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- 26th Jun 2026
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Redundancy: what your employer can and cannot legally do
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Facing redundancy is stressful enough without having to figure out whether your employer is doing things by the book. Laura Liddle, Associate Solicitor in the Employment Law Team at Mincoffs Solicitors in Newcastle, explains exactly what your rights are – and what to do if you think they’re being ignored.
Redundancy is one of those words that can land like a gut punch. Whether you’ve seen it coming for a while or it’s come completely out of nowhere, the process that follows can feel overwhelming, especially if you’re not sure what your employer is actually allowed to do. The good news is that UK employment law is clear, and your rights are stronger than you might think…
What qualifies as a genuine redundancy?
A genuine redundancy happens when a business changes its operations and a specific job role is no longer needed. Under UK employment law, this applies when an employer closes the business entirely, shuts down a specific workplace, or has a reduced need for employees to carry out work of a particular kind.
The key question to ask is: what happened to the duties of your role? If your employer makes your position ‘redundant’ and then immediately hires someone else to do exactly the same job under a different title, that redundancy is unlikely to be genuine. However, if the workload is redistributed among remaining staff, or if a restructure genuinely changes the nature of the role, a redundancy can still be legitimate even if some of your old responsibilities live on.
What process must your employer follow?
Your employer cannot simply hand you a letter and send you on your way. Before any final redundancy decision is made, they must follow a legally fair process, and that means formal consultation.
During consultation, your employer is required to explain the business reasons for the proposed changes, discuss how selection decisions will be made, and genuinely consider any alternatives to redundancy. This isn’t a box-ticking exercise; it must be a real, meaningful conversation held over a number of meetings.
If 20 or more people are being made redundant within a 90-day window, additional collective consultation rules apply. This means discussions must take place with a trade union or elected staff representatives, and minimum timescales for the consultation period must be observed.
Failing to follow a fair consultation process can give rise to employment tribunal claims, including for unfair dismissal, so it’s worth understanding what you should be experiencing at each stage.
How is selection for redundancy decided – and what’s off limits?
When an employer needs to reduce headcount, they must first identify which groups of workers are affected and establish a clear ‘selection pool.’ Employees within that pool are then scored using objective, fair, and measurable criteria – often referred to as a ‘scoring matrix.’ Lawful criteria typically include:
- Work performance
- Disciplinary records
- Relevant skills, qualifications, and experience
Certain criteria are strictly unlawful and would result in automatic unfair dismissal. An employer cannot select someone for redundancy based on pregnancy, maternity leave, age, gender, race, disability, or trade union activity. You are also entitled to see your own scoring matrix and to ask questions about how you were evaluated — so don’t be afraid to request it.
What redundancy pay are you entitled to?
If you have worked continuously for your employer for at least two years, you are legally entitled to Statutory Redundancy Pay. This is calculated using a formula based on your age, weekly pay, and length of service:
- Under 22: half a week’s pay for each full year of service
- Age 22 to 40: one week’s pay for each full year of service
- Age 41 and over: one and a half weeks’ pay for each full year of service
There is a cap on length of service at 20 years, and the statutory a maximum weekly pay figure, which is currently £751, applies. Some employers offer enhanced redundancy pay above the statutory minimum, and any redundancy payment is made in addition to your contractual notice pay entitlement.
Does your employer have to offer you an alternative role?
Yes. Employers have a legal duty to take all reasonable steps to consider suitable alternative employment within the business throughout the redundancy process. If a suitable alternative role exists, they must offer it to you, or, if there are multiple candidates, give you the opportunity to interview for it.
If you are on a period of family leave, such as maternity leave or within 18 months of giving birth, adoption leave, shared parental leave, neonatal care leave, or bereaved partner’s paternity leave, you must be given priority when a suitable alternative role is identified.
It’s worth knowing that if you unreasonably turn down a genuine alternative role, you may lose your right to statutory redundancy pay. Whether a role counts as a ‘suitable alternative’ depends on the specifics – including seniority, duties, pay, and hours – so it’s always worth taking advice before making a decision.
What is a settlement agreement and should you sign one?
A settlement agreement is a legally binding contract in which you agree to waive your right to bring claims connected with your employment or its termination, in exchange for a financial payment or enhanced package. They’re relatively common in redundancy situations.
Crucially, for a settlement agreement to be legally valid, you must receive independent legal advice from a qualified professional such as an employment solicitor. This isn’t just a formality – it’s a legal requirement, and it exists to protect you. Your employer will usually contribute towards the cost of this advice. Before you sign anything, make sure you’ve had the chance to understand exactly what you’re agreeing to.
What if you think your redundancy was unfair?
If you believe you were unfairly selected for redundancy – whether due to discrimination, a flawed process, or any other reason – you should act quickly.
Your first step is to raise a formal internal appeal with your employer. The timescale for doing so should be set out in your redundancy termination letter. If the appeal doesn’t resolve things to your satisfaction, you can consider making a formal employment tribunal claim.
Before a tribunal claim can be lodged, you must first contact Acas (the Advisory, Conciliation and Arbitration Service) to begin Early Conciliation – this step is a legal requirement and cannot be skipped.
Time limits are important here. Currently, you have three months less one day from the date of your dismissal to begin the process. From 1st October 2026, this is expected to be extended to six months less one day. Additionally, from 1st January 2027, the qualifying period for unfair dismissal protection will reduce from two years to six months, applying to employees who start on or after 1st July 2026.
How can Mincoffs Solicitors help?
The employment law team at Mincoffs Solicitors in Newcastle can support you at every stage of a redundancy process. From the moment consultation begins, they can advise you on what your employer should be doing, help you understand your selection pool and scoring matrix, and explore whether any alternatives to redundancy should have been considered.
If a redundancy is confirmed, Mincoffs can assist with the appeal process and provide the legally required advice on any settlement agreement — including negotiating on your behalf where needed. If you want to pursue an employment tribunal claim, the team can liaise with Acas, draft your claim, manage case management obligations, and represent you at both preliminary and final hearings.
Redundancy doesn’t have to be something that happens to you without you understanding your rights. Getting the right advice early can make a significant difference to the outcome.
Mincoffs Solicitors, 5 Osborne Terrace, Newcastle upon Tyne, NE2 1RQ
The information in this article is intended as a general guide only and does not constitute legal advice. If you are facing redundancy, please seek independent legal advice from a qualified solicitor.
Rachael Ellis
Head of Content
After gaining a first in her BA Media and Journalism degree at Northumbria University, Rachael worked at Newcastle’s leading regional newspaper with her stories being picked up in national and global newspapers. She spent two very successful years giving a voice to those communities across the North East who otherwise…
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