Redundancy Rights: What Are You Entitled To?

Redundancy occurs when a role is no longer required — because a business is closing, relocating, or restructuring. It is distinct from dismissal for conduct or capability. If you are made redundant, you have important rights that your employer must respect — and if they do not, you may have grounds for an unfair dismissal or discrimination claim.

Statutory redundancy pay

If you have been continuously employed for two or more years, you are entitled to statutory redundancy pay calculated as follows: half a week’s pay for each full year worked under age 22; one week’s pay for each year worked between 22 and 40; one and a half week’s pay for each year worked aged 41 or over. The calculation is capped at a maximum of 20 years’ service and a maximum weekly pay of £643 (2024/25 figure). Your contract may entitle you to enhanced redundancy pay above this statutory minimum.

The right to be consulted

Your employer must consult with you individually before confirming your redundancy. This is not a formality — it must be a genuine two-way process where you have the opportunity to propose alternatives and raise concerns. If 20 or more employees are being made redundant within 90 days, collective consultation with employee representatives must also take place, with minimum periods of 30 or 45 days depending on numbers.

Fair selection

If your employer is selecting from a pool of employees for redundancy, the selection criteria must be fair, objective, and consistently applied. Using criteria such as age, pregnancy, disability, trade union membership, or having asserted a statutory right would make the redundancy automatically unfair. Criteria such as attendance records, skills, and performance are generally acceptable provided they are applied consistently.

Suitable alternative employment

Before confirming your redundancy, your employer must consider whether there are any suitable alternative roles available — within the company or within any associated companies. If a suitable role exists and your employer fails to offer it to you, the redundancy may be unfair. If you are offered a suitable alternative and unreasonably refuse it, you may lose your right to statutory redundancy pay.

What if the redundancy was not genuine?

A redundancy is not genuine if the role continues to exist under a different name or is filled by someone else shortly after you leave. Using redundancy as a pretext to dismiss someone for another reason — such as raising a grievance or taking maternity leave — constitutes unfair dismissal and, in some cases, automatic unfair dismissal. If you suspect this, keep any evidence and seek legal advice promptly.