandatory before submitting a tribunal claim in most cases.
• Notification pauses (“tolls”) the statutory time limits while conciliation is active.
• If Acas cannot settle the dispute, it issues an Early Conciliation Certificate that the employee must include with their tribunal claim.

Early conciliation gives both parties an opportunity to resolve the matter quickly and often without the time and expense of a tribunal hearing.

Time Limits for Redundancy Claims

Employment tribunal time limits are strict and vary depending on the nature of the claim:

Unfair Dismissal

• Must be brought within three months less one day of the effective date of termination (usually the last day of employment).
• This is the standard limit for unfair dismissal and many associated claims.

Statutory Redundancy Pay

• Claims for statutory redundancy pay must generally be presented within six months less one day of the relevant date, typically the termination date.
• Redundancy pay time limits are longer than for unfair dismissal.

Discrimination Linked to Redundancy

• A discrimination claim brought with or alongside a redundancy complaint must usually be submitted within three months less one day from the discriminatory act.
• Different parts of a redundancy claim may therefore have different deadlines.

Consultation and Protective Awards

• Claims for failure to collectively consult may arise when 20 or more redundancies are proposed and consultation obligations are not met. These claims generally have a three‑month deadline from the last dismissal in the group.

Time limits begin running from the relevant event (for example the date of redundancy or last discriminatory act) and must be calculated carefully. Internal grievance procedures do not extend tribunal time limits; employees must start early conciliation within the statutory deadline.

Qualifying Periods and Eligibility

Different claims have qualifying periods:

• Statutory redundancy and unfair dismissal: Employees generally need two years' continuous service at the date of dismissal to bring these claims.
• Discrimination: There is typically no qualifying period for bringing discrimination claims, including when linked to redundancy processes.

Claims such as failure to consult collectively or protective awards may not require any qualifying length of service.

Preparing and Submitting a Tribunal Claim

1. Collect Evidence

Relevant evidence includes redundancy letters, consultation records, selection criteria, meeting minutes, payslips, and correspondence. Creating a clear timeline of events improves clarity and helps demonstrate strengths and weaknesses in the employer's approach.

2. Notify Acas and Obtain a Certificate

Begin the Early Conciliation process with Acas, and retain the certificate once conciliation ends or is declined. This certificate number is required to proceed with the tribunal claim.

3. Submit an ET1 Claim Form

The ET1 form is submitted online via the official tribunal portal. It must be filed by the adjusted deadline, taking into account pause for early conciliation. Claims can cover multiple complaints - for example, redundancy pay and unfair dismissal - but time limits differ for each.

4. Respondent's Response and Case Management

Once an ET1 is lodged, the employer (respondent) files an ET3 response. The tribunal may issue case management directions, schedule disclosures and consider preliminary issues, such as whether the claim is in time.

Tribunal Considerations and Hearings

The tribunal assesses evidence and arguments from both sides. Key considerations in redundancy claims include:

• Whether the redundancy was genuine and justified by business requirements.
• Whether the employer followed fair procedures, including consultation and objective selection.
• Whether alternatives to redundancy were considered.
• Whether discriminatory factors influenced the redundancy.

Tribunals aim to be less formal than courts but follow strict legal procedures and rules of evidence. Hearings may involve witness testimony, legal argument and examination of documentary evidence.

Remedies and Outcomes

If the tribunal upholds a redundancy claim, possible remedies include:

• Compensation: For statutory redundancy pay that was not paid, tribunals can award the entitlement plus interest.
• Unfair dismissal awards: These can include a basic award (similar to statutory redundancy calculation) and a compensatory award for financial loss, subject to statutory caps.
• Protective awards: For failure to consult collectively, tribunals may award up to 13 weeks' pay for each affected employee.
• Intersectional remedies: If discrimination is found, compensation may be uncapped, subject to legal principles and loss.

Remedies vary by claim type and individual circumstances, and tribunals consider evidence of loss, mitigation and contributory factors.

Risks and Practical Considerations

Tribunal Backlogs and Delays

Employment tribunals have experienced significant backlogs, meaning hearings can be many months or even over a year after filing. Claimants should prepare for possible delays in resolution.

Policy Changes on the Horizon

Proposed legislative changes under the Employment Rights Bill would extend time limits to six months for most claims and remove the two‑year qualifying period for unfair dismissal. These changes are anticipated but may not be fully in force yet.

Legal Advice and Costs

While tribunal claims can be brought without a solicitor, complex redundancy claims often benefit from legal advice to ensure evidence, time limits and procedures are correctly handled.

Key Takeaways

Redundancy claims in the employment tribunal enable employees in England and Wales to seek redress for disputes over statutory redundancy pay, unfair redundancy dismissals, discrimination and consultation failures. The process involves mandatory Acas Early Conciliation, careful calculation of strict time limits (three months for unfair dismissal; six months for statutory redundancy), and timely submission of an ET1 claim form. Tribunal proceedings include case management and hearings, and successful claims can result in compensation and other remedies. Being aware of qualifying periods, procedural steps and evolving legal changes is essential to protecting employment rights and navigating redundancy disputes effectively.