Your Rights After Being Made Redundant

Being made redundant can be stressful and raise urgent questions about your legal rights, financial entitlements and the options available if you feel the process was unfair. In England and Wales, employment law sets out clear protections for employees facing redundancy, including statutory redundancy pay, minimum notice periods, consultation requirements, protections against discrimination and avenues to seek redress through employment tribunals and courts. This article explains those rights and practical steps you can consider, using clear, accessible language that is accurate for both lay readers and solicitors.

What Redundancy Means

Redundancy occurs when an employer dismisses an employee because the job they do is no longer needed. This can result from:

• Business closure or relocation;
• Reorganisation or restructuring;
• Reductions in staff numbers;
• Technological or operational changes that make roles redundant.

Redundancy is a form of dismissal and must be handled in line with statutory protections and fair procedures.

Basic Rights After Redundancy

Statutory Redundancy Pay

If you have at least two years' continuous employment, you are normally entitled to statutory redundancy pay. This payment is calculated based on:

• Your age,
• Your weekly pay, and
• Your length of service.

Specifically, you are entitled to:

• Half a week's pay for each full year you were under age 22;
• One week's pay for each full year you were aged 22 to 40;
• One and a half week's pay for each full year you were aged 41 or over.

Service is capped at 20 years for statutory redundancy calculations. From 6 April 2025, the weekly pay used for calculating statutory redundancy pay is capped at £719, giving a maximum total of £21,570. These amounts can change annually with statutory upratings.

Your employer may offer enhanced or contractual redundancy pay above the statutory level, depending on your contract or workplace policy; always check your employment terms.

Statutory redundancy pay is tax free up to £30,000.

You must claim statutory redundancy pay within six months of your job ending. If your employer unreasonably refuses to pay, you can make a claim to an employment tribunal within this period.

Notice Periods and Other Payments

Minimum Notice Period

Your employer must give you a minimum notice period before your employment ends. The statutory minimums depend on your length of service:

• At least one week's notice if you've worked for the employer for between one month and two years;
• One week's notice for each year of service if you've worked for two to 12 years;
• 12 weeks' notice if you've worked for the employer for 12 years or more.

You may be paid in lieu of notice (PILON) if your employer chooses not to have you work the notice period.

Other Entitlements

Even if you are made redundant, you are entitled to:

• Outstanding holiday pay accrued but not taken;
• Pay in lieu of untaken notice, if applicable;
• Other contractual benefits specified in your employment contract.

Consultation and Fair Selection

Right to Consultation

Your employer must consult you before the redundancy takes effect. Consultation should involve:

• Explaining why redundancy is proposed;
• Discussing alternatives to redundancy where possible; and
• Allowing you to raise questions or proposals.

If your employer fails to carry out a meaningful consultation, this may make your dismissal unfair. This is particularly important in collective redundancy situations (e.g. 20 or more employees being made redundant within a 90‑day period), where special consultation obligations apply.

Fair Selection Criteria

Employers must use objective criteria to select which roles or employees are made redundant. You may be able to challenge your redundancy if you believe the selection criteria were discriminatory or unfair, such as:

• Selection based on age, gender, disability or other protected characteristics;
• Redundancy arising shortly after asserting workplace rights (e.g. complaining about pay);
• Improper application of selection scoring systems.

If you think your selection was unfair or discriminatory, you can raise a grievance with your employer and, if unresolved, pursue a claim to an employment tribunal.

Suitable Alternative Employment

Before making you redundant, your employer must offer you any suitable alternative role available within the organisation. The law defines suitability in terms of work type, pay, terms and conditions and your skills. You have the right to a four‑week trial period to assess whether alternative employment is suitable, and you can refuse the role during this period without losing your redundancy rights, provided you notify your employer appropriately.

If you unreasonably refuse a suitable alternative role, you may lose entitlement to statutory redundancy pay.

Challenging Redundancy: Practical Steps

Raise a Grievance

Begin by raising a formal grievance with your employer, setting out your concerns about the redundancy process, consultation, selection criteria, or pay.

Acas Early Conciliation

Before starting most tribunal claims related to redundancy - including unfair dismissal - you must notify Acas (Advisory, Conciliation and Arbitration Service) of your intention to claim and enter Early Conciliation. This is a mandatory step and helps facilitate settlement without tribunal hearings.

Employment Tribunal Claims

You may be able to bring an employment tribunal claim if:

• You believe your redundancy was unfair;
• You were dismissed for discriminatory reasons;
• Your employer failed properly to pay statutory or contractual redundancy entitlements.

Typical time limits for tribunal claims include:

• 3 months minus 1 day for unfair dismissal claims;
• 6 months minus 1 day for statutory redundancy pay claims.

These periods usually start from the date your employment ends. Failing to notify Acas or meet time limits can prevent your claim from proceeding.

Special Situations

Insolvent Employers

If your employer becomes insolvent and cannot pay redundancy entitlements, you may claim through the Redundancy Payments Service (RPS), part of the Insolvency Service. This service can pay statutory redundancy, notice pay and other owed sums; you normally apply online and provide evidence of your entitlement.

Fixed‑Term or Agency Workers

Your rights in redundancy can depend on your employment status. For example, some agency workers or fixed‑term employees may have different entitlements or need clarification of their employment status to confirm redundancy rights.

Risks and Considerations

Settlement Agreements

Employers may offer a settlement agreement (sometimes called a compromise agreement) that includes a payment in return for you waiving your right to tribunal claims. These are legally binding and often require you to obtain independent legal advice before signing. Consider carefully whether a settlement reflects your full entitlements.

Evidence and Documentation

Keep thorough records of:

• Employment contracts;
• Redundancy notices;
• Correspondence about redundancy and consultation;
• Payslips and calculations of redundancy pay.

This evidence supports any grievance, negotiation or tribunal claim.

Common Questions from our Readers

Can I challenge redundancy if I have less than two years' service?
Yes. You may not be entitled to statutory redundancy pay, but you can still challenge the fairness of the process or allege discrimination or breach of contract.

What if my employer offered inconsistent packages?
You can seek explanations in writing and compare terms. If you believe inequality or discrimination, you can raise a grievance or tribunal claim.

Can I claim interest on unpaid redundancy pay?
If a tribunal orders your employer to pay owed redundancy pay, interest may be awarded on the judgment sum.

Key Takeaways

If you are made redundant in England or Wales, you have legal rights that protect your financial entitlements and require fair treatment throughout the process. These include statutory redundancy pay, minimum notice periods, consultation, and protection from discriminatory or unfair selection. You can raise grievances, use Acas early conciliation, or - where necessary - bring claims to an employment tribunal if rights are breached. Understanding these rights and acting promptly enhances your ability to secure fair outcomes.