What you're legally entitled to — and what to do if it doesn't feel right.
Redundancy has a specific legal definition in the UK under the Employment Rights Act 1996. It is not simply being dismissed. Redundancy occurs when an employer needs to reduce its workforce because:
This distinction matters enormously, because if the reason for your dismissal doesn't fit one of these three categories, it may not be a genuine redundancy — and that opens up different legal rights.
To be entitled to statutory redundancy pay, you must:
Agency workers, self-employed contractors, and those on zero-hours contracts who are classified as workers (not employees) do not have the right to statutory redundancy pay, though they may have other rights.
Statutory redundancy pay is based on three factors: your age, your length of service, and your weekly pay (capped). The formula gives you a number of "weeks' pay" for each year worked:
Service is capped at 20 years. Weekly pay is capped at £643 (2025/26 figure — this rises each April). So the absolute maximum statutory redundancy payment is 20 × 1.5 × £643 = £19,290.
You are 45 years old and have worked for your employer for 8 years. Your weekly gross pay is £900 (above the cap, so it becomes £643).
Note: if you had any service under age 22 or between 22 and 40, those years would be calculated at a lower multiplier. The calculator handles this automatically when you enter your dates.
On top of redundancy pay, you're entitled to your notice period — either your contractual notice (if longer) or the statutory minimum:
Your employer can ask you to work your notice, or they can pay you instead (called Pay in Lieu of Notice, or PILON). If they send you home immediately without working your notice and without PILON, they are in breach of contract.
For redundancies of fewer than 20 people, there are no rigid consultation rules in terms of time, but employers must still consult "meaningfully" — which means discussing alternatives to redundancy, explaining the selection criteria, and giving you the opportunity to respond.
For 20 or more redundancies within 90 days (collective redundancy), the rules are much stricter:
Failing to follow the collective consultation rules can result in a Protective Award — up to 90 days' pay per employee, payable from the employer or, if they're insolvent, from the National Insurance Fund.
If your employer is making some people redundant but not others doing similar jobs, they must use fair selection criteria and apply them consistently. Common fair criteria include:
Selection that is automatically unfair includes being chosen because of pregnancy, maternity leave, paternity leave, trade union activity, whistleblowing, or exercising statutory rights. If you suspect you were selected for any of these reasons, this is not a redundancy claim — it's an unfair dismissal or discrimination claim, which may have different (and often better) remedies.
You have the right to appeal against your redundancy. The appeal must be meaningful — not just a rubber stamp of the original decision. If your employer doesn't offer an appeal, this is procedural unfairness and will count against them if the matter goes to tribunal.
Some dismissals are dressed up as redundancy when they're really something else — a personal grudge, a desire to get rid of an inconvenient employee, or a poorly managed performance situation. Signs that a redundancy may not be genuine include:
If you have at least two years' service and believe the redundancy was not genuine, you can claim unfair dismissal at an Employment Tribunal. You have three months minus one day from the date of dismissal to bring a claim (you must first attempt ACAS Early Conciliation, which pauses this clock).
Statutory redundancy pay is a minimum floor, not a ceiling. Many employers offer enhanced redundancy packages — higher multiples, no cap on weekly pay, or additional payments. Check your employment contract and any collective bargaining agreements. If your employer has a published redundancy policy that offers more than statutory minimums, they are generally bound by it.
The first £30,000 of a genuine redundancy payment is tax-free. This includes statutory redundancy pay and any enhanced payment above it. Payments above £30,000 are taxed as income in the normal way. Notice pay (whether worked or PILON) is always taxable as earnings.
If your employer has gone into administration or liquidation and cannot pay your redundancy pay, you can claim from the National Insurance Fund via the Redundancy Payments Service. You'll typically receive your statutory redundancy pay, up to 8 weeks of arrears of pay, notice pay, and holiday pay owed — though claims can take months to process.
If you've just been told you're at risk of redundancy, here's what to do: