Being made redundant: what it means and what to do

What does being made redundant mean?

Being made redundant means your employer no longer needs your role to be done, or is closing the workplace or business, so your job is removed. It is not a judgement on your performance or conduct. It is a dismissal for a specific business reason, and it carries its own set of legal protections and entitlements.

Redundancy is one of the fair reasons for dismissal in UK employment law, but that does not mean every redundancy is handled correctly. It only counts as a genuine redundancy if the need for the role, or the workplace, has actually gone. If your employer is using "redundancy" to remove you personally while the work carries on, that is worth challenging. Ourredundancy rights guide sets out the legal framework in full, and ourredundancy hub is the best starting point if you have just been told and are not sure where to begin.

What am I entitled to if I am made redundant?

You may be entitled to statutory redundancy pay if you have 2 or more years' service, notice or pay in lieu of notice, accrued but untaken holiday pay, a fair consultation process, and in some cases an enhanced package agreed through a settlement agreement. Statutory redundancy pay is capped at £751 a week for 2026/27, up to a maximum of £22,530.

In practice that usually breaks down into: statutory redundancy pay based on your age, length of service and weekly pay; notice, either worked or paid in lieu; holiday pay for any leave you have accrued but not taken; and, depending on your employer and how the exit is handled, anenhanced payment on top of the statutory minimum. Use theredundancy pay calculator to work out your statutory figure in a couple of minutes, then compare it against anything you are offered.

What should I do first?

Check the reason given is genuine, ask your employer for the process and timeline in writing, work out your statutory redundancy pay, and do not sign anything, especially a settlement agreement, before getting independent legal advice. That advice is normally free to you because your employer pays the fee.

1. Check the reason is a genuine redundancy. Is the role, or the workplace, actually disappearing, or does the work look set to carry on under someone else?
2. Ask for the process in writing. Request the selection criteria (if others do the same job), the consultation timeline and the decision date, so you know what to expect and by when.
3. Work out your statutory redundancy pay. Use theredundancy pay calculator so you have a figure to compare any offer against.
4. Do not sign anything before advice. If you are offered asettlement agreement, get it checked by an independent solicitor before you sign. This is a legal requirement for the agreement to be valid, and it is normally free to you.
5. Look after the practical side too. Check what benefits you may be able to claim, and give yourself a moment to process the news. Redundancy is unsettling for most people, and that is normal.

Is my redundancy genuine and fair?

A genuine redundancy needs a real business reason, a fair way of selecting who is affected if others do the same job, and proper consultation before any final decision. Warning signs include no consultation, selection criteria that look personal rather than role-based, or a "redundancy" that is quietly replaced by someone new soon after.

If several people do a similar job and only some are being made redundant, your employer should use fair, objective selection criteria, not a decision based on who they would simply rather keep. You should also be consulted before the decision is finalised, not informed of it as fact. Ourredundancy consultation guidecovers what a fair process looks like in more detail. If something feels off, it is worth having it checked rather than assuming there is nothing you can do.

Should I sign a settlement agreement?

Not without independent legal advice, and the law requires it for the agreement to be valid anyway. A solicitor checks the payment is fair, the tax treatment is correct, and you are not signing away rights you did not need to. This advice is normally paid for by your employer, so it usually costs you nothing.

A settlement agreement is a legal document, and once signed it normally ends your right to bring claims against your employer, including for unfair dismissal. That is exactly why the law says you must take independent legal advice before it becomes binding. Read ourguide to redundancy settlement agreements for what to expect, or go straight to having your own offer reviewed below.

Being made redundant: frequently asked questions