Redundancy

GOV.UK guidance defines it plainly: 'Redundancy is a form of dismissal from your job. It happens when employers need to reduce their workforce.' Employees selected for redundancy have a package of possible entitlements, including redundancy pay, a notice period, consultation with their employer, the option to move into a different job, and time off to find a new job. Selection itself has to be fair: employees must be selected for redundancy in a fair way, for example because of their level of experience or capability to do the job, and cannot be selected because of age, gender, disability or pregnancy.

Statutory redundancy pay depends on length of service: an employee is normally entitled to it once they've worked for their current employer for 2 years or more, calculated on a sliding scale by age band and capped at 20 years' service. For redundancies on or after 6 April 2026, the guidance confirms weekly pay is capped at £751 and the maximum statutory redundancy pay available is £22,530 — lower amounts apply to redundancies before that date.