What You're Entitled To
Statutory redundancy payment: Calculated as 0.5 week's pay per year (under 22), 1 week's pay (22–40 years), or 1.5 weeks (40+ years), capped at 30 years' service and a weekly maximum of £643 (2026). Total cap: ~£30,000, which is tax-free.
Notice pay: Your employer must give statutory notice (1–12 weeks depending on service), or pay in lieu. During notice, you have the right to time off to look for work.
Holiday pay: Accrued holiday owed (current year plus any rolled-over balance) must be paid in full.
Fair Redundancy Procedure
1. Warn and inform staff. Employers must warn affected employees and unions/reps early enough for consultation (typically 30+ days for large layoffs).
2. Consult genuinely. Listen to suggestions for alternatives (voluntary redundancy, shared hours, retraining). Consultation must be genuine, not a formality.
3. Use fair selection criteria. LIFO (last-in-first-out) is the standard, but employers can use skills, performance, or flexibility. Criteria must not be discriminatory (age, sex, disability, etc.).
4. Offer alternatives. Redeployment to other roles if available. Retraining to fit another role. If you're offered a suitable alternative, you don't lose redundancy rights.