Being told your job is at risk is stressful, and it is easy to miss steps that protect you. Redundancy has a legal meaning: it happens when an employer needs to reduce the workforce, for example because a role is no longer needed, a site is closing or the business is changing. This guide explains the main rules for employees in Great Britain. Northern Ireland has its own rules in places, so check the right official source for where you work.

What counts as a genuine redundancy

Redundancy is about the job, not the person. If your role disappears, that can be a redundancy. If an employer simply dislikes your performance, it should use a different process. An employer must also not use redundancy as a cover for discrimination, for example selecting someone because they are pregnant, on maternity leave, or have raised a complaint.

Consultation

A fair process normally includes consultation. That means the employer explains why jobs are at risk, discusses ways to avoid redundancies and listens to your suggestions before decisions are final. Where an employer proposes to make 20 or more redundancies at one establishment within 90 days, there are extra collective consultation duties with elected representatives or a trade union, and minimum consultation periods apply. The details are on the GOV.UK redundancy pages linked below.

Selection

If only some people in a group will lose their jobs, the employer should use fair, objective selection criteria, such as skills, qualifications or disciplinary record. Criteria should be applied consistently and you can ask to see how you were scored. Ask for the scoring in writing and check it for mistakes.

Notice

You are entitled to your notice period, which is the longer of your contractual notice and the statutory minimum. The statutory minimum depends on how long you have worked for the employer. Some employers pay in lieu of notice, which means paying you instead of having you work it. Check your contract to see whether this is allowed.

Statutory redundancy pay

Employees with at least two years of continuous service are usually entitled to statutory redundancy pay. The amount depends on your age, your weekly pay (which is subject to a cap that changes over time) and your length of service. Employers can pay more than the statutory minimum, and many contracts or staff handbooks include an enhanced scheme. Use the official redundancy calculator on GOV.UK to estimate what you should receive, and ask your employer to show their working.

Time off to look for work

If you have worked for your employer for at least two years, you can ask for a reasonable amount of paid time off to look for a new job or arrange training during your notice period. Put the request in writing and keep a copy.

Suitable alternative work

An employer must consider offering you any suitable alternative vacancy. If you are offered a different job, you may be entitled to a four-week trial period to see whether it suits you. If you reject a suitable alternative without good reason, you can lose the right to redundancy pay, so get advice before you decide.

Special protection

Employees on maternity leave, adoption leave or shared parental leave have additional rights if their role is at risk. In many cases they must be offered any suitable alternative vacancy ahead of others. If this applies to you, read the official guidance and seek advice early.

If you think it was unfair

You may be able to bring a claim to an employment tribunal, but strict time limits apply. You normally need to contact Acas for early conciliation first, and the claim must generally be made within three months less one day of the end of your employment, with the Acas period counted in a specific way. Do not wait. Free advice is available from Acas, Citizens Advice and, if you are a member, your trade union.

Practical steps now

  • Ask for everything in writing, including the reason for redundancy and the selection criteria.
  • Keep a record of meetings, with dates and who attended.
  • Check your contract and handbook for enhanced redundancy pay.
  • Update your CV and register with job boards while you work your notice.
  • Check what benefits you could claim if you are out of work.

Sources

This article is general information, not legal advice. Rules change, so check the linked pages for current figures.

Our editorial promise

We write for jobseekers, check important claims and link to official sources where rules may change.