Your Rights During Redundancy (UK)

Updated for UK workers. Covers consultation, selection, statutory redundancy pay, appeal letters, and unfair dismissal.

Redundancy doesn't remove your employment rights. If you're selected for redundancy, your employer must follow a fair procedure, consult properly, and pay what you're owed. If they cut corners, you may have a claim for unfair dismissal.

Quick check: You have the right to a collective consultation if 20 or more redundancies are proposed. For individual redundancies, you're still entitled to a fair selection process and proper notice.

Consultation

Employers must consult meaningfully before making redundancies. For collective redundancies, consultation must start at least 30 days before the first dismissal — 45 days if 100+ roles are at risk.

Selection

The selection criteria should be objective and applied consistently. Common criteria include skills, performance, and attendance. If you believe you were selected for a prohibited reason — such as pregnancy, whistleblowing, or trade union membership — that could be automatically unfair.

Redundancy pay

If you have 2 years' continuous service, you're entitled to statutory redundancy pay. The amount depends on your age, weekly pay up to a cap, and years of service. Some employers offer enhanced redundancy terms in your contract or handbook.

Notice pay

You're entitled to paid notice — either contractual or statutory, whichever is longer. If your employer pays you in lieu of notice (PILON), it should cover at least the statutory minimum.

How to appeal a redundancy decision

Write a formal redundancy appeal letter if you believe:

Unfair dismissal

If your employer makes you redundant without following a fair process, you may have an unfair dismissal claim. Claims must usually be started within 3 months less one day of your employment ending. You'll need an ACAS early conciliation certificate before lodging the claim.

Ready to draft your appeal?

LawImNotSure can generate a formal redundancy appeal letter tailored to your situation. The first document is free with signup.

Calculating your statutory redundancy pay

Statutory pay uses a formula: half a week's pay (under 22), one week's pay (22–40), or one and a half weeks' pay (41+) for each full year of service, capped at £700/week and 20 years. If you are unsure your selection was fair, pair your appeal with a formal grievance and, where money is owed, a letter before action. Keep the consultation emails — they are your evidence if you later need an employment-data subject access request.

More free UK legal guides: Letter before action · Faulty goods · Section 21 notices · Tenant complaints · Grievances · Redundancy · Section 75 / chargeback · Subject access requests · Consumer rights · Solicitor costs

Worked example: a typical redundancy pay-out

Priya, 38, earned £600/week and had 9 years' service. Her statutory pay: 9 years × 1 week × £600 = £5,400 (under the £700 cap, so no reduction). She also got 9 weeks' notice pay and was consulted for 30 days before dismissal. When her employer skipped consultation and offered no alternative role, she used our grievance letter then a letter before action for the owed notice pay. Real figures make the right claim obvious.

Frequently asked questions

Is redundancy pay taxable?

Statutory redundancy pay is usually tax-free up to £30,000. Enhancement payments may be taxed — check your payslip.

Can I refuse redundancy and ask for another role?

Yes. You have the right to be considered for suitable alternative employment; unreasonable refusal can affect your rights.

What if my employer has no real redundancy situation?

That may be unfair dismissal. An appeal letter and, if needed, Early Conciliation via ACAS are the usual next steps.

Generate your redundancy appeal letter

Answer a few questions and get a professional, case-ready letter in minutes.

Get Started Free

Know someone with the same problem? Refer a friend — you both get a free document →

Get the Free Legal Letter Templates Pack

5 ready-to-use UK letter templates delivered to your inbox. No spam, unsubscribe anytime.