Employment Law – Redundancy

What is Redundancy?

Redundancy is a particular legal form of dismissal.

Broadly, a redundancy situation can arise where your dismissal is wholly or mainly attributable to the fact that your employer:

• Has ceased or intends to cease carrying on the business for which you were employed
• Has ceased or intends to cease carrying on that business at the place where you were employed
• No longer requires as many employees to carry out work of a particular kind
• No longer requires as many employees to carry out work of a particular kind at the place where you were employed

The legal definition is contained in the Employment Rights Act 1996.

Whether there is a genuine redundancy situation depends on what has happened to the employer's requirement for employees to carry out the relevant work.

What Does Redundancy Mean in Plain English?

In practical terms, redundancy usually means that your employer no longer needs your job, or no longer needs as many people to perform the type of work you do.

The work itself does not necessarily have to disappear completely.

For example, a redundancy situation can arise where:

• Work has reduced
• A department closes
• A workplace closes
• Work is moved elsewhere
• Technology reduces the number of employees required
• Work is outsourced
• Several jobs are combined
• Fewer employees are needed to perform the same amount of work

For example, if five employees currently perform a particular role but the employer restructures the business so that only three employees are required, there can be a genuine redundancy situation even though the work itself continues.

What Are Some Common Genuine Redundancy Situations?

Examples can include circumstances where:

• A Business closes completely
• A Particular workplace closes
• A Department is removed
• Demand for particular work falls
• Technology removes the need for certain roles
• Work is outsourced
• Several jobs are consolidated
• Fewer employees are needed after a restructure
• Particular work moves to another location

A genuine redundancy situation does not, however, automatically mean that every resulting dismissal will be fair.

Your employer should still follow a fair redundancy procedure.

This normally involves issues such as:

• Consultation
• Selection pools
• Selection criteria
• Scoring
• Suitable alternative employment
• Notice
• Redundancy pay

A genuine redundancy dismissal can still potentially be unfair if the procedure or selection process was unreasonable.

For further guidance, see Unfair Dismissal.

What Might Suggest That a Redundancy is Not Genuine?

Sometimes an employer describes a dismissal as redundancy when the real issue may be something different.

Circumstances that may justify closer examination include:

• Your employer recruits someone to perform substantially the same job
• Your role is immediately recreated under a different title
• Performance complaints suddenly become a redundancy exercise
• You are unexpectedly singled out without an obvious business reason
• Your relationship with your manager has seriously deteriorated
• Your duties continue substantially unchanged with a replacement employee
• There is evidence that discrimination influenced the decision
• The redundancy explanation changes during the process

None of these points automatically proves that redundancy is a sham.

For example, an employer may legitimately recruit people with different skills while reducing another area of its workforce.

The question is whether there has genuinely been a reduction or cessation in the employer's requirement for employees to carry out work of the relevant kind.

If the real reason for dismissal was misconduct, poor performance or another personal reason, describing the dismissal as redundancy will not necessarily make it a genuine redundancy.

For further guidance, see Poor Performance and Performance Improvement Plans and Dismissal and Disciplinary Process.

Different Redundancy Situations in More Detail

The Need for Particular Work Has Reduced or Ceased

A business can continue operating while its need for a particular type of work reduces or disappears.

For example, a business may decide that it no longer requires a separate regional sales team because it is withdrawing from that geographical market.

Alternatively, an employer may reorganise how work is performed so that fewer employees are required.

The important issue is usually the employer's requirement for employees to carry out work of a particular kind.

It is therefore possible for the work itself to continue while the number of employees needed to perform it decreases.

New Technology or Systems Are Introduced

New technology can create a redundancy situation where it reduces the employer's requirement for employees to carry out particular work.

For example, an automated system might mean that work previously completed by several employees can now be completed by one employee.

However, introducing new technology does not automatically create redundancy.

If substantially the same number of employees are still required and only the method of performing the job changes, the issue may instead concern:

• Retraining
• Changes to duties
• Contractual variation
• Capability

An employer should consider whether existing employees can reasonably be trained to perform the changed roles before deciding that dismissal is necessary.

What if My Duties Are Given to Other Employees?

Your role can still be redundant even where some or all of your duties continue.

For example, an employer might decide that there is no longer a need for a standalone position and distribute those duties among several remaining employees.

The fact that somebody still performs the tasks does not necessarily mean that your job remains.

The relevant question is whether the employer's requirement for employees to perform work of that particular kind has reduced.

However, the dismissal could still be unfair if:

• You were selected unfairly
• The selection pool was unreasonable
• Consultation was inadequate
• Suitable alternatives were ignored

What if the Workplace Closes?

A workplace closure is a common redundancy situation.

This could involve:

• An Entire business closing
• One office closing
• One shop closing
• One factory closing
• A Department or business unit closing

If the employer no longer intends to carry on the business at the place where you were employed, a redundancy situation may arise.

The employer should still consider matters such as:

• Alternative sites
• Suitable alternative roles
• Mobility clauses
• Remote working where relevant

What if the Business Moves to Another Location?

A relocation can potentially create a redundancy situation where the employer stops carrying on the relevant business at the place where you were employed.

Whether you are actually entitled to redundancy pay may also depend on:

• Your employment contract
• Any mobility clause
• Distance to the new workplace
• Travel time
• Travel costs
• Your personal circumstances
• Whether alternative employment is suitable

The existence of a mobility clause does not automatically resolve every redundancy issue.

Its wording and the reasonableness of the employer's proposed move will need to be considered.

What Happens if the Business Transfers to Another Employer?

A business transfer is not, by itself, normally a redundancy.

Where the Transfer of Undertakings (Protection of Employment) Regulations apply, commonly known as TUPE, employees assigned to the transferring business generally move automatically to the new employer with their continuity of employment preserved.

Their existing employment terms also generally transfer, subject to the TUPE rules.

An employer should therefore not make employees redundant simply because the business is being transferred.

Transfer-related redundancies require particular care.

After a TUPE transfer, a transfer-related redundancy will generally require:

• A Genuine redundancy situation
• An Economic, technical or organisational reason involving changes in the workforce

A dismissal where the sole or principal reason is the transfer itself can be automatically unfair unless the relevant statutory exception applies.

For further guidance, see TUPE.

Redundancy Process – An Overview

A fair redundancy process will normally involve several stages.

The precise procedure will depend on the size and circumstances of the organisation.

Broadly, your employer should:

• Establish whether redundancies are genuinely necessary
• Consider ways of avoiding or reducing redundancies
• Identify employees who may be affected
• Decide appropriate selection pools
• Establish fair selection criteria
• Inform affected employees
• Carry out meaningful consultation
• Apply the selection criteria fairly
• Consider representations made during consultation
• Search for suitable alternative employment
• Make a final decision only after consultation
• Provide proper notice
• Calculate redundancy and termination payments
• Consider offering an appeal

Your employer should not decide who will definitely be dismissed before consultation has genuinely taken place.

What Does Being "At Risk of Redundancy" Mean?

If you are told that you are at risk of redundancy, this should normally mean that redundancy is being proposed or considered but that a final decision has not yet been made.

Your employer should usually explain:

• Why redundancy is being considered
• Which roles are affected
• How selection will take place
• How consultation will work
• What alternatives are being considered

Being placed at risk is not the same as receiving notice of dismissal.

Consultation should remain meaningful and the employer should remain open to proposals that could avoid or reduce redundancy.

Can My Employer Remove Me From the Workplace While I Am Only At Risk?

Being placed at risk of redundancy does not automatically give an employer a reason to suspend or exclude you from work.

There may occasionally be legitimate reasons for restricting access to:

• Confidential information
• Systems
• Sensitive commercial material
• Particular customers

However, such action should be properly justified and should not suggest that the final redundancy decision has already been made.

Once formal notice has been given, different arrangements may apply, including garden leave where the contract permits it.

Selection Criteria

Where an employer needs to select some employees for redundancy while retaining others, it should use fair and reasonable selection criteria.

Common criteria can include:

• Skills
• Qualifications
• Experience
• Performance
• Aptitude
• Attendance
• Disciplinary record

The criteria should, as far as reasonably possible, be:

• Objective
• Measurable
• Relevant
• Consistently applied
• Supported by evidence

For example, where performance is used, an employer should ideally be able to refer to reliable records such as:

• Appraisals
• Sales figures
• Performance data
• Previous reviews

A manager should not simply give an employee a low score because they personally prefer another employee.

Can Attendance Be Used as a Selection Criterion?

Potentially, yes, but the employer must take care.

Attendance records should be accurate and certain absences may need to be excluded or treated differently.

For example, legal problems can arise if an employer disadvantages an employee because of absence connected with:

• Pregnancy
• Maternity
• Disability
• Certain family-related rights
• Trade union duties
• Other protected statutory rights

The employer should therefore understand the reasons for absence before using attendance as a redundancy criterion.

Can "Last In, First Out" Be Used?

Length of service can sometimes form part of a selection process.

However, relying on last in, first out as the only or dominant criterion can create age discrimination risks because younger employees may be disproportionately disadvantaged.

An employer would need to be able to justify indirectly discriminatory criteria.

Length of service may sometimes be used as:

• One factor among several
• A Tie-break criterion

provided the approach is lawful and objectively justified where required.

For further guidance, see Age Discrimination.

Can Redundancy Selection Be Discriminatory?

No.

An employer must not select you for redundancy because of a protected characteristic such as:

• Age
• Disability
• Gender reassignment
• Marriage or civil partnership
• Pregnancy and maternity
• Race
• Religion or belief
• Sex
• Sexual orientation

Selection can also be automatically unfair where it is because you exercised certain statutory rights.

Examples can include matters connected with:

• Family leave
• Whistleblowing
• Health and safety
• Trade union activities
• Working time rights
• National Minimum Wage rights

Discrimination claims do not require the ordinary minimum qualifying service applicable to most unfair dismissal claims.

For further guidance, see Discrimination.

Selection Pool

The selection pool is the group of employees from which the employer will select employees for redundancy.

The employer should genuinely consider who belongs in the pool.

There is no universal rule requiring every redundancy to involve a large selection pool.

For example, a pool may not be necessary where:

• The entire business is closing
• An entire distinct function is disappearing
• There is genuinely only one employee performing a unique role

However, a pool of one should not simply be chosen to predetermine the outcome.

Where other employees perform the same, similar or interchangeable work, the employer should consider whether they should also be included.

Which Employees Should Be Included in the Pool?

Relevant considerations can include whether employees:

• Carry out the same work
• Carry out similar work
• Have interchangeable skills
• Have previously covered each other's duties
• Work on similar projects
• Work on different shifts performing similar roles
• Work at nearby sites performing similar functions

Job titles are not necessarily decisive.

Two employees with different titles may perform sufficiently similar work to justify inclusion in the same pool.

Equally, employees with similar titles may perform materially different jobs.

The employer should consider the actual work being performed.

Can Employees at Different Sites Be Included?

Potentially.

If employees at different locations perform similar or interchangeable work, the employer should consider whether the pool should extend beyond one site.

Relevant factors can include:

• Distance between sites
• Contractual mobility
• Interchangeability
• Previous transfers between locations
• How the business is organised

There is no automatic rule that all similar employees at every site must always be included.

The employer must make a reasonable decision after genuinely considering the appropriate pool.

Can Senior and Junior Employees Be in the Same Pool?

Potentially.

Seniority alone does not determine the selection pool.

Where the work is sufficiently similar or interchangeable, the employer may need to consider whether senior and more junior employees should be pooled together.

However, significant differences in:

• Responsibility
• Skills
• Pay
• Qualifications
• Management duties

may reasonably support separate pools.

What About Contractors and Agency Workers?

Statutory redundancy rights generally depend on having employee status.

A genuinely self-employed contractor or agency worker who is not legally an employee will not normally be included in the same way as employees when determining statutory redundancy rights.

However, employers considering redundancies should still consider reasonable alternatives to dismissal.

For example, it may be relevant to ask why permanent employees are being dismissed while external workers continue carrying out similar work.

There may be legitimate reasons for retaining contractors or agency workers, including:

• Specialist skills
• Short-term projects
• Temporary requirements

Their continued use does not automatically make employee redundancies unfair, but it can be relevant to whether alternatives were properly considered.

Redundancy Scoring

An employer may use a selection matrix to score employees against its chosen criteria.

For example, scores might be given for:

• Skills
• Performance
• Qualifications
• Attendance
• Disciplinary history

The scoring system should be applied consistently.

Where possible, scores should be based on reliable evidence rather than unsupported personal opinion.

For example, a performance score may be supported by:

• Appraisals
• Objective targets
• Sales records
• Quality assessments

The employer does not necessarily have to prove that every score was mathematically perfect.

However, an obviously manipulated, inconsistent or discriminatory scoring process may contribute to an unfair dismissal or discrimination claim.

You should normally be given sufficient information during consultation to understand why you have been selected and to challenge material inaccuracies.

Consultation

Meaningful consultation is a fundamental part of a fair redundancy procedure.

Your employer should consult affected employees while the proposals are still capable of being changed.

Consultation should normally cover matters such as:

• Reasons for the proposed redundancies
• Ways of avoiding redundancies
• Ways of reducing the number of dismissals
• Selection pools
• Selection criteria
• Your provisional selection
• Your scoring where appropriate
• Suitable alternative employment

You should have a genuine opportunity to make representations.

Your employer should properly consider those representations before making a final decision.

Do I Have a Right to an Individual Consultation Meeting?

In an ordinary individual redundancy process, meaningful consultation will normally involve at least one private meeting with you.

More than one meeting may be appropriate depending on the complexity of the case.

There is no fixed statutory minimum consultation period where fewer than 20 redundancies are proposed.

However, consultation must still be genuine and take place before the final decision.

Can I Be Accompanied at a Redundancy Consultation Meeting?

There is no general statutory right to be accompanied at an ordinary individual redundancy consultation meeting.

However:

• Your employer's policy may provide a right
• A collective agreement may provide a right
• Your employer may agree to a companion
• A companion may be required as a reasonable adjustment in appropriate circumstances

Acas encourages employers to approach such requests reasonably.

Collective Redundancies

As at 10 September 2026, statutory collective consultation requirements generally arise where an employer proposes to dismiss 20 or more employees as redundant at one establishment within a period of 90 days or less.

The employer must consult appropriate employee representatives.

These will normally be:

• Recognised trade union representatives
• Elected employee representatives where there is no recognised union

Collective consultation is additional to appropriate individual consultation.

For further guidance, see Collective Redundancies.

How Long Must Collective Consultation Last?

There is no requirement that consultation itself must continue for a fixed number of days.

However, collective consultation must begin sufficiently early and at least:

• 30 days before the first dismissal takes effect where 20 to 99 redundancies are proposed
• 45 days before the first dismissal takes effect where 100 or more redundancies are proposed

Consultation must be genuine and undertaken with a view to reaching agreement.

What Happens if Collective Consultation Rules Are Breached?

Affected employees or representatives may potentially claim a protective award.

From 6 April 2026, the maximum protective award for failure to comply with collective redundancy consultation requirements is 180 days' pay for each affected employee.

Employees do not need two years' service to qualify for a protective award.

Are the Collective Redundancy Rules Changing Again?

Yes, but the further change is not yet the current rule as at 10 September 2026.

The Employment Rights Act 2025 provides for an additional future organisation-wide trigger for collective consultation.

The intention is that employers will also have to consider the total number of redundancies proposed across more than one establishment.

The new organisation-wide threshold is expected to take effect in 2027.

However, the precise threshold was still subject to secondary legislation following consultation and should not yet be treated as the current test.

The existing 20 employees at one establishment within 90 days rule therefore remains relevant in September 2026.

Suitable Alternative Employment

An employer considering redundancy should search for suitable alternative employment within the organisation.

If a suitable alternative vacancy exists, the employer should generally offer it to an employee at risk of redundancy.

Whether a role is suitable depends on factors including:

• Pay
• Benefits
• Status
• Duties
• Hours
• Location
• Working environment
• Your skills
• Your experience
• Your personal circumstances

The alternative role does not need to be identical to your existing job.

For example, a lower-paid or more junior position may still be worth discussing with you.

Your employer should not automatically assume that you would refuse a role because it involves:

• Lower status
• Lower salary
• Different hours
• Another location

You should normally be given enough information to make an informed decision.

Does My Employer Have to Offer a Suitable Alternative Role or Can It Make Me Apply?

Where there is a genuinely suitable alternative vacancy, Acas guidance states that an employee selected for redundancy should generally be offered the role rather than simply being required to apply for it.

The position can be different where a restructuring involves:

• Several employees competing for fewer continuing roles
• New roles materially different from the old roles
• More potentially suitable employees than available vacancies

In those circumstances, a fair competitive selection or interview process may sometimes be appropriate.

Special priority rules also apply to employees with statutory redundancy protection connected with pregnancy and certain forms of family leave.

When Must the Alternative Job Be Offered?

A statutory suitable alternative employment offer should normally:

• Be made before your existing employment ends
• Contain enough information for you to understand the new role
• Start no later than 4 weeks after the old employment ends

Current Acas guidance states that the offer should be made in writing.

Do You Have a Right to a 4-Week Trial Period?

Yes.

Where you accept alternative employment in a redundancy situation, you will normally have a statutory 4-week trial period.

The purpose is to allow both you and your employer to decide whether the new role is suitable.

The trial normally starts after your previous contract has ended.

If additional training is required, the trial period can be extended by written agreement.

The written agreement should specify the extended period and when it ends.

What if You Are Offered More Than One Alternative Role?

Where several possible roles are available, different alternatives can be considered.

Acas guidance recognises that an employee may potentially try more than one suitable alternative role, with the statutory trial rules applying to each appropriate offer.

The arrangements and dates should be recorded clearly.

What if You Refuse Suitable Alternative Employment?

You can refuse an alternative role if you reasonably consider it unsuitable.

Reasons may include:

• Lower pay
• Significantly different duties
• Health concerns
• Excessive travel
• Additional travel costs
• Incompatible working hours
• Serious disruption to family responsibilities

Suitability involves both:

• An Objective assessment of the role
• Your Individual circumstances when deciding whether refusal was reasonable

If an employer establishes that suitable alternative employment was offered and that you unreasonably refused it, you can lose your right to statutory redundancy pay.

You should therefore explain your reasons for refusal clearly, preferably in writing.

Can I Lose Redundancy Pay During the Trial Period?

Potentially.

If you decide that the new role is unsuitable, you should normally tell your employer during the trial period.

If you continue in the new role beyond the statutory trial period without an agreed extension, you may lose your statutory redundancy entitlement.

The position can become complicated where there is disagreement about whether the role was suitable or your refusal was reasonable.

Applying for Your Own Job

Can an Employer Make Me Interview for My Own Job?

Potentially.

During a restructure, an employer may decide that fewer positions are required and use a competitive process to determine which employees will fill the remaining roles.

For example, six existing roles may be replaced with four newly structured positions.

An interview or assessment process can form part of a fair selection procedure.

However, it should be:

• Genuine
• Objective
• Consistently applied
• Relevant to the new roles
• Free from discrimination

The employer should consult affected employees about the proposed process.

Do I Risk Losing Redundancy Pay if I Refuse to Apply?

The position is not as simple as saying that refusing to apply automatically removes your statutory redundancy entitlement.

A distinction should be made between:

• Declining to participate in a competitive restructuring process
• Unreasonably refusing a specific offer of suitable alternative employment

An unreasonable refusal of an actual suitable alternative offer can result in loss of statutory redundancy pay.

Whether failing to participate in a particular selection process has the same effect will depend on the facts and the nature of the roles.

You should therefore clarify in writing what will happen to your redundancy entitlement before deciding not to participate.

You may also participate under protest while maintaining that the process or proposed redundancy is unfair.

What if I Apply for My Own Job and Am Unsuccessful?

If you participate in the selection process and are unsuccessful, your dismissal may still be by reason of redundancy.

You should therefore generally receive statutory redundancy pay if you:

• Have the necessary qualifying service
• Meet the statutory conditions
• Have not unreasonably refused suitable alternative employment

The fairness of the selection process can still be challenged separately where appropriate.

What is Bumping?

Bumping is where an employee whose own job is redundant moves into another employee's job and the other employee is then dismissed by reason of redundancy.

For example, a senior employee whose role disappears might move into a more junior role, resulting in the junior employee being selected for redundancy.

Bumping is not required in every redundancy exercise.

However, in some circumstances it may be reasonable for an employer to consider it as an alternative to dismissal.

Relevant factors can include:

• Similarity between the roles
• Employee's skills
• Employee's experience
• Difference in pay
• Difference in status
• Length of service
• Whether the employee would accept the lower role

An employer should not automatically assume that a senior employee would refuse a lower-status or lower-paid position.

If bumping appears to be a realistic alternative, it can be sensible to raise it during consultation.

If an employer uses bumping, the employee who is displaced must also be treated fairly.

Mobility Clauses and Redundancy

Can My Employer Use a Mobility Clause Instead of Making Me Redundant?

Potentially.

A mobility clause can give an employer contractual authority to require you to work at another location.

However, the existence of a mobility clause does not automatically mean:

• There is no redundancy situation
• You must relocate regardless of circumstances
• You automatically lose redundancy pay if you refuse

The precise wording of the clause and the way the employer exercises it will be important.

What if I Refuse to Relocate?

Your refusal may be reasonable depending on your circumstances.

Relevant factors can include:

• Increase in travel distance
• Increase in travel time
• Travel costs
• Family responsibilities
• Health
• Availability of transport
• How much notice you received

A widely drafted clause stating that you can be required to work anywhere in the UK or overseas does not necessarily mean that every relocation instruction will be enforceable.

Contractual discretion must still be exercised appropriately.

If you refuse an alternative role because of location, that refusal can also become relevant when deciding whether suitable alternative employment has been unreasonably rejected.

Could Refusing a Mobility Instruction Be Treated as Misconduct?

Potentially, but this depends on the circumstances.

If the employer relies on an existing mobility clause and treats your refusal as misconduct, issues can include:

• Whether the clause covers the proposed relocation
• Whether the instruction was lawful
• Whether the employer acted reasonably
• Whether your refusal was reasonable

A dismissal should not simply be relabelled as misconduct to avoid genuine redundancy obligations.

The real reason for dismissal must be considered.

What if My Role is Moved Abroad?

Your role may be redundant at your existing location even where similar work continues overseas.

For example, an employer might move a function from the UK to another country.

An overseas position could potentially be considered as an alternative depending on the circumstances.

Relevant matters can include:

• Language requirements
• Immigration requirements
• Right to work
• Salary
• Benefits
• Relocation costs
• Family circumstances
• Tax
• Applicable employment law
• Whether the overseas role is genuinely available to you

The employer does not necessarily have to offer an overseas role that is clearly unsuitable.

However, it should avoid making unsupported assumptions where a potentially realistic alternative exists.

Voluntary Redundancy

Does an Employer Have to Offer Voluntary Redundancy?

No.

An employer can consider inviting employees to volunteer before moving to compulsory redundancies, but there is no general statutory obligation requiring it to do so.

Employers may use voluntary redundancy as a way of:

• Reducing compulsory dismissals
• Restructuring the workforce
• Allowing employees who already wish to leave to volunteer

The employer can normally reserve the right to reject applications.

Does an Employer Have to Accept Every Volunteer?

No.

An employer may receive more volunteers than the number of redundancies required.

It may legitimately decide to retain employees whose:

• Skills are particularly important
• Experience is required
• Roles are difficult to replace

The employer should nevertheless make decisions fairly and without unlawful discrimination.

For example, selection between volunteers should not unlawfully discriminate because of:

• Age
• Disability
• Race
• Sex
• Another protected characteristic

What if My Voluntary Redundancy Application is Rejected?

A rejected application does not normally mean that your employment ends.

You remain employed unless another process subsequently results in termination.

Your employer should not punish you merely because you previously expressed an interest in voluntary redundancy.

If you are later selected for compulsory redundancy, that selection should still be based on a lawful and fair process.

Is Voluntary Redundancy Legally a Dismissal?

Generally, yes.

An employee who accepts a voluntary redundancy package is normally treated as being dismissed by reason of redundancy rather than resigning in the ordinary sense.

This can preserve entitlement to statutory redundancy pay where the statutory requirements are satisfied.

Employers frequently ask employees accepting enhanced voluntary redundancy packages to sign a Settlement Agreement.

A valid settlement agreement can waive specified employment claims.

Can You Change Your Mind After Voluntary Redundancy is Accepted?

Usually, once a clear voluntary redundancy arrangement has been offered and accepted, you cannot simply withdraw from it unilaterally.

However, the particular scheme may allow withdrawal before:

• A Specified deadline
• Formal acceptance
• A Settlement agreement is signed

The scheme documentation and correspondence should therefore be checked carefully.

Can an Employer Withdraw Redundancy Notice?

Once an employer has actually given notice terminating your employment by reason of redundancy, it cannot normally withdraw that notice unilaterally.

Your agreement would generally be required.

This is different from being told only that you are at risk, which is not yet final notice of dismissal.

What if My Employer Offers My Job Back?

If circumstances change and your employer offers continued employment or re-engagement, you should consider the offer carefully.

A refusal can potentially affect entitlement to statutory redundancy pay where:

• Continued or alternative employment is suitable
• The employment starts within the relevant statutory period
• Your refusal is unreasonable

Your personal circumstances remain important.

For example, refusing may be more readily justified where:

• You have already committed to another job
• Terms are materially worse
• Hours have significantly changed
• Location is substantially less convenient

You should not assume that refusing reinstatement merely because you would prefer the redundancy payment will always be reasonable.

Does My Employer Have to Let Me Apply for Internal Jobs Before Advertising Externally?

There is no universal statutory requirement giving employees at risk of redundancy an exclusive opportunity to apply for every vacancy before it is advertised externally.

However, the employer should genuinely search for suitable alternative employment.

If a suitable vacancy exists and the employer ignores an employee at risk while recruiting externally, this may be relevant when assessing the fairness of the dismissal.

A genuinely suitable alternative role should normally be discussed with the affected employee rather than simply overlooked.

Is There an "Industry Norm" for Enhanced Redundancy Pay?

There is no general legal right to insist on enhanced redundancy pay merely because other employers in your industry commonly offer it.

Your entitlement will usually depend on:

• Your Employment contract
• A Collective agreement
• A Contractual redundancy scheme
• An Established contractual custom and practice

An employer can also make an enhanced discretionary offer.

A practice within your own organisation may potentially become contractual where it is sufficiently:

• Clear
• Certain
• Consistent
• Well-established

An industry practice alone does not automatically create that entitlement.

Skills, Training and Redundancy

Can My Employer Make Me Redundant Because I Lack Skills Without Offering Training?

This depends on the circumstances.

A restructure may create new roles requiring different skills.

An employer does not necessarily have to provide extensive retraining that would fundamentally transform an employee's capabilities.

However, a reasonable employer should consider whether relatively modest training would enable an existing employee to perform an alternative role.

Relevant factors can include:

• Extent of the skills gap
• Cost of training
• Time required
• Your existing experience
• Complexity of the new role
• Availability of suitable training

Where a reasonable amount of training would enable you to perform a suitable alternative position, refusing even to consider that option may affect the fairness of the redundancy.

What if My Employer Has Engineered the Redundancy?

An employer's motive does not necessarily determine whether the statutory definition of redundancy is satisfied.

It is possible for a genuine redundancy situation to exist even where the employer itself made business decisions that caused the reduction in work.

However, this does not mean the employer's conduct is irrelevant to every legal issue.

For example, evidence that an employer deliberately manipulated the situation to remove a particular employee may be relevant to:

• The Fairness of the dismissal
• Whether consultation was genuine
• Whether selection was predetermined
• Discrimination
• Victimisation
• Whistleblowing
• Breach of contract

The Tribunal will therefore distinguish between whether a statutory redundancy situation objectively existed and whether the individual dismissal was fair and lawful.

Can You Force Your Employer to Make You Redundant?

Generally, no.

You cannot normally require an employer to dismiss you simply because:

• Your workload has reduced
• Your duties have changed
• You believe your role has disappeared
• You would prefer to take redundancy

The employer may choose to retain you and reorganise your work, subject to your contractual rights.

What if My Role Changes Completely?

If your employer makes fundamental changes to your role without having a contractual right or your agreement, there may be separate contractual issues.

In sufficiently serious circumstances, you may consider whether the employer has committed a repudiatory breach capable of supporting a Constructive Dismissal claim.

This is different from simply demanding redundancy pay.

A successful constructive unfair dismissal claim can potentially result in:

• A Basic award
• A Compensatory award

The basic award is calculated using a formula similar to statutory redundancy pay.

However, that does not automatically mean you receive whatever enhanced redundancy payment your employer might otherwise have offered.

Entitlement to enhanced redundancy terms will depend on matters such as:

• The Scheme wording
• Contractual entitlement
• Whether the termination legally falls within the scheme
• The losses established

These are technically complex issues and resignation should not be undertaken simply to try to create a redundancy entitlement.

Appeal Against Redundancy

Do You Have a Statutory Right of Appeal?

There is no general standalone statutory right requiring every employer to offer an appeal against redundancy dismissal.

However, Acas recommends offering an appeal as part of a fair redundancy procedure.

An appeal can allow you to challenge matters such as:

• Selection pool
• Selection criteria
• Scoring
• Lack of consultation
• Failure to consider alternatives
• Procedural errors

If your employer's own redundancy procedure gives you an appeal right, it should normally follow that procedure.

Does the Acas Disciplinary Code Apply to Redundancy Appeals?

The Acas Code of Practice on disciplinary and grievance procedures does not generally apply to redundancy dismissals.

However, Acas publishes separate redundancy guidance recommending an appeal process.

The absence of an appeal does not automatically make a redundancy dismissal unfair, but the overall fairness of the employer's procedure can still be considered by an Employment Tribunal.

What if My Redundancy Appeal Succeeds?

If your appeal succeeds before your employment ends, your contract should generally continue as though you had not been selected for redundancy.

If employment has already ended, the employer may reinstate you.

Where reinstatement follows a successful appeal:

• Continuity of employment should generally be preserved
• Arrears of pay may need to be paid
• Redundancy money already paid may need to be returned

The employer may also need to reconsider the wider process where correcting your selection affects another employee.

Pregnancy and Family-Leave Redundancy Protection

Pregnant employees and certain new parents have additional statutory protection where their roles are selected for redundancy.

The protection applies to employees in specified protected periods connected with:

• Pregnancy
• Maternity leave
• Adoption leave
• Shared parental leave
• Neonatal care leave
• Bereaved partner's paternity leave

The detailed protected period varies according to the type of leave.

How Long Does Pregnancy and Maternity Redundancy Protection Last?

For pregnancy and maternity cases, the redundancy protected period generally:

• Starts when the employee tells the employer that they are pregnant
• Continues throughout pregnancy
• Continues through maternity leave
• Ends 18 months after the exact date of birth

If the employee does not notify the employer of the actual birth date, the end of the period can instead be calculated from the expected week of childbirth.

For further guidance, see Pregnancy Discrimination and Maternity Pay and Leave.

Does This Mean a Pregnant Employee Cannot Be Selected?

No.

Special redundancy protection does not normally remove an employee from an otherwise fair selection exercise.

For example, where an employer is reducing 20 existing roles to 10, a pregnant employee can still participate in the fair selection process.

If they are selected for redundancy, however, special priority applies to any suitable alternative vacancy.

What Priority Applies to Suitable Alternative Vacancies?

An employee within a qualifying redundancy protected period must generally be offered a suitable alternative vacancy as a priority over employees without that protection.

They should not ordinarily have to compete against unprotected employees for that suitable vacancy.

Where several employees all have statutory priority and there are not enough vacancies for everyone, the employer may need to use a fair process to decide who should receive the available positions.

Failure to comply with these special rules can potentially result in automatic unfair dismissal and, in pregnancy or maternity cases, discrimination claims.

Redundancy Pay

Who Qualifies for Statutory Redundancy Pay?

As at September 2026, an employee will normally qualify for statutory redundancy pay where they:

• Have employee status
• Have at least 2 years' continuous employment
• Are dismissed by reason of redundancy

There are statutory exceptions.

An employee may also be entitled to more than the statutory minimum because of:

• A Contract
• A Collective agreement
• An Enhanced redundancy scheme
• A Binding custom and practice

How is Statutory Redundancy Pay Calculated?

Statutory redundancy pay is calculated by reference to:

• Your Age during each year of service
• Your Length of continuous employment
• Your Weekly pay

Only a maximum of 20 years' service can be counted.

The statutory formula is:

• Half a week's pay for each full year you were under 22
• One week's pay for each full year you were aged 22 to 40
• One and a half week's pay for each full year you were aged 41 or over

The calculation works backwards from the date of redundancy where more than 20 years of service have been completed.

What is the Maximum Weekly Pay for 2026?

For redundancies taking effect on or after 6 April 2026, the statutory week's pay is capped at:

£751

The maximum statutory redundancy payment is therefore:

£22,530

These figures apply in Great Britain and can be revised each April.

The rules and limits in Northern Ireland are separate.

What Counts as Weekly Pay?

Your statutory redundancy calculation generally uses average weekly earnings over the relevant 12-week period.

Depending on your pay arrangements, the calculation can include relevant contractual amounts such as:

• Guaranteed overtime
• Contractual commission
• Contractual bonuses

Where earnings vary, statutory averaging rules apply.

The statutory cap still limits the week's pay used in the redundancy calculation to £751 for relevant 2026 dismissals.

You can use the Redundancy Calculator to estimate your statutory entitlement.

Can You Lose the Right to Statutory Redundancy Pay?

Yes.

Situations that can potentially affect your entitlement include:

• Unreasonably refusing suitable alternative employment
• Remaining in alternative employment beyond the trial period
• Leaving before the redundancy termination date without following the statutory rules
• Not having the required continuous service
• Not having employee status

The precise effect depends on the circumstances.

If you find another job before your redundancy date and want to leave early, you should discuss the position with your employer before resigning.

Redundancy Pay During Maternity or Other Family Leave

Statutory redundancy pay should not normally be artificially reduced simply because you are receiving lower family-related pay at the time of redundancy.

For example, if you are on maternity leave, the statutory calculation should generally be based on your normal weekly pay rather than your reduced Statutory Maternity Pay.

Special calculation protections can also apply to other qualifying forms of family-related leave.

If your employer operates a contractual enhanced redundancy scheme, the particular contractual wording should also be checked.

Reducing redundancy compensation simply because of pregnancy or maternity can create discrimination concerns.

What Happens if Your Employer is Insolvent?

If your employer is formally insolvent and cannot pay money owed to you, you may be able to claim from the government's Redundancy Payments Service.

Depending on eligibility and statutory limits, claims may include:

• Statutory redundancy pay
• Certain unpaid wages
• Holiday pay
• Statutory notice pay
• Certain protective awards

The weekly statutory cap applicable from 6 April 2026 is £751 for relevant payments subject to that cap.

You normally apply through the government's online insolvency service using information supplied by the insolvency practitioner.

The old approach of relying on an historic telephone number should not be treated as the current application procedure.

What if the Employer Has Stopped Trading but is Not Formally Insolvent?

The position can be more difficult where the business has simply stopped trading without entering a recognised insolvency process.

You may need to:

• Formally request payment
• Notify Acas
• Consider an Employment Tribunal claim

If the employer later enters insolvency, the Redundancy Payments Service may become relevant.

An internal grievance is not a mandatory legal prerequisite before making a redundancy-pay Tribunal claim, although raising the issue in writing can be useful.

Other Rights Relating to Redundancy

Right to Notice

Redundancy is a dismissal.

You are therefore normally entitled to the greater of:

• Your Contractual notice
• Your Statutory minimum notice

Your statutory notice entitlement generally increases with continuous service up to a maximum of 12 weeks.

Your employer may:

• Require you to work notice
• Place you on garden leave where permitted
• Make a valid payment in lieu of notice

For further guidance, see Notice.

Time Off to Look for Work

If you have been continuously employed for at least 2 years by the end of your notice period, you will generally have the statutory right to a reasonable amount of time off during redundancy notice to:

• Look for another job
• Apply for jobs
• Attend interviews
• Arrange training
• Attend relevant training

What is reasonable will depend on your circumstances.

Relevant factors can include:

• Length of your notice period
• Availability of suitable work
• Distance you need to travel
• Number of interviews

How Much of This Time Off Must Be Paid?

The statutory payment obligation is limited.

Regardless of how much reasonable time off you take, your employer normally only has to pay up to 40% of one week's pay for this purpose.

Your contract or employer policy may provide more generous rights.

Is Redundancy Pay Tax-Free?

The tax treatment depends on the different elements of your termination package.

It is not correct to assume that the first £30,000 of everything you receive when leaving employment is tax-free.

Amounts such as the following are normally taxable as earnings:

• Salary
• Outstanding wages
• Holiday pay
• Bonuses
• Payment in lieu of notice
• Post-Employment Notice Pay

Statutory redundancy pay and qualifying termination compensation can generally benefit from the £30,000 termination payment threshold.

Broadly, the first combined £30,000 of qualifying redundancy and termination payments may normally be paid without employee Income Tax.

Amounts above the threshold are generally taxable.

Separate National Insurance rules also apply, including employer Class 1A National Insurance on qualifying termination payments above £30,000.

The precise tax treatment should be checked where a package includes several different payments.

Collective Redundancies

Where 20 or more redundancies at one establishment within 90 days are proposed, the collective redundancy rules should be considered in addition to the individual redundancy process.

These rules include:

• Representative consultation
• Minimum consultation timing
• Required information
• Notification obligations
• Potential protective awards

For further guidance, see Collective Redundancies.

Can an Employer Make You Redundant Without Paying Redundancy Pay?

A genuine redundancy dismissal does not automatically mean every employee qualifies for statutory redundancy pay.

For example, an employee with less than two years' qualifying service will not normally qualify for statutory redundancy pay.

However, they may still have other rights, including:

• Notice pay
• Outstanding holiday
• Outstanding wages
• Discrimination protection
• Automatically unfair dismissal protection where applicable

An employer may also offer enhanced redundancy pay even where there is no statutory obligation to do so.

What Are the Time Limits for Claiming Statutory Redundancy Pay?

As at 10 September 2026, the normal Employment Tribunal time limit for a statutory redundancy pay claim is:

6 months minus 1 day from the date your employment ends

You should normally notify Acas within the applicable time limit before bringing an Employment Tribunal claim.

Acas Early Conciliation can affect the calculation of the final deadline.

For statutory redundancy pay, the six-month period is already longer than the ordinary current three-month Tribunal limitation period.

What is the Time Limit for Contractual Redundancy Pay?

As at 10 September 2026, an Employment Tribunal breach-of-contract claim concerning contractual redundancy pay will generally have a shorter limitation period of:

3 months minus 1 day from termination

Different limitation periods can apply where a contractual claim is instead pursued through the civil courts.

Are These Tribunal Time Limits Changing?

Yes.

From 1 October 2026, most Employment Tribunal claims will move to a 6 months minus 1 day limitation period where the relevant limitation period begins on or after that date.

Statutory redundancy pay claims already generally have a six-month-minus-one-day period.

The reform will be particularly relevant to other claims arising alongside redundancy, such as:

• Unfair dismissal
• Discrimination
• Contractual claims within Tribunal jurisdiction

Different claims arising from the same redundancy can therefore have different deadlines depending on when the relevant cause of action arises and the applicable transitional rules.

What if I Want to Claim Unfair Dismissal as Well?

As at 10 September 2026, an ordinary unfair dismissal claim generally requires at least 2 years' continuous employment, subject to the many exceptions where no qualifying service is required.

From 1 January 2027, the ordinary unfair dismissal qualifying period will reduce to 6 months.

A redundancy dismissal may potentially be unfair where, for example:

• There was no genuine redundancy
• The selection pool was unreasonable
• Selection criteria were unfair
• Scoring was manipulated
• Consultation was not meaningful
• Suitable alternative employment was ignored
• The dismissal was predetermined

Claims involving discrimination or automatically unfair reasons may have different qualifying-service rules.

Because redundancy cases can involve several separate claims and limitation periods, it is important to identify the relevant deadlines promptly.