Who Qualifies for Redundancy Pay During Maternity Leave?

Employees on maternity leave remain fully protected under UK employment law, including in redundancy situations. Being on maternity leave does not remove redundancy rights, nor does it prevent an employee from receiving redundancy pay if their role is genuinely made redundant.

In fact, the law provides additional safeguards for employees on maternity leave to ensure they are not disadvantaged during restructuring or workforce reductions.

This article explains who qualifies for redundancy pay during maternity leave, how entitlement is determined, and what legal protections apply in England and Wales.

Legal Framework for Redundancy During Maternity Leave

Redundancy during maternity leave is governed by a combination of:

• Employment Rights Act 1996 (ERA 1996)
• Maternity and Parental Leave Regulations 1999
• Equality Act 2010

These laws work together to ensure that:

• Redundancy is only lawful if it is genuine
• Selection does not discriminate against pregnancy or maternity
• Employees on maternity leave are treated fairly in redundancy processes
• Additional protection applies when suitable alternative work exists

Who Qualifies for Redundancy Pay During Maternity Leave?

1. Employees on maternity leave whose role is genuinely redundant

An employee on maternity leave qualifies for redundancy pay if:

• Their job genuinely ceases to exist
• The redundancy is not related to pregnancy or maternity status
• The employer follows a fair redundancy process
• They meet statutory redundancy pay requirements

This includes both compulsory and voluntary redundancy situations.

2. Employees with at least 2 years' continuous service

To qualify for statutory redundancy pay, employees must usually have:

• At least 2 years' continuous employment
• Employee status under UK law (not contractor or self-employed)

Time spent on maternity leave counts towards continuous service. This ensures employees do not lose redundancy rights while absent.

3. Employees selected for redundancy while on maternity leave (fair selection)

Employees on maternity leave are protected from being selected unfairly. However, they can still be included in redundancy pools if:

• The selection criteria are objective
• The role is genuinely redundant
• The process is non-discriminatory

If redundancy occurs, statutory redundancy pay applies if eligibility conditions are met.

4. Employees not offered suitable alternative employment

Employees on maternity leave have enhanced protection regarding alternative roles.

Where redundancy is unavoidable, employers must offer a suitable alternative vacancy to an employee on maternity leave if one exists.

If:

• A suitable alternative role is available, and
• It is not offered

the dismissal may be automatically unfair, and redundancy rights may be affected.

Where no suitable alternative role exists, redundancy pay may still be due.

5. Employees whose redundancy occurs during maternity leave notice period

If redundancy notice is issued during maternity leave, employees may still qualify for:

• Statutory redundancy pay
• Statutory maternity pay (if eligible)
• Notice pay (which may be paid after maternity leave ends, depending on circumstances)

The timing of notice does not remove entitlement to redundancy pay.

Enhanced Protection for Employees on Maternity Leave

Right to suitable alternative employment

Employees on maternity leave have priority access to suitable alternative vacancies during redundancy situations.

This means:

• If a suitable vacancy exists, it must be offered
• No competitive interview process is required for that role
• The offer must be made before other employees are considered

Failure to comply may result in an automatically unfair dismissal claim.

Protection from discrimination

Under the Equality Act 2010, it is unlawful to:

• Select an employee for redundancy because they are pregnant or on maternity leave
• Treat maternity leave negatively in scoring or selection processes
• Penalise absence related to maternity leave

Any such conduct may lead to discrimination claims in addition to redundancy pay entitlements.

Who Does Not Automatically Qualify?

Employees on maternity leave may not qualify for redundancy pay where:

• They have less than 2 years' continuous service (for statutory redundancy pay)
• The dismissal is not a redundancy (for example, misconduct)
• They refuse suitable alternative employment without good reason
• The redundancy is not genuine or is linked to contract expiry without redundancy grounds
• The employee is self-employed or an independent contractor

However, maternity leave status does not itself exclude redundancy entitlement.

Calculation of Redundancy Pay During Maternity Leave

Statutory redundancy pay is calculated using:

• Length of continuous service
• Age of the employee
• Weekly pay (subject to statutory cap)

Importantly:

• Maternity leave counts as continuous employment
• Statutory caps on weekly pay still apply
• Enhanced redundancy schemes may provide higher payments if contractually agreed

Employees must be treated as if they were still in continuous employment during maternity leave.

Alternative Employment and Maternity Leave

Employers must consider alternative employment before confirming redundancy.

Where an employee is on maternity leave:

• Suitable alternative roles must be offered directly
• The employee is not required to compete for the role
• The offer must be made before dismissal takes effect

A failure to offer suitable alternative employment may make the redundancy automatically unfair.

Consultation Rights During Maternity Leave

Employees on maternity leave retain full redundancy consultation rights.

Employers must:

• Inform the employee about proposed redundancies
• Include them in consultation processes
• Allow them to respond to proposals
• Consider their input before final decisions

Where collective consultation applies, employees on maternity leave must still be represented.

Time Limits for Claims

If redundancy during maternity leave is disputed, typical tribunal time limits include:

• 3 months less one day for unfair dismissal claims
• 3 months less one day for discrimination claims
• Mandatory ACAS early conciliation before proceedings

Strict deadlines apply regardless of maternity status.

Common Legal Issues

1. Failure to offer suitable alternative employment

This is one of the most common legal errors. Employers must prioritise employees on maternity leave for suitable roles.

2. Discriminatory selection criteria

Selection based on attendance or availability during maternity leave can amount to unlawful discrimination.

3. Misunderstanding redundancy vs maternity protection

Maternity leave does not prevent redundancy, but it significantly increases procedural safeguards.

4. Incorrect calculation of service

Maternity leave must be included in continuous employment calculations for redundancy pay.

Practical Steps for Employees

Employees on maternity leave affected by redundancy should:

• Confirm redundancy reasons in writing
• Request details of selection criteria
• Ask about suitable alternative roles
• Check continuity of service records
• Retain copies of all correspondence

These steps are relevant for both internal resolution and tribunal claims.

Key Takeaways

Employees on maternity leave are fully entitled to redundancy pay if their role is genuinely redundant and statutory eligibility conditions are met. Maternity leave does not reduce redundancy rights and counts towards continuous service. Additional legal protections apply, including priority access to suitable alternative employment and strong safeguards against discrimination. Employers must follow strict procedural rules, or risk unfair dismissal and discrimination claims.