Understanding Your Rights in a Redundancy
Redundancy is a specific type of dismissal that occurs when your employer needs to reduce their workforce, often due to business closure, changes in work requirements, or financial pressures. Under UK law, redundancy has a precise legal meaning: you are considered redundant if your job no longer exists or there is a diminished need for employees to do your kind of work. The legal definition and your rights as an employee are set out in the Employment Rights Act 1996, which is the main piece of legislation governing redundancy situations.
Your Basic Rights in a Redundancy
If you are facing redundancy, you have several fundamental rights, including:
- The right to a fair process: Your employer must follow a fair and transparent procedure. This includes providing adequate notice, consulting with you (and, where applicable, with employee representatives), and using fair selection criteria.
- The right to redundancy pay: If you have worked for your employer for two years or more, you may be entitled to statutory redundancy pay, the amount of which depends on your age, length of service, and weekly pay.
- The right to be offered suitable alternative employment: Your employer should consider whether there are other roles you could fill before making you redundant.
- The right to time off to look for work: If you have been continuously employed for at least two years, you are entitled to reasonable time off to look for a new job or arrange training.
What Makes a Redundancy Fair?
A fair redundancy process in the UK generally involves:
- Genuine Redundancy Situation: There must be a real business reason for the redundancy, such as a workplace closure, relocation, or reduced need for certain roles.
- Consultation: Employers are legally required to consult with affected employees. For individual redundancies, this means discussing the reasons and any alternatives. For larger redundancies (20 or more employees), collective consultation rules apply.
- Fair Selection Criteria: If only some employees in a group are being made redundant, the employer must use objective, non-discriminatory criteria – such as skills, qualifications, and performance – rather than subjective or biased factors.
- Consideration of Alternatives: Employers should explore ways to avoid redundancies, such as redeployment or reduced hours.
If your employer fails to follow these steps, or if you believe the redundancy is not genuine, you may have grounds to challenge the decision.
What Is Unfair Redundancy – and When Can You Challenge It?
A redundancy may be unfair if:
- The redundancy is not genuine (for example, your employer hires someone else to do your job soon after you leave).
- The selection process was biased or discriminatory (based on age, gender, disability, etc.).
- Proper consultation did not take place.
- Your employer failed to consider suitable alternative roles.
In these cases, you may be able to bring a claim for unfair dismissal. The rules for unfair dismissal overlap with redundancy law, so understanding both is important. For more on this, see our guide on Unfair Dismissal: Your Rights and How to Challenge Being Fired.
Further Reading
If you’d like to understand the basics of redundancy, including how it differs from other forms of dismissal, visit our main page on Redundancy. This provides a broader overview of the law and your rights as an employee in the UK.
Common Reasons Why Redundancy May Be Unfair
When facing redundancy, it’s important to understand that not every dismissal labelled as “redundancy” is fair or lawful. UK employment law sets out clear rules employers must follow to ensure redundancies are genuine and handled correctly. If these rules are not followed, you may have grounds to challenge your dismissal. Below are some of the most common reasons why a redundancy may be considered unfair.
1. Inadequate or Unfair Consultation
Employers are legally required to consult with employees before making them redundant. This means discussing the reasons for redundancy, exploring alternatives, and considering any suggestions you might have. If your employer fails to consult you properly – perhaps by rushing the process, not giving you a chance to respond, or making decisions behind closed doors – this could render the redundancy unfair. The law (Trade Union and Labour Relations (Consolidation) Act 1992) sets out specific consultation requirements, especially where 20 or more redundancies are proposed.
2. Unfair Selection Criteria
Employers must use fair and objective criteria when deciding who to make redundant. Common fair criteria include skills, qualifications, and work performance. However, if the selection process is biased – such as targeting employees based on age, gender, disability, or for having taken maternity leave – it may be discriminatory and therefore unlawful. Similarly, using subjective or vague criteria, or failing to apply the criteria consistently, can also make the process unfair.
3. Failure to Consider Suitable Alternative Employment
Before confirming redundancy, employers must look for suitable alternative roles within the organisation for affected employees. If you were not offered a reasonable alternative position, or weren’t given the chance to try a new role (you are entitled to a four-week trial period in most cases), this could be a sign the redundancy process was not handled properly. For more details on what employers should do, see Redundancy: A guide for employers.
4. Sham Redundancy
Sometimes, what is called a “redundancy” is actually a dismissal for other reasons – such as performance issues or personal conflicts – disguised as redundancy to avoid legal obligations. This is known as a Sham Redundancy. If your role still exists, or if your employer quickly hires someone else to do the same job, this may indicate the redundancy was not genuine. Proving a sham redundancy can be complex, but gathering evidence – such as job adverts for your old position or internal communications – can help your case.
5. Redundancy Used as a Pretext for Unfair Dismissal
Redundancy must be due to a genuine business need, such as a workplace closure, reduced need for a particular role, or company restructuring. If you suspect redundancy is being used as an excuse to dismiss you unfairly, it’s important to understand your broader employment rights. For more on how redundancy differs from other forms of dismissal, see our guide to Unfair Dismissal: Your Rights and How to Challenge Being Fired.
If you believe your redundancy was handled unfairly, it’s crucial to act quickly. Gather all relevant documents, keep detailed notes of conversations, and seek advice from a legal professional or your union. Understanding your rights and the mistakes employers often make is the first step to successfully challenging an unfair redundancy.
Steps to Take If You Believe Your Redundancy Was Unfair
If you believe your redundancy was unfair, taking the right steps early can make a significant difference to your case. Here’s what you should do to protect your rights and strengthen your position:
1. Gather Evidence
Start by collecting all relevant documents and records related to your redundancy. This evidence is crucial if you decide to challenge your dismissal. Key items to gather include:
- Emails and correspondence: Save any emails or letters between you and your employer regarding the redundancy process.
- Meeting notes: Keep notes from any meetings or consultations about your redundancy, especially those where selection criteria or alternatives were discussed.
- Selection criteria: Ask your employer for the criteria used to select employees for redundancy. Compare these to your own situation and performance records.
- Employment contract and policies: Review your employment contract, staff handbook, and your employer’s redundancy policy to check if proper procedures were followed.
If you’re unsure whether your consultation was handled fairly, see our guide on Key Redundancy Consultation Questions for Fair Treatment to help you assess your situation.
2. Raise Your Concerns with Your Employer
Before taking formal action, it’s important to raise your concerns directly with your employer. This gives them a chance to address the issue and may resolve the matter without further steps.
- Informal discussion: Start by speaking to your manager or HR department, explaining why you believe the redundancy is unfair.
- Formal grievance: If informal discussions don’t resolve your concerns, submit a formal grievance in writing. Outline the reasons you believe the redundancy was unfair, referencing any evidence you have collected.
Employers are required by law (Employment Rights Act 1996) to follow a fair redundancy process, including proper consultation and objective selection criteria. Clearly stating where you believe these standards were not met can help your employer understand your position and may lead to a resolution.
3. ACAS Early Conciliation
If you’re unable to resolve the issue directly with your employer, you must notify ACAS (the Advisory, Conciliation and Arbitration Service) before making a tribunal claim. This process is known as early conciliation and is a legal requirement for most employment disputes, including redundancy claims.
- What is early conciliation? ACAS will contact both you and your employer to try to help you reach an agreement without going to tribunal. If an agreement is reached, it will be recorded in a legally binding conciliation agreement (COT3).
- Why is it important? Early conciliation can save time, stress, and legal costs. It’s also a required step before you can proceed to a tribunal in most cases.
You can learn more about how this process works and what to expect by visiting ACAS Early Conciliation.
4. Be Aware of Time Limits
Strict deadlines apply if you want to make a claim to an employment tribunal for unfair redundancy dismissal. In most cases, you must start your claim within three months less one day from the date your employment ended. This time limit is paused while you are going through ACAS early conciliation, but it is crucial to act quickly.
- Missing the deadline: If you miss the time limit, your claim is likely to be rejected, unless there are exceptional circumstances.
- Calculating the deadline: The clock usually starts from your last day of employment, not the date you received notice.
If you think your redundancy may also be an unfair dismissal, you may find it helpful to read Steps to Take Before Making a Claim in our guide on how to win your unfair dismissal case.
Taking these steps promptly and thoroughly will give you the best chance of successfully challenging an unfair redundancy and protecting your rights at work.
Preparing Your Employment Tribunal Claim
Preparing Your Employment Tribunal Claim
If you believe your redundancy was unfair or handled incorrectly, preparing a strong employment tribunal claim is essential. Careful preparation can significantly improve your chances of success. Here’s what you need to know:
Organising Your Evidence
Begin by gathering all relevant documents and information. The tribunal will expect clear evidence to support your claim. Useful evidence may include:
- Your contract of employment and any related documents (such as staff handbooks or redundancy policies).
- Correspondence with your employer about the redundancy process, including emails, letters, and meeting notes.
- Redundancy selection criteria used by your employer, and any scoring or assessments that led to your selection.
- Records of consultation meetings – employers are legally required to consult employees before making redundancies under the Employment Rights Act 1996.
- Pay slips and records of redundancy payments offered or made.
Keep your documents organised and make copies for the tribunal. Clearly label each piece of evidence and create a timeline of events to help the tribunal understand your case.
Preparing Witness Statements
Witness statements can be powerful evidence. If colleagues, union representatives, or others witnessed the redundancy process or can confirm your account, ask them to provide written statements. Witnesses should:
- Clearly state their relationship to you and the employer.
- Describe what they saw or experienced, focusing on facts rather than opinions.
- Sign and date their statements.
Providing strong witness evidence can help demonstrate whether your employer followed a fair procedure.
What the Tribunal Will Look For
The tribunal will consider whether your employer followed the correct legal process for redundancy. Key factors include:
- Genuine redundancy: Was your role truly no longer needed, or was the redundancy a cover for unfair dismissal?
- Fair selection: Did your employer use fair and objective criteria to select you for redundancy?
- Proper consultation: Were you consulted individually and, if applicable, collectively (for 20 or more redundancies)?
- Alternative employment: Did your employer make reasonable efforts to find you another suitable role?
If your employer failed in any of these areas, the tribunal may find the redundancy unfair. For more on how tribunals assess fairness, you may find it helpful to read about Preparing for Your Employment Tribunal Hearing in the context of unfair dismissal cases.
Filing Your Claim
To start your case, you must submit a claim to the employment tribunal using the Form ET1: Claim form for an Employment Tribunal. This is the official form for outlining your complaint and the facts of your case. Make sure to include all relevant details and evidence with your submission. There are strict deadlines – usually within three months less one day from the date your employment ended – so act promptly.
Possible Outcomes
If the tribunal finds in your favour, there are several possible outcomes:
- Compensation: You may be awarded a financial sum to cover lost earnings, unpaid redundancy pay, or other losses.
- Reinstatement: In rare cases, the tribunal may order your employer to give you your job back.
- Re-engagement: The tribunal may order your employer to offer you a comparable role.
The specific outcome will depend on the circumstances of your case and what you are seeking.
Tip: Preparing thoroughly, presenting clear evidence, and understanding what the tribunal will look for are crucial steps to winning your redundancy case. If you’re unsure about any part of the process, consider seeking advice from a legal professional or your trade union.
Other Important Considerations
When facing redundancy, there are several important factors beyond simply challenging the dismissal itself. Understanding your rights and options can help you make informed decisions and strengthen your case if you believe your redundancy is unfair.
Alternatives to Redundancy: Suitable Alternative Employment
Employers are legally required to consider alternatives to redundancy, including offering you suitable alternative employment if possible. This could mean a different role within the organisation that matches your skills and experience. If your employer offers you a suitable alternative position and you unreasonably refuse it, you could lose your right to redundancy pay. However, what counts as “suitable” can depend on factors like pay, job status, location, and working hours.
If you’re unsure whether an alternative job offer is suitable, or what happens if you decide to turn it down, see our detailed guide on Refusing Suitable Alternative Employment.
Redundancy Pay: Your Rights and Timelines
Most employees with at least two years’ continuous service are entitled to statutory redundancy pay. The amount you receive depends on your age, weekly pay, and length of service. Employers must pay redundancy pay promptly – usually on your final working day or soon after your employment ends.
For a full breakdown of what you’re entitled to and when you should be paid, visit our page on Redundancy Pay Eligibility and Timeline. You can also use the official government tool to calculate your statutory redundancy pay based on your personal circumstances.
Off Sick During Redundancy Notice
If you’re off sick during your redundancy notice period, your rights can be affected in several ways. For example, you may still be entitled to notice pay, and your redundancy pay rights remain protected. However, the rules can be complex, especially if you’re receiving Statutory Sick Pay or have been off long-term. For more information on how sickness absence interacts with redundancy, read our guide: Off Sick During Redundancy Notice?.
Claiming Benefits After Redundancy
Losing your job can have a significant financial impact, but you may be eligible for state support. Depending on your circumstances, you could claim Universal Credit, Jobseeker’s Allowance, or other benefits to help cover living costs while you look for new work. For step-by-step advice on accessing support, see our guide on Claiming Benefits After Being Sacked.
Mental Health Support During Redundancy
Redundancy can be stressful and emotionally challenging. It’s important to look after your mental health and know your rights at work if you’re struggling. Support is available from your GP, charities, and workplace schemes. For practical help and advice, see our resource on Mental Health and Work: Your Rights.
Challenging Sham Redundancy
If you suspect your redundancy is not genuine – for example, if your role is still needed or the process wasn’t fair – you may have grounds to challenge it. Learn more about your options and the legal protections in place by reading our section on Challenging Sham Redundancy.
Understanding these considerations can help you make informed choices and ensure your rights are protected throughout the redundancy process.
Additional Resources and Related Topics
If you’re facing redundancy, it’s important to understand all your options and the wider legal context. We’ve gathered a selection of in-depth guides and related topics to help you strengthen your case and make informed decisions throughout the redundancy process.
Explore More on Redundancy and Restructuring
- Understanding Group Layoffs: If your workplace is making 20 or more employees redundant within a 90-day period, different rules apply. Learn about the consultation process, notification requirements, and employee rights in our guide to Collective Redundancies. This resource explains how mass redundancies are handled and what protections exist for affected staff.
- Employer Obligations During Restructuring: Curious about the steps employers must take to ensure redundancies are fair? Our Employer Guide to Making Positions Redundant by Restructuring details the legal process, including fair selection criteria, consultation duties, and alternatives to redundancy. This can help you spot any failures in your employer’s approach.
- NHS Staff Redundancy: If you work for the NHS, redundancy payments are calculated differently, with specific rules under the NHS Terms and Conditions of Service Handbook. To ensure you get the maximum payout, see our NHS Redundancy Calculation: Maximize Your Payout guide for step-by-step advice.
Related Legal Issues and Practical Advice
- Resigning and Redundancy: Sometimes, employees consider resigning during a redundancy process – especially if they don’t have a written contract. Our guide on Resigning Without a Contract explains your legal rights and the potential impact on redundancy pay and notice periods.
- Spotting and Challenging Unfair Practices: Not every redundancy is genuine. If you suspect your dismissal was a cover for unfair treatment, our section on Challenging Sham Redundancy provides additional resources and guidance on identifying sham redundancies and what legal steps you can take.
Making the Most of These Resources
Each of these guides covers specific aspects of redundancy law in the UK, including your rights under the Employment Rights Act 1996, minimum consultation periods, and how to calculate statutory redundancy pay. By exploring these topics, you’ll be better equipped to:
- Recognise when redundancy is being used unfairly
- Understand your employer’s legal obligations
- Take the right steps if you wish to challenge your dismissal
For more tailored advice, consider seeking help from an employment law specialist or your union representative. These resources will help you navigate the redundancy process with confidence and ensure you receive fair treatment.
