Employers have the right to make you redundant – but they have to follow a strict set of procedures. Learn more about your rights in our explainer article.

They must be able to justify redundancy as the chosen method for ending your job. They must give you a suitable notice period (or payment in lieu) and an appropriate redundancy payment.

Where possible, they must offer you another, suitable job in the company. And they must let you take time off to look for another job.

What notice period are you entitled to?

When faced with redundancy, you're entitled either to the notice period in your contract or, if longer, to the statutory minimum notice period.

The statutory minimum notice period is based on your length of service. If you've been working for the company for between one month and two years, you get one week. If your tenure has lasted between two and 12 years, you get one week for each year of service. Beyond 12 years, your notice is capped at 12 weeks.

If the employer wants you gone, they can either pay you a lump sum in lieu of service or send you on garden leave. This is where you finish your notice period at home.

Garden leave is a kind of purgatory because you're not doing any work for a company that still legally employs you. This means you can't start work with a new employer until garden leave is over.

What redundancy pay are you entitled to?

If you're an employee and have been working for your employer for more than two years, you're entitled to tax-free statutory redundancy pay.

Like the statutory minimum notice period, this is calculated according to your length of service and is capped – in this case at 20 years.

You can expect to get:

• Half a week's pay for each year of service before the age of 22
• One week's pay for each year of service between the ages of 22 and 41
• One and a half weeks pay for each year after the age of 41

Your weekly pay is figured out by averaging out your weekly earnings for the 12 weeks before you got your redundancy notice.

If you were made redundant on or after 6 April 2023, your weekly pay is capped at £643 and the maximum statutory redundancy pay you can get is £19,290.

You can work out your entitlement using the government's redundancy pay calculator.

What's the difference between redundancy and voluntary redundancy?

You can put yourself forward for redundancy. This is known as "voluntary redundancy".

Your employer doesn't have to offer voluntary redundancy to everyone. However, if you feel they didn't offer it to you because of a protected characteristic – sex, age, disability and so on – it could be an example of workplace discrimination.

Before you opt for voluntary redundancy, make sure you know exactly what redundancy pay is being offered. You need an amount that will cover you in case job-hunting lasts longer than expected.

Finally, make sure that voluntary redundancy won't affect any benefits you're on before putting yourself forward. 

How must your employer consult?

Consultation during the redundancy process is a legal requirement. Employers have to keep workers in the loop about the process and allow them to ask questions and make suggestions.

If more than 20 employees are at risk, there will be a collective consultation. This usually involves the employer consulting with trade union representatives or employees who have been elected to represent those affected.

If collective consultation isn't required, individual consultations have to take place. In this situation, you can have a representative there to support you.

Can you challenge redundancy plans?

Your employer is within their rights to downsize and restructure at will. No tribunal will challenge these top-down decisions.

However, you have the right to challenge the process if you believe it hasn't been carried out fairly or thoroughly. You could have a viable challenge if, for instance, they're unable to justify why redundancies need to be made or have failed to consult with you.

What does the redundancy selection process involve?

By law, employers must fairly select the employees who'll be made redundant. This means justifying why these roles in particular are being lost or replaced. It's against the law to select someone for redundancy because of a protected characteristic under the Equality Act 2010.

Does my employer need to make me another job offer?

Your employer should discuss alternative employment options with you. They don't have to create a new job vacancy for you. However, they should signpost you to suitable vacancies within the business.

If nothing suitable is there, it's time to go on the job trail. Before doing this, make sure you get an answer from your employer about references and time off to attend interviews.

Conclusion

Redundancy is a difficult experience for anyone. Having an experienced employment solicitor on hand to equip you with the facts and fight your corner can make all the difference. It means you're less likely to lose track of the process in the heat of the moment.

Employers are bound by employment law as well as employees. Knowing your rights means a better chance of a fair outcome.

Are you looking for legal guidance relating to redundancy? Here at Milners, we have teams of experienced employment solicitors in Leeds, Harrogate, Pontefract and Darlington. Get in touch to book a free, no-obligation consultation.