Understanding Your Redundancy Rights in the UK

Your employer has just told you that your role is at risk of redundancy. This is one of the most stressful situations in working life, and it is natural to feel anxious about what comes next. This guide explains your legal rights so you can make informed decisions.

Calculate your entitlement now: Use our free redundancy pay calculator to get your exact statutory figure in 90 seconds.

What is redundancy?

Redundancy occurs when your employer needs to reduce their workforce. Under the Employment Rights Act 1996, a genuine redundancy exists when:

• The business is closing or moving
• The workplace is closing or relocating
• The need for employees to do work of a particular kind has diminished

Your employer must demonstrate that a genuine redundancy situation exists. If the real reason for your dismissal is something else (poor performance, personality clashes), calling it redundancy does not make it lawful.

Your right to statutory redundancy pay

If you have been continuously employed for 2 years or more, you have a statutory right to redundancy pay. The amount depends on your age, length of service, and weekly pay.

The current statutory formula (2024/25):

• Under 22: 0.5 weeks’ pay per year of service
• 22 to 40: 1 week’s pay per year of service
• 41 and over: 1.5 weeks’ pay per year of service

Weekly pay is capped at £700. Maximum years counted is 20. The maximum statutory redundancy payment is £21,000.

Calculate your exact figure →

The redundancy process

Your employer must follow a fair process. While the exact steps vary, a fair process typically includes:

1. Identification of the pool — which roles are at risk
2. Selection criteria — objective, measurable criteria for choosing who goes
3. Consultation — genuine discussion about alternatives and the process
4. Consideration of alternatives — whether suitable alternative employment exists
5. Notice — your statutory or contractual notice period

If your employer skips these steps, the redundancy may be unfair even if the underlying reason is genuine.

When redundancy is unfair

A redundancy can be unfair if:

• The selection criteria are subjective or discriminatory
• You were not consulted individually
• Your employer did not consider suitable alternative roles
• The redundancy is a cover for discrimination (pregnancy, disability, whistleblowing)
• The process was pre-determined before consultation began

If you believe your redundancy was unfair, you have 3 months less 1 day from your last day of employment to contact ACAS and begin early conciliation. Missing this deadline means losing your right to bring a tribunal claim.

Settlement agreements during redundancy

Your employer may offer a settlement agreement alongside or instead of the redundancy process. This is a legally binding agreement where you waive your right to bring tribunal claims in exchange for a payment.

Settlement offers during redundancy are common and often result in payments above the statutory minimum. Factors that influence the amount include:

• The strength of any potential unfair dismissal claim
• Your length of service and seniority
• Whether the employer followed a fair process
• The employer’s desire to avoid tribunal proceedings

You are entitled to independent legal advice on any settlement agreement — your employer must contribute to the cost.

Check if your settlement offer is fair →

Next steps

1. Calculate your statutory entitlement using our redundancy pay calculator
2. Review the process — was it fair? Were you consulted? Were the criteria objective?
3. Consider your options — accept the offer, negotiate, or seek legal advice
4. Watch the deadline — 3 months less 1 day to bring a tribunal claim

If the amounts involved are significant or you suspect the process was unfair, speaking to an employment solicitor is often worthwhile. Many offer free initial consultations.