What steps must an employer follow to make a redundancy fair?

To make a redundancy legally fair, an employer must: establish a genuine redundancy situation; use a fair and objective selection process; consult individually with affected employees; consider and offer suitable alternative employment if it exists; give proper statutory notice; and pay statutory redundancy pay to qualifying employees. Failure on any step may make the dismissal unfair. Source: Employment Rights Act 1996, s.98 and s.139; acas.org.uk/redundancy.

How must employees be selected for redundancy?

Selection must use objective, measurable criteria — such as skills, qualifications, attendance, performance, and length of service. Selection based on protected characteristics (age, sex, disability, pregnancy, race, religion, or sexual orientation) is automatically unfair and may also be discriminatory. Selecting an employee because they are pregnant or on maternity leave is automatically unfair dismissal. Source: ERA 1996, s.98 and s.99; acas.org.uk/redundancy.

Does the employer have to consult me individually before making me redundant?

Yes. Employers must consult individually with each at-risk employee before confirming redundancy. This means giving you a genuine opportunity to put your views before a decision is made, considering your input, and exploring whether there is suitable alternative employment for you within the organisation. There is no statutory minimum period for individual consultation (unlike collective redundancy), but it must be meaningful — a 'done deal' without genuine consultation is likely unfair. Source: ERA 1996, s.98; acas.org.uk/redundancy.

What notice am I entitled to during redundancy?

If made redundant, you are entitled to your statutory minimum notice period (one week per complete year of service, minimum one week, maximum twelve weeks under ERA 1996, s.86) — or your contractual notice period if it is longer. Your employer must pay you your full contractual pay during the notice period (or make a payment in lieu of notice). Source: Employment Rights Act 1996, s.86; acas.org.uk/redundancy.

What is collective redundancy and when does it apply?

Collective redundancy rules apply when an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period. The employer must notify the Secretary of State (via HR1 form) before dismissals take effect, and must begin collective consultation at least 45 days before the first dismissal (or 30 days for 20–99 redundancies). If these rules are breached, each affected employee can claim a protective award of up to 180 days' gross pay from 6 April 2026 (doubled from 90 days under ERA 2025). Source: ERA 1996, s.188–198 (as amended by Employment Rights Act 2025); acas.org.uk/redundancy.

Do I have the right to appeal a redundancy decision?

There is no statutory right to appeal a redundancy decision itself, but ACAS strongly recommends that employers offer an appeal stage as part of a fair process. An appeal that is not offered or not genuinely considered can contribute to a finding of unfair dismissal. You have the right to be accompanied at any appeal meeting by a trade union representative or a work colleague. Source: ERA 1996, s.10 (right to be accompanied); acas.org.uk/redundancy.

The UK Redundancy Process Explained

The redundancy process in the UK requires employers to establish a genuine redundancy situation, select employees fairly on objective criteria, consult individually (and collectively if 20 or more are affected), offer suitable alternative roles, give proper notice, and pay statutory redundancy pay to those with at least two years' continuous service. The weekly pay cap for redundancy calculations is £751 from 6 April 2026. A procedurally unfair redundancy may give rise to an employment tribunal claim. Updated June 2026.

Source: Employment Rights Act 1996, s.98 and s.139 (unfair dismissal and redundancy definition); s.86 (notice); s.155–162 (redundancy pay); s.188–198 (collective redundancy); acas.org.uk/redundancy.

What the law says

Redundancy is a specific form of dismissal defined in the Employment Rights Act 1996, section 139. A genuine redundancy situation exists when:

The employer ceases (or intends to cease) carrying on the business in which the employee was employed, or
The employer ceases (or intends to cease) carrying on the business at the place where the employee worked, or
The requirements of the business for employees to carry out work of a particular kind have diminished or ceased.

A dismissal presented as redundancy but where the true reason is different — such as performance or conduct — is not a genuine redundancy and will be unfair. Source: gov.uk/redundancy-your-rights.

Step 1 — Establish a genuine redundancy situation

The starting point is whether there is a genuine business reason for the reduction in headcount. Employers should document:

The business need (e.g. reduction in workload, restructuring, site closure).
Why fewer employees are needed.
What alternatives were considered to avoid redundancy (e.g. reduced hours, redeployment, voluntary redundancy).

ACAS guidance makes clear that employers should genuinely explore alternatives to compulsory redundancy before beginning a selection process. Source: acas.org.uk/redundancy.

Step 2 — Create a fair selection pool and criteria

The employer must decide which employees are at risk — the selection pool — and apply objective criteria to decide who is selected. Selection criteria must be:

Objective and measurable — such as skills, qualifications, performance record, attendance, and disciplinary record.
Applied consistently across all employees in the pool.
Not discriminatory — criteria that disproportionately affect employees sharing a protected characteristic under the Equality Act 2010 must be justified.

Selecting for redundancy on grounds of pregnancy, maternity leave, trade union membership, or assertion of a statutory right is automatically unfair. Source: ERA 1996, s.98–99; Equality Act 2010.

Step 3 — Individual consultation

Every at-risk employee must be consulted individually before a final redundancy decision is made. This means:

Giving the employee advance notice that they are at risk.
Holding at least one face-to-face meeting (in person or by video).
Genuinely considering the employee's representations and any alternative solutions they propose.
Giving the employee reasonable time to respond and to seek advice.

The employee has the right to be accompanied at consultation meetings by a trade union representative or work colleague under Employment Relations Act 1999, s.10. Source: acas.org.uk/redundancy.

Step 4 — Collective consultation (where applicable)

If 20 or more redundancies are proposed at one establishment within any 90-day period, collective consultation rules apply:

20 to 99 redundancies: Minimum 30-day collective consultation period before the first dismissal.
100 or more redundancies: Minimum 45-day collective consultation period.
The employer must notify the Redundancy Payments Service (via form HR1) before dismissals begin.
Consultation must be with appropriate employee representatives — trade union representatives or elected workplace representatives.

From 6 April 2026, the maximum protective award for failure to comply with collective consultation obligations is 180 days' gross pay per affected employee (doubled from 90 days by the Employment Rights Act 2025). Source: ERA 1996, s.188–198 (as amended); acas.org.uk/redundancy.

Step 5 — Consider suitable alternative employment

Before confirming redundancy, employers must consider whether any suitable alternative role exists elsewhere in the organisation. The employee has the right to a four-week trial period in a new role to assess suitability without losing redundancy pay rights. Refusing an unsuitable alternative is reasonable; refusing a clearly suitable alternative without good reason may disentitle the employee to statutory redundancy pay. Source: ERA 1996, s.141; acas.org.uk/redundancy.

Step 6 — Notice and final pay

An employee confirmed as redundant is entitled to:

Statutory minimum notice: One week per complete year of service (minimum one week after one month's service, maximum 12 weeks) under ERA 1996, s.86 — or contractual notice if longer.
Full pay during notice: Unless the contract includes a PILON clause, the employee works their notice at full contractual pay.
Statutory redundancy pay: For employees with at least two years' continuous service — calculated on age, service, and weekly pay capped at £751 from 6 April 2026.
Accrued unpaid holiday pay.

Use the free statutory redundancy pay calculator to calculate the statutory entitlement.

Calculate your redundancy pay

The statutory redundancy pay calculator takes your age, years of service, and weekly pay and produces the statutory minimum entitlement, with the £751 weekly pay cap applied automatically.

Frequently asked questions

See the FAQ below. For individual redundancy situations, see ACAS or call the ACAS helpline on 0300 123 1100.

Back to redundancy rights.