Redundancy Advice for Employees.

A genuine redundancy may arise where the employer closes a business or workplace, or needs fewer employees to carry out work of a particular kind. The employer should be able to explain what has changed and why your role is affected.

A role does not have to disappear word for word for redundancy to be genuine. Duties may be reorganised or shared. However, simply labelling a dismissal “redundancy” does not make it lawful. A solicitor can assess the business rationale and whether the process followed was fair.

Your employer should consult meaningfully before making a final decision. Individual consultation commonly involves explaining the proposals, listening to your concerns and considering alternatives, such as vacancies or different working arrangements.

Where an employer proposes at least 20 redundancies at one establishment within a 90-day period, collective consultation rules generally apply. In such cases, consultation must usually begin at least 30 days before the first proposed redundancy for 20–99 dismissals, or 45 days for 100 or more. The precise duties depend on the circumstances.

A failure to consult may support an unfair dismissal claim and, in collective cases, a protective award claim.

Employers may use criteria such as skills, performance, qualifications or attendance, but the selection process should be applied reasonably and without unlawful discrimination. Some scoring methods can disadvantage people with disabilities or those who have taken protected leave.

Ask for an explanation of your scoring and the pool from which employees were selected. If the assessment appears inconsistent or discriminatory, an appeal may be appropriate. Our solicitors can consider whether the facts raise a separate workplace discrimination issue.

Employees with at least two years’ continuous service will generally qualify for statutory redundancy pay, subject to eligibility rules. The calculation depends on your age during each complete year of service, capped years of service and the applicable statutory cap on a week’s pay. Contractual schemes may provide a more generous entitlement.

Broadly, the statutory calculation counts half a week’s pay for years worked under age 22, one week for years aged 22–40, and one and a half weeks for years aged 41 or older. Weekly pay and total service are subject to statutory limits which change over time. We recommend using the current official calculator rather than relying on an outdated figure.

Your employer may have a duty to look for suitable alternative roles. Whether a vacancy is suitable depends on matters including duties, location, terms and your personal circumstances. Special rules may give some employees priority for suitable vacancies, including certain employees affected by pregnancy or family-related leave.

Unreasonably refusing a suitable alternative role can affect statutory redundancy pay. A statutory trial period may also apply. Obtain advice before rejecting an offer if you are concerned about its impact on your entitlement.

Employers sometimes propose an enhanced redundancy package under a settlement agreement. This can bring certainty, but signing generally means waiving specified claims and accepting the agreed terms of departure.

We can compare the offer with your minimum contractual and statutory entitlements and advise on provisions such as notice, reference, confidentiality and post-employment restrictions. See our settlement agreement service for more information.

Yes. Even where there is a genuine redundancy situation, the dismissal may be unfair because of unreasonable selection, inadequate consultation or failure to consider suitable alternatives. Some employees may also have separate discrimination or automatically unfair dismissal claims.

Whether you qualify for ordinary unfair dismissal depends on the applicable service rules, with the qualifying period scheduled to reduce from two years to six months for dismissals from 1 January 2027. Our unfair dismissal solicitors can assess potential claims.

The tax treatment depends on what each payment represents. Genuine redundancy and certain termination payments may fall within the £30,000 tax exemption rules, while payments for notice, unpaid salary, holiday and other earnings are generally taxable.

An enhanced package can contain several elements treated differently for tax. Before agreeing a departure, check the breakdown and consider specialist tax advice if the arrangement is complex.

For most Employment Tribunal claims arising from events on or after 1 October 2026, the usual deadline is six months less one day. Events before that date will generally retain the previous three-month limit, subject to claim-specific exceptions. The date from which time runs depends on the claim, so identify it carefully.

You usually need to notify Acas before bringing a claim. Doing so within time can pause the limitation clock while Early Conciliation takes place. An internal grievance, disciplinary appeal or settlement discussion does not itself extend the deadline. Some urgent claims, including applications for interim relief, have much shorter limits. Our Employment Tribunal solicitors can help you establish the deadline that applies.

Claims for statutory redundancy pay have their own rules and are not always calculated in exactly the same way as unfair dismissal claims. Seek specific advice promptly so that one claim’s deadline is not mistaken for another.