Redundancy Rights Explained: What You’re Entitled To in the UK
by Joseph | 29 Sep 2025
Facing redundancy is stressful, but knowing your legal rights can bring clarity and confidence. This guide lays out your entitlements under UK law including redundancy pay, notice periods, consultation, and what to watch out for.
What Is Redundancy, Legally?
In UK employment law, redundancy is a form of dismissal that happens when your employer no longer needs someone to do your job. You cannot be selected unfairly for redundancy, for example because of age, gender, disability, or pregnancy. That would be unlawful. Read more at: https://www.gov.uk/redundancy-your-rights
Qualifying for Redundancy Pay
One of the most important rights is statutory redundancy pay. To qualify, you must have at least two years of continuous employment with the same employer. The calculation is:
- For each full year of service under age 22 you receive half a week’s pay
- For each full year between ages 22 and 40 you receive one week’s pay
- For each full year aged 41 and over you receive one and a half week’s pay
Your weekly pay is capped at a statutory maximum. For 2025 that maximum is £719 per week. You can only claim redundancy pay for up to 20 years of service. Employers may also offer enhanced or contractual redundancy pay that is more generous than the statutory minimum. Always check your contract or staff handbook.
If your employer fails to pay what you are owed you can make a claim to an employment tribunal. For statutory redundancy pay the claim must be made within 6 months minus one day of your job ending.
More details at: https://www.acas.org.uk/your-rights-during-redundancy/redundancy-pay
If your employer becomes insolvent you can apply to the Redundancy Payments Service to recover pay owed. That can include redundancy pay and notice pay. Apply here: https://www.gov.uk/your-rights-if-your-employer-is-insolvent
Notice Periods and Pay in Lieu
You are entitled to a notice period before your employment ends unless you are given pay in lieu.
The statutory notice minimums are:
- 1 week’s notice if you have worked between 1 month and 2 years
- For 2 or more years of service you are entitled to 1 week’s notice for each full year worked up to a maximum of 12 weeks
See guidance here: https://www.citizensadvice.org.uk/work/redundancy/check-your-rights-if-youre-made- redundant/if-youre-being-made-redundant/redundancy-notice-period
If your contract gives you a longer contractual notice period you benefit from that. A contract should never give less than the statutory minimum.
Sometimes instead of working your notice you are given payment in lieu of notice. That means your employer pays you an amount equal to your notice pay and your employment ends straight away.
Check details here: https://www.gov.uk/redundancy-your-rights/notice-periods
Even if you are told not to come into work your normal pay and benefits should continue for the notice period unless your contract allows otherwise.
If you wish to leave early for example because you have a new job you must give counter notice during the obligatory period to preserve your redundancy entitlements.
See ACAS: https://www.acas.org.uk/your-rights-during-redundancy/redundancy-notice
Consultation, Alternative Roles and Time Off
For multiple redundancies or larger situations your employer must hold consultation with affected employees. They must also explore suitable alternative employment within the organisation. If a matching role is offered and you refuse unreasonably this can affect your entitlement.
During your notice period you are entitled to reasonable paid time off to look for a new job or arrange training.
More at: https://www.gov.uk/staff-redundant
What to Check and Steps to Take
- Ask for everything in writing including redundancy letter, pay calculation and notice period
- Verify your redundancy pay matches either statutory or contractual terms
- Check your notice entitlement and whether you will work or receive payment in lieu
- Review any alternative roles offered
- If something seems wrong contact ACAS