Navigating your exit?
If your employer offers you a deal to leave, understand the terms before you sign — the reference, the confidentiality clauses, and the payment.
Our guide on negotiating settlement agreementsBeing made redundant can be a shock, but the law requires your employer to follow a fair process and confirm that the redundancy is genuine.
Being made redundant can be a shock, but the law requires your employer to follow a fair process and confirm that the redundancy is genuine. This guide explains your rights.
Your employer must consult with you before a final decision is made. This consultation must be genuine and meaningful.
What it involves: they must explain the business reasons for the proposed redundancies, provide details of the selection process, and properly consider any suggestions you have for avoiding them.
Collective consultation: if 20 or more employees are at risk, strict rules on "collective consultation" apply, and your employer must consult with an employee representative.
Consultation is not just your employer telling you what's going to happen. It's a two-way process. Put any counter-proposals (e.g., for reduced hours, a different role) in writing during the consultation period.
Your employer must use a fair, objective, and non-discriminatory method to select employees for redundancy. It is your right to understand this process and challenge it if you believe it is unfair. Do not simply accept their findings.
Fair criteria: selection should be based on objective and measurable criteria, such as skills, qualifications, disciplinary records, and performance appraisals that have been conducted fairly over time.
Unfair criteria: it is automatically unfair and discriminatory if the selection is based on a protected characteristic (like your age, race, or gender), your working pattern (e.g., being a part-time worker), or because you have asserted a statutory right (e.g., you made a whistleblowing disclosure).
You have the right to scrutinise the selection process. After you have been informed you are at risk, send a formal written request for the following information:
By asking these questions in writing, you force the employer to justify their process and create a paper trail. If they refuse to provide this information or their answers are evasive, it can be powerful evidence that the process was unfair.
Your employer has a legal duty to consider whether there are any suitable alternative roles for you within the company or the wider group.
The offer: you should be offered any suitable alternative role that is available.
Trial period: if you accept an alternative role, you are entitled to a statutory four-week trial period to see if it is suitable.
Don't just wait to be offered a role. Proactively search your company's internal job boards and apply for any suitable vacancies during the consultation period.
You are entitled to a formal notice period once you have been selected for redundancy.
Statutory notice: the legal minimum is one week's notice for each full year you have worked (up to a maximum of 12 weeks).
Contractual notice: your contract may specify a longer notice period. If so, your employer must honour it.
Your notice period only begins when your employer gives you a specific end date in writing. Vague statements that your role is "at risk" do not count as formal notice.
If you have been continuously employed for two or more years, you are entitled to a statutory redundancy payment.
How it's calculated: the amount is based on your age, your length of service, and your weekly pay (which is capped by the government each year).
Enhanced pay: check your contract and staff handbook. You may be entitled to a more generous "enhanced" or "contractual" redundancy payment.
Your employer must provide you with a written statement explaining how your redundancy payment was calculated. Check these figures carefully.
If you believe the redundancy process was a sham, the selection was unfair, or your employer failed to consult with you properly, you can challenge the decision.
Appeal: you should be offered the right to appeal the decision internally. You should do this in writing, clearly stating the grounds for your appeal.
Employment Tribunal: if you are unsuccessful, you may have grounds to bring a claim for unfair dismissal.
If your employer offers you a deal to leave, understand the terms before you sign — the reference, the confidentiality clauses, and the payment.
Our guide on negotiating settlement agreementsFrom time limits to the final hearing — everything you need to prepare an Employment Tribunal claim.
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