What Is Redundancy?

Redundancy is a specific reason for dismissal that occurs when an employer needs fewer employees — because the business is closing, relocating, or because the type of work you do is diminishing or ceasing. Being made redundant is not the same as being dismissed for misconduct.

Statutory Redundancy Pay

If you have been employed for at least 2 years, you are entitled to statutory redundancy pay calculated as: 1.5 weeks' pay per year worked aged 41+; 1 week's pay per year worked aged 22–40; and 0.5 weeks' pay per year worked aged 18–21. Weekly pay is capped at £643 (2024–25). Maximum is 20 years of service.

Enhanced Pay

Your contract may entitle you to enhanced redundancy pay above the statutory minimum. Always check your contract and employee handbook carefully before accepting any settlement.

The Consultation Requirement

Your employer must consult with you individually before making you redundant — even in small-scale redundancies. For 20 or more redundancies within 90 days, collective consultation rules apply and minimum notice periods of 30–45 days must be observed. Failure to consult properly is grounds for an unfair dismissal claim.

Challenging Your Selection

Your employer must use fair, objective selection criteria when choosing who to make redundant. Criteria must be capable of being applied consistently and evidenced. Selection based on protected characteristics (such as age, disability, or pregnancy) is automatically unfair and may constitute discrimination.

Right to Appeal

You have the right to appeal against your redundancy. If your employer does not offer an appeal, this is a breach of the ACAS Code of Practice and can increase any tribunal award.

Notice Period and Payment in Lieu

You are entitled to your contractual or statutory notice period (whichever is greater). Statutory notice is 1 week per year of employment (up to 12 weeks). Your employer can pay you in lieu of notice (PILON) if your contract allows, meaning you leave immediately but receive the notice pay.

What to Do If Your Redundancy Is Unfair

If you believe the redundancy was not genuine, the selection was unfair, or the process was flawed, you may have a claim for unfair dismissal or discrimination. Contact an employment solicitor as quickly as possible — you have 3 months less one day from the date of dismissal to start the ACAS conciliation process.