Redundancy rights, explained

Redundancy is a form of dismissal. It happens when your employer needs fewer people to do a particular kind of work, or is closing the business or the workplace where you work. Because it is a dismissal, the law expects your employer to have a genuine reason, select people fairly, consult you, give you notice and look for other work you could do. If you are an employee with two years’ continuous service, you are also entitled to statutory redundancy pay.

If the process was not fair, you may be able to challenge it, first through an appeal or grievance and then, if needed, by a claim to an employment tribunal. For employment that ended on or after 1 October 2026, most tribunal claims have a time limit of six months less a day, and you must contact Acas before you claim. This page covers Great Britain (England, Wales and Scotland); Northern Ireland has its own employment law and tribunal system.

Who has redundancy rights

The full set of redundancy rights belongs to employees. Acas points out that redundancy pay and most redundancy protection apply only to people with employee status, so agency workers, casual workers and many people on zero-hours contracts do not get statutory redundancy pay. If you are not sure which you are, see our guide to employment status.

Some rights depend on length of service:

Right	Who gets it
Statutory redundancy pay	Employees with 2 years’ continuous service
Statutory notice	Employees with at least 1 month’s service
Paid time off to look for work	Employees with 2 years’ continuous service
Ordinary unfair dismissal claim	Employees with 2 years’ service (dismissals ending before 1 January 2027)
Protection from discriminatory or automatically unfair selection	From day one

The unfair dismissal qualifying period is about to change

On 2 October 2026 you still need two years’ continuous employment, ending with the effective date of termination, to bring an ordinary unfair dismissal claim (section 108 of the Employment Rights Act 1996). Under the Employment Rights Act 2025 this is due to fall to six months for cases where the effective date of termination is on or after 1 January 2027. The commencement regulations say the new rule applies even if you were dismissed before 1 January 2027, as long as your employment ends on or after that date. If you are working a long notice period, the date your job actually ends matters.

Is it a genuine redundancy?

Acas describes redundancy as usually a dismissal where a role is no longer needed. That commonly happens when an organisation closes, changes the type or number of roles it needs, or relocates. It is not a redundancy if your employer simply wants to replace you with someone else doing the same job.

Before choosing who goes, Acas says employers should look at alternatives, such as changing working hours, asking for volunteers or moving people into suitable vacancies. If your employer skipped this, that can be a point worth raising.

How selection should work

Employers usually group similar roles into a selection pool and score people against criteria. Acas says the criteria should be based on facts that can be measured and free from personal bias. Examples include performance, skills and qualifications, attendance records and disciplinary records. Attendance records must not count absences related to disability, pregnancy or maternity.

Some reasons for selecting someone are automatically unfair or unlawful, whatever your length of service. They include:

• any of the protected characteristics in the Equality Act 2010, such as age, disability, pregnancy, race, religion, sex or sexual orientation;
• trade union membership or acting as a representative;
• working part-time or on a fixed-term contract;
• asserting rights about working time, holidays or the minimum wage;
• whistleblowing.

Criteria can also discriminate indirectly. Acas gives the example that using flexible working as a criterion could amount to sex discrimination. Our guide to discrimination at work explains more.

It can help to ask for your own scores and how they were reached. If they look wrong, you can say so during consultation or in an appeal.

Consultation

Fewer than 20 redundancies

GOV.UK says there are no set rules on how employers consult when making up to 19 redundancies. Acas adds that your employer must still inform and consult you individually before finalising anything, usually including at least one private meeting. Your contract or a collective agreement may give you more.

20 or more redundancies

Where an employer proposes 20 or more redundancies at one establishment within a 90-day period, it must consult a trade union or elected employee representatives. Consultation must start:

• at least 30 days before the first dismissal takes effect, for 20 to 99 redundancies;
• at least 45 days before, for 100 or more.

It must cover ways to avoid redundancies, the reasons for them, and how to reduce the numbers and their effects.

If your employer fails to consult collectively, the union, representatives or affected employees can claim a protective award. Since 6 April 2026 the maximum is 180 days’ pay for each affected employee (it was 90 days before that). Acas notes that no minimum length of service is needed for this claim. The government plans to change the collective consultation threshold in 2027, with no date fixed yet.

Suitable alternative work

If your employer has a suitable vacancy, it should offer it to you. Suitability depends on how similar the work is, the pay, status, hours and location, your skills and your personal circumstances. If you are on maternity or other family leave, your employer must offer you a suitable vacancy if one is available.

You are entitled to a four-week trial period in a new role, which can be extended in writing if you need training. If the job turns out to be unsuitable and you tell your employer within the trial, you keep your right to statutory redundancy pay. If you unreasonably refuse a suitable offer, you can lose it.

Notice, time off and pay

You are entitled to at least the statutory minimum notice, or your contractual notice if that is longer:

• 1 week if you have worked for 1 month to 2 years;
• 1 week for each full year if you have worked 2 to 12 years;
• 12 weeks if you have worked 12 years or more.

Your employer can pay you in lieu of notice if your contract allows it. See our guide to notice periods.

If you have two years’ service, you can take reasonable 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, however much time you take.

Statutory redundancy pay depends on your age, length of service and weekly pay, with a weekly pay cap of £751 for redundancies on or after 6 April 2026. Our redundancy pay guide explains the calculation, enhanced schemes and tax.

If your employer is insolvent, you can apply to the government for redundancy pay, holiday pay, unpaid wages and statutory notice pay.

When a business changes hands

If your job is moving to a new employer because the business or a contract is being transferred, the TUPE rules usually protect you, and a dismissal because of the transfer can be automatically unfair. See our guide to TUPE transfers.

Challenging a redundancy

1. Ask questions during consultation. Ask why your role is affected, who is in the pool, what criteria are used and what your scores are.
2. Appeal. Many employers offer an appeal against a redundancy decision. Put your points in writing.
3. Raise a grievance if something else has gone wrong, such as discrimination. See our guide to grievances and disciplinaries.
4. Contact Acas. Before making most tribunal claims you must notify Acas for early conciliation. This pauses the time limit while it runs.
5. Make a tribunal claim if the dispute is not resolved. See employment tribunal.

Time limits

The law on time limits changed on 1 October 2026. Acas explains that if the problem happened on or after that date, you have six months less a day for most claims, including unfair dismissal and discrimination. If it happened before 1 October 2026, the old three months less a day limit usually applies. Statutory redundancy pay claims already had a six-month limit. In Scotland, the new six-month limit for breach of contract claims in the tribunal starts on 9 November 2026 instead.

Your employer may offer a payment in return for you giving up claims. That is done through a settlement agreement, which is only binding if you have had independent advice from a relevant adviser, such as a solicitor.

What to check in your contract or letter

• The reason given for the redundancy and whether your role is really disappearing.
• The selection pool and criteria, and whether your scores are attached or available.
• Consultation dates and whether you were consulted before a decision was made.
• Your notice period, both statutory and contractual, and the date your employment ends.
• A pay in lieu of notice (PILON) clause if you are told not to work your notice.
• An enhanced or contractual redundancy policy, in your contract, handbook or a collective agreement.
• Any offer of alternative work, its terms and the trial period dates.
• Holiday pay owed on leaving and how it is calculated.
• Restrictive covenants that could affect your next job (see restrictive covenants).
• Appeal rights and the deadline for appealing.
• Any settlement agreement and what claims it asks you to give up.

When to speak to a solicitor

Many redundancies are handled properly and need no legal help. It can help to speak to a solicitor if you think you were selected for a discriminatory reason, the process felt like a way to remove you, you have been offered a settlement agreement, or large sums such as an enhanced package or bonus are involved. A solicitor can look at your own situation and the time limits that apply to you.

Common questions

What makes a redundancy unfair?

A redundancy can be unfair if the job was not genuinely redundant, the selection pool or criteria were unfair, there was no proper consultation, or suitable alternative work was not offered. Selecting someone because of a protected characteristic such as age, sex, pregnancy or disability, or for reasons such as union membership, whistleblowing or being part-time, is unlawful. For dismissals before 1 January 2027 you normally need two years' service to claim ordinary unfair dismissal.

How long does redundancy consultation have to last?

There is no set length if your employer is making fewer than 20 people redundant, but Acas says it must still consult you individually before finalising anything. Where 20 to 99 redundancies are proposed at one establishment within 90 days, collective consultation must start at least 30 days before the first dismissal takes effect. For 100 or more, it is at least 45 days.

Can I refuse another job my employer offers me?

You can, but if the job is suitable and you turn it down unreasonably, you can lose your statutory redundancy pay. Suitability depends on things like how similar the work is, the pay, status, hours and location, and your own circumstances. You are entitled to a four-week trial in a new role, and can leave during it without losing your redundancy pay if the job is not suitable.

What is the time limit for claiming unfair redundancy?

For dismissals where the employment ended on or after 1 October 2026, the time limit for an unfair dismissal claim is six months less a day from the end of your employment. Where it ended before 1 October 2026, the old limit of three months less a day applies. You must notify Acas for early conciliation before you can claim, and doing so pauses the clock.

Do I get paid time off to look for a new job?

If you have been continuously employed for two years or more and you are under notice of redundancy, you are entitled to reasonable time off to look for work or arrange training. Your employer has to pay you for this time, but only up to 40% of a week's pay, however much time you take.

Will the 2027 change to unfair dismissal affect my redundancy?

From 1 January 2027 the qualifying period for unfair dismissal is due to drop from two years to six months, for cases where the effective date of termination is on or after that date. If you are under notice now and your employment ends on or after 1 January 2027, the new rule is due to apply to you even though notice was given earlier.

Sources

1. GOV.UK: Redundancy, your rights checked Fri Oct 02
2. GOV.UK: Redundancy, your rights: consultation checked Fri Oct 02
3. GOV.UK: Redundancy, your rights: suitable alternative employment checked Fri Oct 02
4. GOV.UK: Redundancy, your rights: notice periods checked Fri Oct 02
5. Acas: Your rights during redundancy checked Fri Oct 02
6. Acas: How you're selected for redundancy checked Fri Oct 02
7. Acas: How your employer must consult you (updated 7 April 2026) checked Fri Oct 02
8. Acas: Employment tribunal time limits (updated 1 October 2026) checked Fri Oct 02
9. Trade Union and Labour Relations (Consolidation) Act 1992, section 189 (protective award, maximum 180 days from 6 April 2026) checked Fri Oct 02
10. Employment Rights Act 1996, section 108 (two-year qualifying period) checked Fri Oct 02
11. GOV.UK: Plan to Make Work Pay and Employment Rights Act, timeline update (updated 25 September 2026) checked Fri Oct 02
12. The Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026, SI 2026/559 checked Fri Oct 02
13. SI 2026/954: tribunal time limits extended from three to six months from 1 October 2026 checked Fri Oct 02
14. GOV.UK: Your rights if your employer is insolvent checked Fri Oct 02
15. GOV.UK: Make a claim to an employment tribunal checked Fri Oct 02

This guide is general information about employment law in Great Britain (England, Wales and Scotland). Northern Ireland has its own employment law. It isn't legal advice and doesn't take your circumstances into account.