Redundancy rights: selection, consultation, notice and redundancy pay

Redundancy is a form of dismissal, and employees have specific rights when it happens. This guide explains what redundancy means in law, how employers should run the process, and how statutory redundancy pay is calculated. It is general information, not advice on your situation.

What is redundancy?

Under section 139 of the Employment Rights Act 1996 (opens in a new tab), redundancy broadly means a dismissal caused by the employer closing the business, closing the particular workplace, or needing fewer employees to do work of a particular kind. If your job is being cut because the work has reduced or disappeared, that is likely to be redundancy. If you are being dismissed for another reason, such as conduct, it is not.

Redundancy is one of the potentially fair reasons for dismissal. But a redundancy dismissal can still be unfair if the employer used an unfair selection process, failed to consult, or did not consider alternative work. Our unfair dismissal guide explains the general rules.

Fair selection

If only some people in a group are being made redundant, the employer should identify a fair "pool" of employees and use objective selection criteria. Acas guidance on redundancy (opens in a new tab) gives examples such as skills, qualifications, standard of work and disciplinary records.

Selection must not be based on discriminatory reasons, such as age, sex, race, disability or pregnancy, or on automatically unfair reasons, such as trade union membership or whistleblowing. Some employees on maternity, adoption or shared parental leave have special rights to be offered suitable alternative vacancies.

Individual consultation

Employers should consult individually with each employee at risk, explaining why redundancy is proposed, how people are being selected and what alternatives exist. You should have the opportunity to comment and suggest alternatives before a final decision is made.

Collective consultation

Where an employer proposes to dismiss 20 or more employees at one establishment within 90 days, collective consultation rules apply. Acas explains that consultation with trade union or elected employee representatives must start:

• at least 30 days before the first dismissal, for 20 to 99 redundancies
• at least 45 days before the first dismissal, for 100 or more redundancies

If an employer fails to consult properly, a tribunal can make a "protective award". Acas's guidance on the Employment Rights Act 2025 (opens in a new tab) confirms that the maximum protective award increased from 90 to 180 days' pay per affected employee on 6 April 2026. Further changes to how the collective consultation threshold is calculated are planned for 2027.

Suitable alternative employment

Your employer should consider whether there is suitable alternative work for you. If you accept an offer of a different job, you are usually entitled to a four-week trial period. If the job turns out to be unsuitable and you end your employment during the trial, you normally keep your right to redundancy pay.

If you unreasonably refuse an offer of suitable alternative employment, you may lose your right to statutory redundancy pay. Whether an offer was suitable and a refusal unreasonable depends on the circumstances, such as pay, hours, location and status.

Time off to look for work

An employee with two years' continuous employment who has been given notice of redundancy is entitled to reasonable time off during working hours to look for new work or arrange training.

Notice

You are entitled to the longer of your contractual notice and statutory notice. GOV.UK's guide to redundancy rights (opens in a new tab) explains that statutory notice is:

• at least one week if you have been employed between one month and two years
• one week for each full year of employment if you have been employed between two and twelve years
• twelve weeks if you have been employed for twelve years or more

Your employer may pay you in lieu of notice if your contract allows it, or by agreement.

Statutory redundancy pay

You are normally entitled to statutory redundancy pay if you are an employee with two years' continuous employment. According to GOV.UK's redundancy pay page (opens in a new tab), you get:

• half a week's pay for each full year you were under 22
• one week's pay for each full year you were 22 or older, but under 41
• one and a half week's pay for each full year you were 41 or older

Length of service is capped at 20 years. Your weekly pay is the average you earned per week over the 12 weeks before the day you got your redundancy notice. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory redundancy pay is £22,530. These limits usually change each April.

You can use GOV.UK's redundancy pay calculator (opens in a new tab) to work out the statutory figure. Your contract may entitle you to more, known as enhanced or contractual redundancy pay.

Tax

Statutory redundancy pay, and other qualifying termination payments, are generally tax-free up to £30,000. Notice pay and holiday pay are taxed as earnings. HMRC's rules on termination payments are detailed, so check your payslip and get advice if a large sum is involved.

If your employer will not pay

If your employer refuses to pay statutory redundancy pay, you can make a claim to an employment tribunal, normally after Acas early conciliation. GOV.UK says you have six months from the date your job ends to apply for statutory redundancy pay. Other claims, such as unfair dismissal, have their own time limits, which are explained in our unfair dismissal guide.

If your employer is insolvent, you may be able to claim statutory redundancy pay and some other money owed from the government's Redundancy Payments Service. GOV.UK explains how to claim if your employer is insolvent (opens in a new tab).

Settlement agreements

You may be offered a settlement agreement, often with an enhanced payment. For it to be binding on statutory claims, you must receive advice from a relevant independent adviser, such as a solicitor. Employers often contribute towards the cost of that advice.

Checklist

• Ask how the pool and selection criteria were chosen.
• Take part in consultation and suggest alternatives in writing.
• Ask about vacancies and trial periods.
• Check your notice, holiday pay and redundancy pay calculations.
• Note the deadlines and contact Acas early if there is a dispute.

Where to get help

Acas (opens in a new tab) offers free, impartial advice, and Citizens Advice and trade unions can help too. See our free legal help page for more options.

Sources

1. Employment Rights Act 1996 (opens in a new tab) (legislation.gov.uk)
2. Acas guidance on redundancy (opens in a new tab) (acas.org.uk)
3. Acas's guidance on the Employment Rights Act 2025 (opens in a new tab) (acas.org.uk)
4. redundancy rights (opens in a new tab) (gov.uk)
5. GOV.UK's redundancy pay page (opens in a new tab) (gov.uk)
6. redundancy pay calculator (opens in a new tab) (gov.uk)
7. claim if your employer is insolvent (opens in a new tab) (gov.uk)
8. Acas (opens in a new tab) (acas.org.uk)

Sources checked for the update dated 15 October 2026. Spotted an error? Tell us and read how we handle corrections.