Quick answer: The core redundancy rights UK employees have are statutory redundancy pay if you are an employee with 2 years' service, a minimum notice period, consultation, fair selection, and the chance to be offered a suitable alternative job. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum statutory payment is £22,530.
If you have just been told your role is "at risk", you probably have a letter you do not fully understand and a meeting date coming up. This guide sets out your redundancy rights in the UK in plain English, shows a full worked pay calculation, and explains what to do if the process feels unfair. Your contract may give you more than the legal minimum, so keep it to hand.
Key facts at a glance
Who qualifies for statutory redundancy pay? Employees with 2 years' continuous service with their current employer.
How much? Up to 1.5 weeks' pay per year of service, depending on age, with weekly pay capped at £751 and service capped at 20 years.
Maximum payment: £22,530 for redundancies on or after 6 April 2026.
Notice: at least 1 week after one month's service, then 1 week per full year, up to 12 weeks.
Collective consultation: 30 days for 20 to 99 redundancies, 45 days for 100 or more.
Tax: the first £30,000 of a genuine redundancy payment is usually tax-free.
Deadline to claim statutory pay: 6 months from the date your job ends.
What counts as redundancy in the UK?
Redundancy is a form of dismissal. It happens when an employer needs fewer people to do a particular kind of work, closes a workplace or closes the business. The role disappears or shrinks. It is not about your performance or conduct.
"Layoff" is used loosely to mean job cuts, but in UK employment law a layoff is something narrower: being sent home temporarily without work or pay. If your job is ending for good, you are being made redundant, and the rights below apply. If an employer uses "redundancy" to remove someone they want rid of, that may be an unfair dismissal.
Who qualifies for statutory redundancy pay?
GOV.UK says you will normally be entitled if you are an employee and have worked for your current employer for 2 years or more. You will not get it if you are dismissed for misconduct, or if you unreasonably refuse a suitable alternative job your employer offers. Some groups are excluded, including crown servants, members of the armed forces and police, share fishermen and some apprentices.
Your employment status matters. Agency workers, casual workers and the self-employed do not usually get statutory redundancy pay, though they keep other rights such as holiday pay. If you are unsure of your status, Acas can help.
How the Employment Rights Act 2025 changes things
The Employment Rights Act 2025 reduces the qualifying period for unfair dismissal from 2 years to 6 months, for dismissals with an effective date of termination on or after 1 January 2027. That is a change to unfair dismissal protection. GOV.UK still lists 2 years for statutory redundancy pay. The Act is being brought in in stages, so check GOV.UK for which changes are in force on the date you read this.
How much statutory redundancy pay will I get?
Count back from your redundancy date in full years of service, up to the most recent 20. For each full year you get:
Under 22: half a week's pay.
22 to 40: one week's pay.
41 or over: one and a half weeks' pay.
A week's pay is your average weekly earnings over the 12 weeks before you received your redundancy notice, capped at £751 for redundancies on or after 6 April 2026.
Worked example
Example (composite, not a real person): Priya is 45, has worked for her employer for 12 full years and earns £900 a week gross. Her weekly pay is capped at £751.
Years aged 41 or over: 4 years (ages 41, 42, 43 and 44) x 1.5 = 6 weeks.
Years aged 22 to 40: 8 years x 1 = 8 weeks.
Total: 14 weeks x £751 = £10,514 statutory redundancy pay.
That sits below the £30,000 tax-free threshold. Check your own figure with the GOV.UK redundancy pay calculator, then compare it with your employer's figure. Many employers pay an enhanced amount under the contract or a redundancy policy, so ask for the policy in writing.
Is redundancy pay taxed?
GOV.UK says statutory redundancy pay under £30,000 is not taxable. More broadly, the first £30,000 of a genuine redundancy or termination payment is usually tax-free. Notice pay, pay in lieu of notice, holiday pay, bonuses and unpaid wages are taxed as normal. If your final payslip lumps everything together, ask payroll for a breakdown.
What notice period do I get?
Statutory minimum notice is one week if you have worked between one month and 2 years, then one week for each full year, up to a maximum of 12 weeks. Your contract can give more but not less. You are paid as normal during notice.
Pay in lieu of notice (PILON): your employer ends your job straight away and pays you for the notice period instead. GOV.UK says this can happen if your contract allows it, and employers can offer it even if it does not.
Garden leave: you stay employed and paid for your notice but are told not to work or contact clients. You usually cannot start a new job until it ends.
If you have 2 years' service, you are also entitled to reasonable paid time off during notice to look for work or arrange training. Your employer only has to pay up to 40% of a week's pay for this time off.
What is the redundancy consultation process?
You are entitled to be consulted. That means a genuine discussion about why the redundancy is happening, how people are being selected and whether there are alternatives, such as a different role, reduced hours or voluntary redundancy. A single meeting where the decision is already made is not meaningful consultation.
Collective consultation rules apply when an employer proposes 20 or more redundancies at one establishment within 90 days. Consultation must start at least 30 days before the first dismissal for 20 to 99 redundancies, and at least 45 days before for 100 or more. It takes place with a recognised trade union or elected employee representatives. The employer must also notify the Redundancy Payments Service using form HR1 before consultation starts.
If an employer fails to consult collectively, a tribunal can make a protective award. The Employment Rights Act 2025 doubles the maximum protective award from 90 to 180 days' pay. GOV.UK says you can make a tribunal claim if your employer does not consult properly.
Can my employer select me unfairly?
Selection must be fair and objective. Common criteria include skills, qualifications, attendance records (excluding protected absences such as maternity leave or disability-related sickness) and disciplinary records. GOV.UK says selecting someone because of age, sex, disability or pregnancy could be unfair dismissal. It may also be discrimination under the Equality Act 2010, which protects nine characteristics.
Ask your employer for the selection criteria, your own scores and how the selection pool was decided. You are entitled to understand why you were chosen. If you are pregnant or on maternity, adoption or shared parental leave, you have extra protection, including priority for suitable alternative vacancies.
What if I am offered another job?
Your employer should look for suitable alternative work before confirming redundancy. If you accept a different role, you have the right to a 4-week trial period. If the role turns out to be unsuitable and you leave during the trial, you should normally keep your right to redundancy pay. If you refuse a genuinely suitable offer without good reason, you may lose it.
Should I sign a settlement agreement?
A settlement agreement is a legally binding contract in which you usually accept a payment in return for giving up the right to bring certain claims. Acas says it must be in writing, must list the specific claims it covers, and you must get advice from a relevant independent adviser, such as a solicitor, who is named in the agreement. Employers often contribute towards that legal advice, so ask.
Do not sign on the spot. Check whether the payment is more than your statutory entitlement, how it is taxed and whether it includes an agreed reference. If you want more, the negotiation scripts in our salary negotiation guide work for exit terms too. Your adviser, not an article, should judge the value of any offer.
What can I do if my redundancy feels unfair?
Ask questions in writing. Request the selection criteria, your scores and the business reason.
Appeal. Most employers offer an appeal. Use it, and set out specific points.
Call Acas. The Acas helpline is 0300 123 1100, Monday to Friday, 8am to 6pm.
Start early conciliation before the deadline. You must usually notify Acas before making a tribunal claim. Acas says this pauses your time limit, as long as you notify them within it.
Watch the time limit. For problems on or after 1 October 2026, most claims, including unfair dismissal, must be brought within 6 months minus 1 day.
Redundancy rights UK checklist for your next meeting
Is my role genuinely disappearing or shrinking?
Who is in my selection pool, and what were the criteria and my scores?
Is this individual or collective consultation, and when did it start?
What alternative roles are available, and can I see the list?
Is redundancy pay statutory or enhanced? Can I have the figure in writing?
What is my notice period, and will it be worked, paid in lieu or garden leave?
How much holiday will be paid out, and what date will all payments arrive?
Will I get an agreed reference, and can I use the employee assistance programme after I leave?
If you work in Northern Ireland, check nidirect.gov.uk, as some rules and rates differ.
What to do next
Find your contract and any redundancy policy, and note your exact start date.
Run your figures through the GOV.UK calculator and compare them with your employer's offer.
Take the checklist above to your consultation meeting and ask for answers in writing.
Once the dates are clear, follow our 30-day recovery and job search plan.
When you are ready, browse current UK vacancies on Qamla and set up alerts for your target roles.
Frequently asked questions
How much redundancy pay will I get in the UK?
If you qualify, statutory redundancy pay gives half a week's pay per full year under 22, one week's pay per year aged 22 to 40, and one and a half weeks' pay per year aged 41 or over. Weekly pay is capped at £751 and service at 20 years, so the maximum is £22,530.
Do I get redundancy pay if I have worked less than 2 years?
Not statutory redundancy pay. GOV.UK says you normally need to be an employee with 2 years or more with your current employer. You are still entitled to notice, or pay in lieu, plus any holiday pay you are owed. Your contract or company policy may also offer a redundancy payment, so check it.
Is redundancy pay taxed?
GOV.UK says statutory redundancy pay under £30,000 is not taxable. The first £30,000 of a genuine redundancy or termination payment is usually tax-free. Notice pay, pay in lieu of notice, holiday pay, bonuses and unpaid wages are taxed as normal, so check how your payslip splits each part.
How long is the redundancy consultation period?
There is no fixed minimum for individual consultation, but it must be meaningful. If 20 to 99 redundancies are proposed at one establishment within 90 days, collective consultation must start at least 30 days before the first dismissal. For 100 or more, it is at least 45 days.
Can I be made redundant while on maternity leave?
It can happen, but there is extra legal protection. If your role is redundant during maternity leave, you are generally entitled to be offered a suitable alternative vacancy where one exists, ahead of other colleagues. Selecting you because of pregnancy or maternity is unlawful. Speak to Acas or an adviser early.
How long do I have to challenge a redundancy?
For problems on or after 1 October 2026, Acas says you have 6 months minus 1 day for most employment tribunal claims, including unfair dismissal. You must usually contact Acas for early conciliation first, which pauses the clock if you notify them within the time limit.
How this guide was researched
This guide was written by the Qamla editorial team using the sources listed below. It was last reviewed on the date shown at the top of this page. If you spot an error, email contact@qamla.co.uk.
Sources and further reading
Redundancy: your rights, GOV.UK, accessed 3 November 2026.
Statutory redundancy pay, GOV.UK, accessed 3 November 2026.
Notice periods, GOV.UK, accessed 3 November 2026.
Consultation, GOV.UK, accessed 3 November 2026.
Tax and National Insurance, GOV.UK, accessed 3 November 2026.
Settlement agreements, Acas, accessed 3 November 2026.
Employment tribunal time limits, Acas, accessed 3 November 2026.
Reduction in unfair dismissal qualifying period, Brightmine, accessed 3 November 2026.
Redundancy pay (Northern Ireland), nidirect, accessed 3 November 2026.
This article is general information, not legal advice. Rules and rates change. Check GOV.UK, Acas or a qualified adviser for your situation.
