Redundancy rights: A clear and practical guide

Facing redundancy can be stressful and uncertain, but understanding your rights can make the process clearer and more manageable. Under UK law, redundancy is a form of dismissal that happens when your employer no longer needs your role. This guide explains what redundancy means, what you’re entitled to, and the steps you can take if you feel the process hasn’t been fair.

What redundancy means

Redundancy is not about your performance or conduct. It’s a situation where your employer needs to reduce the number of staff or close part (or all) of the business. This might be due to reduced demand, a restructure, relocation, or the organisation shutting down operations.

Sometimes redundancy affects one specific role - for example, where you’re the only person doing that job - and in those cases, a selection process may not be required because the role genuinely no longer exists.

Your rights during the redundancy process

If you’re at risk of redundancy, your employer must follow a lawful, transparent process. This includes:

Consultation

Your employer must consult with you before making a final decision. This is your opportunity to ask questions, understand the reasons behind the proposed changes, and explore alternatives.

Fair selection

If more than one person is affected, your employer must use fair and objective criteria when choosing who is made redundant. Common selection methods include:

  • “Last in, first out”
  • Skills, qualifications and experience
  • Performance and capability
  • Asking for volunteers

Employers must not select you based on age, gender, pregnancy, disability or any other protected characteristic, as this may be discrimination and could make the dismissal unfair.

Consideration of alternative roles

Where possible, your employer should look for suitable alternative employment within the organisation and offer it to you. If you unreasonably refuse a suitable alternative role, you may lose your right to statutory redundancy pay.

What you may be entitled to

Redundancy can trigger several important rights and financial entitlements, including:

  • Redundancy pay (statutory or enhanced)
  • A notice period or payment in lieu of notice
  • A consultation meeting or consultation process
  • Reasonable time off to find work or attend interviews (if you’ve worked for at least two years)

You’re also entitled to payment for any unused holiday, and many employers continue pension contributions throughout your notice period.

Redundancy pay: how it works

If you’ve worked for your employer for at least two years, you may qualify for statutory redundancy pay, calculated based on:

  • Your age
  • Your length of service (up to 20 years)
  • Your weekly pay (up to the statutory limit)

You’ll receive:

  • Half a week’s pay for each full year under age 22
  • One week’s pay for each full year from age 22 to 40
  • One and a half weeks’ pay for each full year from age 41 onwards

Some employers offer enhanced redundancy packages, so it’s worth checking your contract or staff handbook.

You may not receive redundancy pay if your employer offers you a suitable alternative role and you refuse it without good reason.

Length of employment

Minimum statutory notice period

1 month to 2 years

1 week

2 to 12 years

1 week per full year of service

12 years or more

12 weeks

Your contract may offer more generous notice terms - but it cannot offer less.

Payment in lieu of notice (PILON)

Sometimes the employer chooses to end your employment immediately and pay you instead of requiring you to work your notice. Payment in lieu typically includes:

  • Your full basic pay for the notice period
  • Any contractual benefits, such as pension contributions or health insurance, depending on your contract

This should be clearly stated in your employment contract or agreed mutually.

If you believe the redundancy is unfair

If something about the process doesn’t feel right, you have options:

  1. Raise the issue with your employer informally
  2. Submit a formal grievance if needed
  3. Contact ACAS for free, impartial advice
  4. As a last step, consider an Employment Tribunal (time limits apply, usually within 3 months)

Acting quickly is important, especially if you think discrimination or unfair dismissal may be involved.

How we can support you

Redundancy doesn’t just affect your income — it can impact your confidence, wellbeing and future plans. While we can’t offer legal advice on individual cases, we can help with the personal and practical challenges that come with losing a job.

We’re here to support you with:

  • Understanding what benefits you could claim
  • Managing your money and dealing with debt
  • Protecting your emotional wellbeing
  • Building confidence and resilience
  • Planning your next steps and navigating change

You’re not alone. Call us free on 08081 311 333, or chat with us online — we’re here to listen and help.

For legal guidance on redundancy and employment rights, contact ACAS on 0300 123 1100.

You don’t have to go through this alone. Call us free on 08081 311 333 or chat with us online - we're here for you.