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Your rights if you are made redundant: pay, notice, and consultation — Articles

Redundancy is one of the five potentially fair reasons an employer can dismiss an employee. But "it might be fair" does not mean "it is automatically fair." The employer must follow a proper procedure, select fairly, and offer alternatives — and you have statutory rights to notice, consultation, and redundancy pay. This article explains what you are entitled to. For the statutory calculation, see the redundancy pay calculation guide.

What is redundancy?

Under s.139 of the Employment Rights Act 1996, redundancy occurs when: (a) the employer ceases to carry on the business at all or at the place where the employee works; or (b) the requirements of the business for employees to carry out work of a particular kind have diminished or ceased. "Restructuring" that changes job titles without genuinely reducing the need for that type of work is not a genuine redundancy. An employer who uses redundancy as a cover for dismissal on grounds they cannot fairly rely on faces an unfair dismissal claim — see the unfair dismissal guide.

Statutory redundancy pay: what you are entitled to

If you have been continuously employed for at least two years, you are entitled to statutory redundancy pay (SRP). SRP is calculated based on: your age, your weekly pay (capped at £643 per week for 2026/27), and your length of service (up to 20 years). The formula: 0.5 weeks' pay per year under 22; 1 week's pay per year aged 22–40; 1.5 weeks' pay per year over 41. The maximum statutory redundancy payment is £19,290 (2026/27). Your employer may offer enhanced redundancy pay — check your employment contract. SRP is tax-free up to £30,000. For the calculation, use the redundancy pay calculation guide.

Notice: the minimum you must be given

You are entitled to statutory minimum notice under s.86 of the Employment Rights Act 1996: 1 week for each year of service (up to a maximum of 12 weeks for 12+ years), after a minimum of 1 month's service. Your contract may give longer notice. If your employer does not give notice, they must pay you in lieu (PILON). Notice periods must be given even during a redundancy consultation process — unless you agree to shorter notice in exchange for payment.

Collective consultation: 10 or more redundancies

If your employer proposes to make 10 or more employees redundant within 90 days at one establishment, they must collectively consult with elected employee representatives or trade union representatives for at least 30 days (or 45 days for 100+ redundancies) under s.188 of TULRCA 1992. This threshold was reduced from 20 to 10 by the Employment Rights Act 2025 (see the Employment Rights Act 2025 article for the full picture). Failure to collectively consult entitles affected employees to a "protective award" of up to 90 days' pay — see the redundancy consultation rights guide.

Individual consultation and fair selection

Even where collective consultation is not required (fewer than 10 redundancies), an employer must individually consult each employee at risk. The consultation must be genuine — it is not enough to inform you of a decision already made. The employer must: explain the selection criteria used; allow you to put your case; and consider suitable alternative employment within the business. Failure to individually consult, or to use fair and objective selection criteria, makes the dismissal unfair. See the your rights if facing redundancy article for the practical steps to take.

Trial periods and alternative roles

If your employer offers you a different role, you have a four-week statutory trial period under s.138 of the Employment Rights Act 1996. If the role is unsuitable, you can reject it within the trial period and still claim statutory redundancy pay. If you unreasonably turn down a suitable alternative without trialling it, you may lose your entitlement to SRP. "Suitability" considers the nature of the role, location, pay, and working conditions — the question is objective, not simply whether you want the job.

This article is for general information only and is not legal advice. Always check the official source and consult a qualified lawyer for your situation.