What is redundancy?

Redundancy happens when your employer has a genuine business need to remove a job role—not because of your performance, but because the work itself is no longer needed. Your employer doesn't need your job to go away entirely; they can make you redundant from a role even if they hire someone to do the work differently.

Real redundancy: The business closing, the office relocating (and you can't/won't go), the need for fewer staff, or automation replacing the role.

Sham redundancy: Your employer calls it redundancy but actually dismisses you for misconduct, poor performance, or because they don't like you. If it's sham, it's unfair dismissal.

• Consultation: Your employer should consult with you and other potentially affected employees
• Fair selection: If multiple people could be made redundant, selection must be fair and objective
• Redundancy pay: You're entitled to statutory redundancy pay based on age, length of service, and weekly pay
• Notice: Your employer must give you notice (at least 2 weeks if you've worked 2 years)
• Right to appeal: You should be able to appeal the redundancy decision

Like the basic unfair dismissal award, redundancy pay is:

• Under 22: 0.5 week's pay per year of service (max 2 weeks)
• Age 22–40: 1 week's pay per year of service
• Age 41+: 1.5 weeks' pay per year of service (max 20 weeks)

Weekly pay is capped at £645 (April 2026 rate). Example: Age 35, 8 years service, earning £500/week = £4,000 redundancy pay.

If your employer dismisses you as "redundant" but it's actually because of misconduct, poor performance, or discrimination, that's unfair dismissal—and you can claim compensation beyond the statutory redundancy pay.