2025 UK Employment Law Changes

Redundancy 2 min read

What rights do employees have during redundancy?

Reviewed by David Thornton, Employment Law Specialist Last updated: 1 February 2026
Expert Answer

Employees facing redundancy are not powerless. UK law provides a framework of protections that apply throughout the process — from the moment redundancy is proposed to the final day of employment and beyond. Employers who fail to respect these rights risk tribunal claims and significant financial penalties.

Right to Consultation

Every employee at risk of redundancy has the right to be consulted individually. Consultation must be:

  • Meaningful and genuine — not a rubber-stamping exercise
  • Started while proposals are still at a formative stage
  • An opportunity for the employee to express their views and suggest alternatives

Where 20+ employees face redundancy, collective consultation with employee representatives is also required.

Right to Fair Selection

Employees have the right not to be unfairly selected for redundancy. Selection must be based on objective criteria applied consistently. Selection based on protected characteristics (age, sex, disability, pregnancy, etc.) is unlawful.

Right to Statutory Redundancy Pay

Employees with two or more years' continuous service are entitled to statutory redundancy pay. The amount depends on age, length of service, and weekly pay (subject to a cap).

Right to Notice

Employees are entitled to the statutory or contractual notice period, whichever is longer. The employer can choose to make a payment in lieu of notice instead.

Right to Time Off

Employees under notice of redundancy who have at least two years' service are entitled to reasonable paid time off during working hours to:

  • Look for new employment
  • Arrange training for future employment

The statutory right is to 40% of a week's pay for the entire notice period, but good employers often go further.

Right to a Trial Period in Alternative Employment

If an employee is offered suitable alternative employment, they have the right to a trial period of at least four weeks. If the new role is genuinely unsuitable, they can leave and retain their redundancy pay entitlement.

Right Not to Be Unfairly Dismissed

Even in a genuine redundancy situation, the dismissal can be unfair if the process is flawed. This includes inadequate consultation, unfair selection, and failure to consider alternatives.

Right to Appeal

While there is no specific statutory right to appeal a redundancy decision, best practice — and most tribunal expectations — is that an appeal mechanism should be available.

Our redundancy management service ensures all employee rights are respected throughout the process. Get in touch.

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