Redundancy: Your Rights, Consultation and Pay
Redundancy rights in 2026: fair selection, consultation, statutory redundancy pay rates, notice periods, trial periods and how to challenge your selection.
Quick answer
If you are an employee with 2 or more years' service and are made redundant, you are entitled to statutory redundancy pay: half a week's pay per full year under age 22, one week's pay per year aged 22 to 40, and one and a half weeks' pay per year aged 41 or over, counting at most 20 years' service. For redundancies on or after 6 April 2026 weekly pay is capped at £751 and the maximum payment is £22,530; amounts under £30,000 are tax-free. You are also entitled to fair selection, consultation (starting at least 30 days before dismissals for 20–99 proposed redundancies, 45 days for 100 or more), statutory notice of 1 to 12 weeks, a 4-week trial in any alternative job, and paid time off to job-hunt. You have 6 months from your job ending to claim the payment.
Overview
Redundancy is a form of dismissal from your job that happens when employers need to reduce their workforce. If you are being made redundant you may be entitled to redundancy pay, a notice period, consultation with your employer, the option to move into a different job, and time off to find new work. You must be selected in a fair way — selection because of age, gender, disability or pregnancy could be an unfair dismissal. This guide covers the process step by step, including the statutory redundancy pay rates that apply from 6 April 2026.
Who Can Use This Process
- For statutory redundancy pay: you are an employee and have worked for your current employer for 2 years or more
- You were dismissed by reason of redundancy — dismissal for misconduct does not count
- Some categories are excluded, including crown servants, members of the armed forces or police services, and share fishermen
- You can also claim if you have been temporarily laid off (on no pay or less than half a week's pay) for more than 4 weeks in a row, or more than 6 non-consecutive weeks in a 13-week period
Step-by-Step Process
Check the selection process is fair
Your employer should use a fair and objective way of selecting you for redundancy — commonly last in, first out; asking for volunteers; disciplinary records; or appraisal markings, skills, qualifications and experience. You cannot be selected because of sex, gender reassignment, marital status, sexual orientation, race, disability, religion or belief, age, trade union membership, pregnancy or maternity, working part-time, whistleblowing, jury service and other protected reasons — that would be an unfair dismissal.
- No selection process is needed if the whole operation is closing or you are the only employee in your part of the organisation
- If 'last in, first out' is used, check it is not indirect age discrimination
Take part in consultation
You are entitled to a consultation with your employer about why you are being made redundant and any alternatives to redundancy. If your employer is making up to 19 redundancies there are no set rules for how the consultation is run. If 20 or more employees are being made redundant at the same time, collective consultation rules apply: consultation happens with a trade union rep or elected employee rep and must cover ways to avoid redundancies, the reasons, keeping dismissals to a minimum and limiting the effects (for example retraining).
- You can make a tribunal claim if your employer does not consult properly — for example starts late or does not consult at all
- Employers must notify the Redundancy Payments Service (form HR1) before a collective consultation starts
Consider suitable alternative employment
Your employer might offer you 'suitable alternative employment' within the organisation or an associated company; suitability depends on how similar the work is, the terms, your skills and circumstances, and the pay, status, hours and location. You have the right to a 4-week trial period in any alternative job (extendable in writing for training). If you unreasonably turn down suitable alternative employment you may lose your right to statutory redundancy pay — and if your employer has a suitable role but does not offer it to you, the redundancy could be an unfair dismissal.
- If you are on (or recently took) maternity or other parental leave, your employer must offer you a suitable alternative job if one is available
- Tell your employer during the 4-week trial if the job is not suitable — leaving it later costs you your redundancy pay
Check your notice period and notice pay
You must be given a notice period before your employment ends. The statutory minimums are: at least one week's notice if employed between one month and 2 years; one week's notice for each year if employed between 2 and 12 years; and 12 weeks' notice if employed for 12 years or more. Your contract may give more but not less. Your employer should either pay you through the notice period or make a payment in lieu of notice.
Use your right to time off to find work
If you have been continuously employed for 2 years by the end of your notice period, you are allowed a reasonable amount of time off to look for another job or arrange training. Whatever time you take, your employer only has to pay up to 40% of one week's pay in total. The Jobcentre Plus Rapid Response Service can also help with CVs, training and job hunting — from when you suspect redundancy up to 13 weeks after being made redundant.
Calculate your statutory redundancy pay
With 2 or more years' service 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 to 40; and one and a half week's pay for each full year you were 41 or older. Length of service is capped at 20 years, and weekly pay is your average over the 12 weeks before your redundancy notice. If you were made redundant on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory redundancy pay is £22,530. Statutory redundancy pay under £30,000 is not taxable.
- Use the GOV.UK redundancy pay calculator for your exact figure
- Your contract may provide enhanced redundancy pay above the statutory minimum
Appeal if you think your selection was unfair
You can appeal if you feel you have been unfairly selected — write to your employer explaining your reasons. If that does not resolve it, you may be able to make a claim to an employment tribunal for unfair dismissal (Acas early conciliation applies first, and unfair dismissal claims must be made within 3 months of dismissal).
- Voluntary redundancy still counts as redundancy, but it is up to your employer whether to select you if you volunteer
If your employer does not pay
You have 6 months from the date your job ends to apply for statutory redundancy pay. If your employer refuses to pay, write requesting payment; if that fails you can bring a tribunal claim. If your employer is insolvent, you can claim redundancy pay and other money owed from the government's Redundancy Payments Service instead.
Costs
Important Warnings
You have only 6 months from the date your job ends to apply for statutory redundancy pay.
Unreasonably refusing suitable alternative employment can cost you your statutory redundancy pay — as can failing to give notice within the 4-week trial period.
Being dismissed for misconduct does not count as redundancy, so no statutory redundancy pay is due.
The £751 weekly cap and £22,530 maximum apply only if you were made redundant on or after 6 April 2026 — earlier redundancies use lower amounts.
Useful Links
Frequently asked questions
- How much statutory redundancy pay will I get in 2026?
- 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 to 40, and one and a half week's pay for each full year you were 41 or older — with service capped at 20 years. If you were made redundant on or after 6 April 2026, your weekly pay counts up to a cap of £751 and the maximum total payment is £22,530. Statutory redundancy pay under £30,000 is not taxable.
- Who qualifies for statutory redundancy pay?
- You normally qualify if you are an employee and have been working for your current employer for 2 years or more, and you are dismissed by reason of redundancy. You do not qualify if your employer offers to keep you on or offers suitable alternative work that you refuse without good reason. Some groups are excluded, including crown servants, members of the armed forces or police services and share fishermen. Dismissal for misconduct is not redundancy.
- What consultation am I entitled to?
- You are entitled to consultation about why you are being made redundant and any alternatives. If 20 or more employees are being made redundant at the same time, collective rules apply: consultation is with a trade union or elected employee rep and must start at least 30 days before any dismissals take effect for 20 to 99 redundancies, or at least 45 days before for 100 or more. You can claim to an employment tribunal if your employer does not consult properly.
- Can I be made redundant while pregnant or on maternity leave?
- You cannot be selected for redundancy because of maternity leave, birth or pregnancy — that would be an unfair dismissal. If you are on, or have recently taken, maternity leave or other types of parental leave, your employer must offer you a suitable alternative job if one is available.
- What notice am I entitled to?
- The statutory minimums are at least one week's notice if you have been employed between one month and 2 years, one week per year for 2 to 12 years' service, and 12 weeks' notice for 12 years or more. Your employer should pay you through the notice period or make a payment in lieu of notice, based on your average earnings over the 12 weeks before notice starts.
- What if my employer refuses to pay or goes bust?
- You have 6 months from the date your job ends to apply for statutory redundancy pay. If your employer will not pay, write to them, then consider an employment tribunal claim (Acas early conciliation first). If your employer is insolvent, you have specific rights and can claim the money owed — including redundancy pay — from the government instead.
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