Back to guidesEmployment Law Guide

Redundancy at Work – Your Rights, Consultation Rules, Payments, and How to Challenge Unfair Redundancy

Redundancy can be one of the most stressful experiences in working life — but UK law gives you strong protections. Employers must follow a fair, transparent, and legally compliant process. If they don't, the redundancy may be unfair or even unlawful.

What Is Redundancy?

Redundancy happens when your job role is no longer needed because of:

  • Business closure
  • Workplace closure
  • Reduced need for employees
  • Restructuring or reorganisation
  • Financial pressures
  • Technological changes

Redundancy is not about your performance or conduct — it is about the role, not the person.

Your Legal Rights in a Redundancy Process

1. A Fair Consultation Process

Your employer must:

  • Explain the reasons for redundancy
  • Discuss alternatives
  • Allow you to ask questions
  • Consider your suggestions

2. Fair Selection Criteria

Selection must be:

  • Objective
  • Measurable
  • Consistent
  • Non discriminatory

Unfair criteria include:

  • Age
  • Disability
  • Pregnancy
  • Part time status
  • Trade union membership
  • Whistleblowing

3. Suitable Alternative Employment

Your employer must offer any suitable alternative roles before dismissing you.

4. Redundancy Pay

If you have 2+ years' service, you are entitled to:

  • Statutory Redundancy Pay
  • Or enhanced company redundancy pay (if offered)

5. Notice Period

You must receive your contractual or statutory notice.

6. The Right to Appeal

You can challenge the decision if the process was unfair.

The Stages of a Fair Redundancy Process

Stage 1 — Announcement of Risk

Your employer must tell you that your role is at risk and explain why.

Stage 2 — Consultation

Consultation must be genuine, meaningful, and not a tick box exercise. You should be able to:

  • Ask questions
  • Challenge the business case
  • Suggest alternatives
  • Request evidence

Stage 3 — Selection Process

If multiple people are at risk, employers must use fair criteria such as:

  • Skills
  • Qualifications
  • Performance (evidence based)
  • Attendance (excluding disability related absence)

Stage 4 — Suitable Alternative Roles

Employers must offer:

  • Vacancies
  • Redeployment opportunities
  • Trial periods

Stage 5 — Redundancy Notice

You must receive:

  • Written confirmation
  • Notice period
  • Redundancy pay details

Stage 6 — Appeal

You can appeal if:

  • The process was flawed
  • Selection was unfair
  • Consultation was inadequate

What Makes a Redundancy Unfair?

A redundancy may be unfair if:

  • The role still exists
  • You were targeted personally
  • Selection criteria were biased
  • Consultation was rushed or meaningless
  • You were replaced shortly after
  • You were selected due to pregnancy, disability, or whistleblowing
  • Your employer failed to consider alternatives

Redundancy Pay Explained

Statutory Redundancy Pay

Based on:

  • Age
  • Length of service
  • Weekly pay (capped)

Enhanced Redundancy Pay

Some employers offer more generous packages — they must apply their policy consistently.

Collective Redundancy Rules

If 20 or more employees are at risk within 90 days, employers must:

  • Hold collective consultation
  • Consult for a minimum period
  • Notify the government (HR1 form)

Failure to do so may entitle employees to a Protective Award of up to 90 days' pay.

How to Protect Yourself During Redundancy

  • Request all documents in writing
  • Ask for scoring sheets
  • Challenge unfair criteria
  • Keep notes of all meetings
  • Request evidence behind decisions
  • Ask about alternative roles
  • Appeal if the process is flawed

Frequently Asked Questions

Not for similar roles — that may be unfair.

redundancy

Need Support With Redundancy?

If you're at risk of redundancy, early advice can protect your rights, your income, and your future options.

Get Confidential Advice