Redundancy

Overview

Redundancy should be about the role, not the individual. A fair process must follow redundancy rights acas standards.

Your specific redundancy rights after 2 years of service include a statutory redundancy payment and a longer consultation period.

What is a genuine redundancy in the UK?

• A workplace or team is closing.
• There is a reduced need for work of a particular kind.
• A restructure removes or combines roles.

What are your redundancy rights after 2 years?

• Employers must identify a pool of 'at risk' redundancy rights for employees before choosing individuals.
• Selection criteria should be objective (e.g., skill mix or attendance) rather than subjective opinion.
• Redundancy rights when pregnant are enhanced: you have the right to be offered any suitable alternative vacancy first if your role is made redundant.
• Meaningful redundancy rights acas consultation is required: your employer must meet with you to discuss why you were selected.

Redundancy pay basics

• Statutory redundancy rights after 2 years are the legal minimum your employer must pay.
• If you have redundancy rights under 2 years, you are not entitled to statutory redundancy pay, but you are still entitled to notice pay.
• Some employers offer redundancy rights after 1 year of service through their own internal policies, so always check your contract.
• If you are on a redundancy rights fixed term contract, you have the same rights as permanent staff if your contract is not renewed due to redundancy.

Qualifying Service and Redundancy Pay

• You need two years qualifying service to be eligible for statutory redundancy pay.
• If you have less than 2 years qualifying service, you may still be entitled to notice pay but usually not redundancy pay.
• The qualifying service rules ensure that only longer-term employees receive the statutory redundancy payout.
• Check the redundancy pay Northern Ireland rules if your contract is based there, as legislation may vary.

Common questions