Facing redundancy? Start here.

Is a restructure the same as redundancy?

Not always. Legally, redundancy means your employer's need for work of your kind has ceased or diminished (section 139, Employment Rights Act 1996). A restructure only counts when your role genuinely disappears; if you are dismissed to make way for a reorganisation where the work continues, that may be "some other substantial reason" instead, with different rights. You can also be "bumped" out of a role that still exists, and if you are moved to a new role you have a four-week statutory trial period (section 138) to reject it without losing your redundancy pay. Check what counts as genuine redundancy and what a fair process looks like below.

Which of these is you?

• My role is "at risk" but nothing is decided
• Consultation has started
• I have been selected for redundancy
• I have been offered voluntary redundancy
• I have been offered a settlement agreement
• I have under 2 years’ service
• I am pregnant or on maternity leave
• I am over 50 and thinking about my pension
• I am on long-term sick leave
• My employer is being sold or outsourced (TUPE)
• I am working my notice period
• I have been put on a PIPGuide coming soon
• I think I am being discriminated against

What to do if you are being made redundant

If you have been told your role is at risk, do not sign anything immediately. First, confirm it is a genuine redundancy and ask for the selection criteria and consultation timeline in writing. Second, work out your statutory redundancy pay so you know your minimum. Third, if you are offered a settlement agreement, take independent legal advice before signing — it is a legal requirement for the agreement to be valid, and it is normally free to you because your employer pays the fee.

What is genuine redundancy in the UK?

Genuine redundancy arises when an employer needs to reduce its workforce because a business is closing, a workplace is relocating, or fewer employees are needed for a particular kind of work. The role — not the person — must be the reason for the dismissal. If you are facing redundancy now, our free settlement calculator gives an indicative range based on your salary, age, and length of service.

• The business is closing down completely
• The workplace is closing or relocating
• The business needs fewer employees to do work of a particular kind
• Restructuring means your role no longer exists

What are your statutory rights when made redundant?

Employees with at least two years of continuous service are entitled to statutory redundancy pay, calculated using age-weighted multipliers applied to weekly pay up to £751 (2026/27). Separately, you are entitled to a statutory notice period — a minimum of one week for each year of employment, up to 12 weeks. Your contract may provide more generous terms than these statutory floors.

What does a fair redundancy process look like?

A fair redundancy process has four core elements: meaningful individual consultation, objective and consistently applied selection criteria, genuine consideration of alternative roles, and a right to appeal. If your employer skipped any of these steps, the redundancy may be procedurally unfair — which strengthens your position in settlement negotiations. Read the step-by-step redundancy process and what consultation must involve.

1. Consultation: individual consultation to discuss the redundancy, alternatives, and selection criteria
2. Selection criteria: fair and objective criteria applied consistently (not based on protected characteristics)
3. Alternative employment: consideration of suitable alternative roles within the organisation
4. Right to appeal: opportunity to appeal the redundancy decision

What can a settlement agreement include in a redundancy situation?

Many employers offer redundancy packages that go beyond the statutory minimum, and these are almost always delivered through a settlement agreement. The agreement locks in the enhanced terms, adds confidentiality obligations, and waives further claims — making it the vehicle where the negotiable money actually lives. Start with redundancy settlement agreements explained.

• Enhanced redundancy pay above statutory minimum
• Payment in lieu of notice (PILON)
• Ex-gratia payments (potentially tax-free up to £30,000)
• Continuation of benefits (healthcare, company car)
• Agreed reference wording
• Legal fees contribution for advice
• Outplacement support

When might a redundancy be unfair or not genuine?

A redundancy is not genuine if the real reason for dismissal is something other than a reduced need for workers. Common warning signs include the role being immediately backfilled, selection based on protected characteristics, or a rushed process with no real consultation. These failures can support an unfair dismissal claim — or at minimum improve your negotiating position on the settlement. See unfair dismissal and settlement agreements.

Under 2 years' service: what changes?

With under two years' continuous service you do not qualify for statutory redundancy pay and usually cannot claim ordinary unfair dismissal. You are still entitled to your notice (worked or paid in lieu), accrued holiday, and a fair application of any contractual scheme, and claims with no service requirement — discrimination, whistleblowing, unpaid wages — still apply. If you have been offered a settlement agreement despite short service, that usually signals your employer wants certainty; the offer is often negotiable. Read the full claim-by-claim breakdown for under 2 years' service.

Redundancy while pregnant or on maternity leave

You can be made redundant while pregnant or on maternity leave, but you have priority rights: under regulation 10 MAPLE 1999, extended by the Protection from Redundancy (Pregnancy and Family Leave) Act 2023, you must be OFFERED any suitable alternative vacancy ahead of colleagues, not just invited to apply. The protection runs from when you tell your employer about the pregnancy until 18 months after the birth. Selection because of pregnancy or maternity is automatically unfair and discriminatory. Take advice before signing anything. Read the full guide on redundancy while pregnant or on maternity leave, including a checker for whether you are in the protected period.

Over 50: pension and package interactions

The age-weighted statutory formula gives 1.5 weeks' pay for each full year worked from age 41, so longer-serving older employees have the largest statutory entitlements. Check how the package interacts with your pension: some schemes allow early access or employer-funded top-ups on redundancy, and how an ex-gratia sum is structured can change the tax position. Ask for the pension figures in writing before you sign a settlement agreement.

Business being sold or outsourced (TUPE)?

If your employer's business (or your part of it) transfers to another company, TUPE protects your contract and continuity of service. A dismissal where the transfer itself is the reason is automatically unfair; a genuine redundancy for an economic, technical or organisational reason can still be fair. If you are offered a settlement agreement around a transfer, the waiver needs careful review because claims can lie against both old and new employer.

Explore your redundancy

Redundancy by sector

Redundancy schemes and terms differ by sector. Find guidance for yours.

Check your council's own published redundancy policy →

Redundancy at a specific employer

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Redundancy FAQs