Understanding Redundancy in the UK: What You Need to Know

Being made redundant can be an overwhelming experience. If you’re facing redundancy, understanding your legal rights is essential to ensure you’re treated fairly and receive everything you’re entitled to. This comprehensive guide explains the UK’s redundancy law, entitlements, and how our expert employment solicitors can help protect your interests.

What Is Redundancy? Your Legal Definition

Under UK employment law, specifically the Employment Rights Act 1996, redundancy occurs when:

1.   Your employer closes the entire business
2.   Your specific workplace location closes
3.   The need for employees to perform your type of work has reduced or ceased

As an employee in the UK, it’s crucial to understand that redundancy is a form of dismissal that must follow strict legal procedures.

When Can Your Employer Make You Redundant?

Your employer can only make you redundant if:

1.   There is a genuine business need (such as financial difficulties or workplace reorganisation)
2.   They follow a fair and transparent selection process
3.   They conduct proper consultation with you before finalising any decision

If these conditions aren’t met, your redundancy may be unlawful, and you may have grounds for an unfair dismissal claim.

Your Legal Rights During Redundancy: What You’re Entitled To

As an employee facing redundancy in the UK, you have significant legal protections:

Fair Selection Process

Your employer must use objective criteria when selecting employees for redundancy. These might include:

1.   Skills, qualifications and aptitude
2.   Standard of work performance
3.   Attendance record (excluding protected absences)
4.   Disciplinary record

Selection based on protected characteristics such as age, gender, disability, pregnancy or maternity leave is unlawful discrimination.

Meaningful Consultation

Your employer must consult with you before making a final redundancy decision. This consultation should:

1.   Explain the business reasons for potential redundancies
2.   Discuss why you’ve been selected
3.   Explore alternatives to redundancy
4.   Consider suitable alternative roles within the company

Additional consultation requirements apply with employee representatives for collective redundancies (20+ employees).

Redundancy Pay Entitlements

If you’ve worked for your employer for at least two years, you’re legally entitled to:

Statutory Redundancy Pay:

1.   Half a week’s pay for each full year worked under the age of 22
2.   One week’s pay for each full year worked between ages 22-41
3.   One and a half week’s pay for each full year worked, age 41 and over
4.   Capped at 20 years’ service and subject to the weekly pay limit (currently £643)

Enhanced Redundancy Pay: Some employers offer generous redundancy packages through your employment contract or company policy.

Notice Period Rights

You’re entitled to a minimum statutory notice period based on your length of service:

1.   At least one week’s notice if employed between one month and two years
2.   One week’s notice for each year if employed between two and 12 years
3.   12 weeks’ notice if employed for 12+ years

Your contract may provide for a more extended notice period.

When Is Redundancy Unfair? Spotting Unlawful Practices

Your redundancy may be unfair if:

1.   There was no genuine redundancy situation
2.   Your employer didn’t follow a fair selection process
3.   Proper consultation didn’t take place
4.   You were selected due to a protected characteristic (discrimination)
5.   Your employer failed to consider suitable alternative employment
6.   Your employer didn’t follow their redundancy procedure

You may have grounds for an unfair dismissal claim at an Employment Tribunal in these circumstances.

Challenging Your Redundancy: How to Appeal

You have the right to appeal if you believe your redundancy is unfair. You should:

1.   Review your employer’s redundancy appeal procedure
2.   Submit your appeal in writing, clearly stating your grounds
3.   Attend the appeal meeting with a colleague or trade union representative
4.   Consider seeking legal advice from specialist employment solicitors

Redundancy and Protected Characteristics: Additional Rights

Redundancy During Maternity Leave

If you’re on maternity leave when redundancies are announced, you have special protection:

1.   You must be included in the consultation
2.   You have priority right to any suitable alternative vacancies
3.   Selection criteria cannot relate to your pregnancy or maternity leave

Redundancy and Disability

If you have a disability under the Equality Act 2010:

1.   Your employer must make reasonable adjustments during the redundancy process
2.   Selection criteria must not discriminate against your disability
3.   Your employer should consider adjustments to alternative roles

Age-Related Redundancy Protection

Age discrimination in redundancy selection is unlawful. This includes:

1.   Selecting older workers first (“last in, first out” policies may indirectly discriminate)
2.   Making assumptions about retirement plans
3.   Selecting younger workers with less service (unless objectively justified)

After Redundancy: Next Steps and Support

Financial Support Available

Following redundancy, you may be eligible for:

1.   Universal Credit
2.   Jobseeker’s Allowance
3.   Help with housing costs
4.   Council Tax Reduction

Job Search Support

1.   Your employer should allow you reasonable time off to look for work
2.   You can access free support through your local Jobcentre Plus
3.   Consider using the government’s National Careers Service

How Our Employment Solicitors Can Help You

If you’re facing redundancy, our specialist employment solicitors can:

1.   Review the fairness of your redundancy process
2.   Advise on whether you have grounds to challenge the decision
3.   Calculate your correct redundancy pay entitlement
4.   Negotiate an improved settlement package
5.   Represent you in Employment Tribunal proceedings if necessary
6.   Guide settlement agreements

Frequently Asked Questions About Redundancy

1. Do I qualify for statutory redundancy pay?
   You need at least two years of continuous service with your employer to qualify for statutory redundancy pay.
2. Can I be made redundant while on sick leave?
   Yes, but your employer must still follow a fair process and consult with you appropriately.
3. What is a settlement agreement in redundancy?
   A legally binding document where you agree to waive your right to bring claims against your employer in exchange for a financial settlement, typically higher than your statutory minimum.
4. Is redundancy different from being dismissed?
   Yes. Redundancy relates to your role becoming unnecessary, while dismissal may be for performance, conduct or other reasons.
5. Can my employer make me redundant and then hire someone else?
   If your employer hires someone to do the same job shortly after making you redundant, this could indicate that the redundancy wasn’t genuine and may be an unfair dismissal.
6. How long do I have to claim unfair redundancy?
   You typically have three months, less than one day from your last day of employment, to bring an unfair dismissal claim.
7. Can I request voluntary redundancy?
   Yes, but your employer isn’t obliged to accept your request.