Skip to main content
United Kingdom💼 Employment Rights

Redundancy Pay and Procedures in the UK — Employee Rights Guide

Understand your redundancy pay and procedure rights in the UK. Learn what you're owed, how the process should work, and what to do if your employer gets it wrong.

Last verified: April 2026

Redundancy occurs when your employer needs to reduce their workforce, close a workplace, or eliminate a particular type of job. If you are made redundant in the UK, you have important legal rights — including the right to fair procedures, advance notice, and statutory redundancy pay. Understanding these rights can help you ensure you receive everything you are legally entitled to.

⚖️ Your Key Rights

  • If you have worked for your employer for at least 2 continuous years, you have the right to statutory redundancy pay calculated based on your age, weekly pay, and length of service.
  • You have the right to a fair selection process — your employer cannot choose you for redundancy based on discriminatory reasons such as pregnancy, disability, race, age, or whistleblowing.
  • You have the right to a minimum notice period before your employment ends: at least 1 week's notice for each full year of service (up to a maximum of 12 weeks), or whatever is stated in your contract if that is longer.
  • If 20 or more employees are being made redundant within 90 days at one establishment, your employer must collectively consult with employee representatives for a minimum of 30 days (45 days if 100 or more are affected) before any dismissals take effect.
  • You have the right to be individually consulted — your employer must meet with you, explain the reason for redundancy, consider alternatives such as redeployment, and allow you to respond before a final decision is made.
  • If a suitable alternative role exists within the business, your employer must offer it to you. You have the right to a 4-week trial period in any alternative role before deciding whether to accept it.
  • You have the right to appeal your redundancy if you believe the selection was unfair or proper procedures were not followed, and you may bring a claim to an Employment Tribunal if your rights are breached.

📋 Common Situations Explained

Being made redundant with less than 2 years' service

If you have worked for your employer for fewer than 2 continuous years, you are not entitled to statutory redundancy pay. However, you still have the right to proper notice and to not be selected on discriminatory grounds. Check your employment contract, as some employers offer enhanced redundancy terms that apply from day one.

Employer fails to follow a fair consultation process

If your employer skips individual consultation meetings, fails to consider alternatives to redundancy, or announces your redundancy as a done deal without prior discussion, the dismissal may be procedurally unfair. If you have at least 2 years of service, you may be able to claim unfair dismissal at an Employment Tribunal.

Being selected for redundancy while pregnant or on maternity leave

Selecting an employee for redundancy because they are pregnant or on maternity leave is automatically unfair dismissal and sex discrimination. Employees on maternity leave also have an enhanced right to be offered suitable alternative vacancies before other at-risk employees. This protection also applies to those on adoption or shared parental leave.

Employer offers a settlement agreement (compromise agreement)

Your employer may offer you a settlement agreement in exchange for you waiving your right to bring Employment Tribunal claims. Before signing, you are legally required to receive independent legal advice, which your employer will typically pay for. Do not feel pressured to sign quickly — you have the right to consider the offer carefully.

Dispute over the amount of redundancy pay

Statutory redundancy pay is calculated using a set government formula based on your age, weekly gross pay (capped at £643 per week as of April 2024), and years of service. If your employer refuses to pay or underpays you, you can apply to an Employment Tribunal or, if your employer is insolvent, claim directly from the Redundancy Payments Service through the government.

🚀 What To Do

  1. 1Check your employment contract and staff handbook to understand what notice period and redundancy pay your employer has promised — some employers offer more than the legal minimum.
  2. 2Request a written explanation of the redundancy reason and selection criteria from your employer, and attend all consultation meetings — bring notes or a colleague for support if permitted.
  3. 3Ask your employer about any suitable alternative roles in the organisation and request details in writing; do not miss the opportunity to trial an alternative position if one is offered.
  4. 4Calculate your statutory redundancy pay using the government's online redundancy pay calculator on GOV.UK to verify that the amount your employer offers is correct.
  5. 5If you believe the process was unfair, the selection was discriminatory, or you have been underpaid, raise a formal grievance with your employer first and keep records of all communications.
  6. 6If the issue is not resolved internally, contact ACAS for free early conciliation before making a claim to an Employment Tribunal — you must generally bring a claim within 3 months minus 1 day of your dismissal date.

👨‍⚖️ When to Get a Lawyer

You should seek legal advice if you suspect you have been selected for redundancy for a discriminatory reason, if your employer has not followed proper procedures and you want to claim unfair dismissal, or if a settlement agreement has been offered. An employment solicitor or a Citizens Advice Bureau adviser can help you understand whether your rights have been breached and what compensation you may be entitled to.

🔗 Official Resources

Have a specific question?

Describe your exact situation and get a personalised answer — free.

Ask Rightify →

This guide provides general legal information only, not legal advice. Laws may change — always verify with official sources or a qualified lawyer.