What to do when you are made redundant

Being made redundant is disorienting, even when you see it coming. There's a lot to absorb quickly — rights, timelines, money, next steps. This guide walks you through everything in the right order.

Immediate steps — first 24 hours

When you receive a redundancy notice, take these steps before doing anything else:

1. Don't sign anything immediately. You may be asked to sign documents quickly. You have the right to take time to read them properly.
2. Get everything in writing. If you were told verbally, follow up by email asking for written confirmation.
3. Note the date. Employment Tribunal time limits run from specific dates — you'll need this.

Your core redundancy rights

Statutory redundancy pay

If you have at least 2 years of continuous employment, you are entitled to statutory redundancy pay, calculated as:

• Half a week's pay for each full year under age 22
• One week's pay for each full year between 22 and 40
• One and a half weeks' pay for each full year over 41

Weekly pay is capped (£643 per week as of April 2024). Use the government's redundancy pay calculator at gov.uk to check your entitlement.

Notice period

You are entitled to your full contractual notice period (or statutory minimum, whichever is greater) with pay. You cannot be asked to leave immediately without being paid for your notice period.

Accrued holiday pay

Any holiday you've accrued but not taken must be paid out on termination.

Consultation

For individual redundancies, your employer must consult with you before making a final decision. "Meaningful consultation" means they must consider alternatives (redeployment, reduced hours, voluntary redundancy). A decision made before consultation begins is potentially unfair dismissal.

What to check in your redundancy package

• Is the offered redundancy pay at least the statutory minimum?
• Does your contract offer enhanced redundancy pay?
• Are you being offered a settlement agreement? (If so, you should get independent legal advice — this is often paid for by the employer.)
• What happens to your pension contributions?
• Will you receive a reference?

Practical next steps

• Claim Universal Credit or New Style JSA if eligible — do this promptly as payments don't backdate
• Notify HMRC to ensure your tax code is correct for your new situation
• Update your CV while the details of your most recent role are fresh
• Contact your mortgage provider or landlord early if you're worried about payments — most have hardship processes

Is it actually redundancy?

Redundancy is legally defined as a dismissal due to a business need to reduce the workforce — not because of your individual performance or conduct. If you believe you were selected for redundancy unfairly (e.g. because you raised a concern, were pregnant, or as an act of discrimination), this may be unfair dismissal and you should contact ACAS immediately.