UK redundancy: your rights and what to do next

1. Is it a genuine redundancy?

Redundancy means your employer needs fewer people to do your kind of work — for example the business is closing, moving, or restructuring. Your employer must use a fair selection process (for example skills, performance or attendance records), and must not select you because of age, sex, race, disability, pregnancy, maternity, trade union activity or other protected reasons. If your job is replaced by someone else doing the same work, it may not be a real redundancy.

2. Consultation

Your employer should talk to you before deciding — explaining why, how people were selected, and whether there are alternatives. If 20 or more redundancies are proposed at one site within 90 days, collective consultation must start at least 30 days before the first dismissal (45 days for 100 or more). Since 6 April 2026, an employer that fails to do this can be ordered to pay a protective award of up to 180 days' pay per person.

3. Statutory redundancy pay

With 2 years' service or more, you are entitled to:

• half a week's pay for each full year worked when under 22
• one week's pay for each full year worked aged 22 to 40
• one and a half weeks' pay for each full year worked aged 41 or over

Service is capped at 20 years and weekly pay at £751. Your contract may give you more ("enhanced" redundancy pay) — check it. Use the official GOV.UK redundancy pay calculator. If your employer is insolvent, you can claim from the Redundancy Payments Service.

4. Notice, holiday and time off

• Statutory notice: 1 week if employed 1 month to 2 years, then 1 week per full year, up to 12 weeks. Your contract may give more.
• Your employer may pay you in lieu of notice instead of having you work it.
• You must be paid for holiday you have built up but not taken.
• With 2 years' service you can take reasonable paid time off during notice to look for work or training.
• Your employer should offer any suitable alternative job; you get a 4-week trial period without losing redundancy pay if it doesn't suit.

5. Tax and settlement agreements

Statutory and enhanced redundancy pay is normally tax-free up to £30,000 in total. Notice pay, holiday pay and bonuses are taxed as normal. If you are offered a settlement agreement, you must get independent legal advice before signing — employers often contribute towards the cost.

6. If something seems wrong

Raise it in writing with your employer first (an appeal or grievance). Before making a tribunal claim you must contact Acas early conciliation, which is free. Unfair dismissal normally needs 2 years' service, but discrimination and some other claims do not. Time limits for claims are now 6 months (from 1 October 2026) — act early.

7. Practical next steps

• Get everything in writing: your selection scores, redundancy pay calculation and leaving date.
• Check your eligibility for New Style Jobseeker's Allowance and Universal Credit straight away.
• Speak to your pension provider before moving or cashing in any pension.
• Ask for a reference and use any outplacement support your employer offers.
• Free, confidential help: Citizens Advice and the Acas helpline (0300 123 1100).

This guide is general information, not legal advice. Sources: GOV.UK, Acas, Employment Rights Act 2025. Figures checked October 2026; limits rise each April.