UK Redundancy Rights Guide
Understand your legal rights if you are facing redundancy. Learn about statutory pay, consultation periods, and fair selection processes to protect your future.
Navigating Your Redundancy Rights
Facing redundancy can be stressful. Whether you are an employee seeking clarity or an employer ensuring compliance, understanding these four core areas is crucial for a fair and lawful process.
What is Genuine Redundancy?
Redundancy is a form of dismissal that occurs when an employer needs to reduce their workforce. Genuine reasons include the business closing down, the specific workplace closing, or a reduced need for employees to carry out work of a particular kind.
The Consultation Process
Employers must consult with affected employees before making final decisions. For 1-19 redundancies, this is an individual consultation. For 20 or more redundancies within 90 days, a formal ‘collective consultation’ period is legally required (30 or 45 days depending on the number of roles).
Statutory Redundancy Pay (SRP)
Employees with at least 2 years of continuous service are legally entitled to Statutory Redundancy Pay. The amount is calculated based on age, length of service (up to 20 years), and weekly pay (subject to a government cap). Some employers offer enhanced contractual redundancy pay.
Notice Periods & Time Off
You are entitled to a statutory notice period (1 week per year of service, up to 12 weeks). Additionally, if you have 2+ years of service, you have the right to reasonable paid time off during your notice period to look for new work or arrange training.
Your Rights Checklist
Essential checks to ensure a fair process
Understanding Statutory Redundancy Pay
The UK government sets a clear formula for calculating the minimum redundancy pay an eligible employee must receive.
| Employee Age | Weeks’ Pay per Year of Service | Key Conditions |
|---|---|---|
| Under 22 | 0.5 week’s pay | For each full year of employment while under 22. |
| 22 to 40 | 1 week’s pay | For each full year of employment between ages 22 and 40. |
| 41 and older | 1.5 weeks’ pay | For each full year of employment aged 41 or over. |
| Maximum Limits | Max 20 years of service | Weekly pay is capped at a statutory maximum (reviewed annually each April). |
Redundancy Rights FAQ
Answers to the most frequently asked questions about employment rights and redundancy procedures in the UK.
Statutory Redundancy Pay (SRP) is based on your age, length of continuous service (up to a maximum of 20 years), and your weekly pay (subject to a statutory cap). Employees under 22 get half a week’s pay per year, those aged 22-40 get one week’s pay per year, and those 41 and over get 1.5 weeks’ pay per year.
Yes, you can be made redundant while on maternity, adoption, or sick leave. However, the reason for redundancy must be genuine and unrelated to your leave. If you are selected for redundancy because of your pregnancy or maternity leave, this constitutes automatic unfair dismissal and pregnancy discrimination.
A selection process is unfair if it is based on discriminatory factors (like age, gender, or pregnancy), if it targets union representatives, or if the employer uses vague, unmeasurable criteria without proper consultation or scoring. ‘Last in, first out’ (LIFO) can also be risky if it indirectly discriminates against a protected group.
You are not legally forced to accept an alternative role. However, if your employer offers a suitable alternative role and you unreasonably refuse it, you may lose your right to statutory redundancy pay. You have a statutory 4-week trial period in a new role to see if it is suitable.