FAQ
Redundancy questions.
Plain answers.
The questions people ask when they've just been told their role is at risk, answered clearly, without the legal jargon.
Redundancy pay
What is redundancy pay in the UK?
If you've worked for your employer for at least two years and are made redundant, you are legally entitled to statutory redundancy pay. The amount is calculated using your age, your length of service (up to a maximum of 20 years), and your weekly pay (capped at £751 in 2026/27). For each complete year of service you receive: half a week's pay if you were under 22, one week's pay if you were 22–40, and one and a half weeks' pay if you were 41 or over. The first £30,000 is tax-free. Your employer may offer more than the statutory minimum. This is called enhanced redundancy pay.
How does redundancy pay work in the UK?
Your redundancy pay is calculated once your employer confirms your dismissal date. They apply the statutory formula to your complete years of service: your weekly pay (up to the £751 cap) multiplied by an age-based multiplier for each year. For example, if you're 38, have seven years' service, and earn £900 per week: the calculation uses the capped figure of £751. Seven years at age 22–40 = 7 × £751 = £5,257. This is paid alongside your notice pay (a separate entitlement). The full redundancy payment, including any enhanced element, must be paid on or before your final payslip. If your employer fails to pay, you can claim via an employment tribunal.
What is statutory redundancy pay?
Statutory redundancy pay (SRP) is the minimum amount the law requires your employer to pay you if you're made redundant with at least two years' continuous service. It is set by Parliament and rises each April. For 2026/27 the weekly pay cap is £751. The calculation is based on age, service length, and capped weekly pay, not your actual salary, which is why it can feel low for higher earners. Any payment up to £30,000 is tax-free. If your employer offers more, they're offering 'enhanced' pay, still tax-free up to the same threshold.
Settlement agreements
What is a settlement agreement?
A settlement agreement (previously called a compromise agreement) is a legally binding contract between you and your employer that settles any employment claims you might have. You agree not to bring claims, including unfair dismissal or discrimination, to an employment tribunal, and in exchange your employer pays you an agreed sum and usually provides a reference. Settlement agreements are commonly used in redundancy situations, especially when the employer wants certainty. A settlement agreement is only legally valid if you have received independent legal advice from a qualified solicitor before signing, and your employer must contribute to the cost of that advice, typically £500–£1,500 plus VAT. Almost everything in a settlement agreement is negotiable: the payment amount, the reference wording, confidentiality clause scope, and post-termination restrictions.
Without prejudice
What does 'without prejudice' mean?
'Without prejudice' is a legal term that means a conversation or document cannot later be used as evidence in court or tribunal proceedings. Employers use it when they want to have an off-the-record discussion about ending your employment, for example, proposing a settlement figure, without it being held against them if negotiations break down and you later bring a tribunal claim. In redundancy situations you may also hear the term 'protected conversation', which is a statutory version of the same idea introduced by the Enterprise and Regulatory Reform Act 2013. Being asked to have a without prejudice meeting doesn't mean you have to accept anything. You can, and usually should, consult an employment solicitor before or after such a meeting. The conversation itself is confidential, but your right to seek advice about it is not.
Employment lawyers
Do I need an employment solicitor for redundancy?
Not always, but there are situations where specialist advice is strongly recommended. You should speak to an employment solicitor if: you've been offered a settlement agreement (you are legally required to take independent advice before signing), you believe the redundancy process was unfair or that you were selected for discriminatory reasons, your redundancy pay calculation seems wrong, you have valuable share options or a complex benefits package, or you're in a senior role where the financial stakes are high. Many employment solicitors offer a free initial consultation, and if you're signing a settlement agreement your employer will pay a contribution toward your legal fees. The risk of not taking advice is that you sign away valuable rights without realising it.
How do I find an employment solicitor near me?
The safest way to find a regulated employment solicitor is through the Law Society's 'Find a Solicitor' tool at solicitors.lawsociety.org.uk, you can filter by location and employment law specialism. Look for solicitors who are members of the Employment Lawyers Association (ELA). Many will offer a free 30-minute initial call to assess your situation. If you're signing a settlement agreement, your employer may suggest a solicitor, you can use their suggestion or choose your own; the choice is yours. FairEnough's lawyer matching service connects you with regulated employment solicitors who specialise in redundancy.
Your rights
What is statutory redundancy?
Statutory redundancy is the legal right to a redundancy payment and fair process that applies to qualifying employees in the UK. The right to statutory redundancy pay arises when: your employer closes the business, moves the business to a location you cannot reasonably commute to, or has a reduced need for employees to do work of a particular kind. You must have at least two years' continuous employment to qualify. Beyond the payment itself, statutory redundancy rights include: the right to a minimum notice period (one week per year of service, up to 12 weeks), the right to a meaningful consultation process before being dismissed, the right to be offered any suitable alternative vacancy that exists, and the right to appeal the decision.
Can my employer make me redundant without following a proper process?
No, a redundancy must follow a fair process or it risks being ruled an unfair dismissal by an employment tribunal. A fair process requires: a genuine redundancy situation (not a pretext for dismissal), a fairly defined pool of employees at risk, objective and consistently-applied selection criteria, meaningful individual consultation before the decision is finalised (not just a single meeting followed immediately by a letter), consideration of alternatives to redundancy, and any suitable alternative role must be offered. If 20 or more employees are being made redundant at one site within 90 days, collective consultation rules also apply, requiring a minimum 30- or 45-day consultation period and notification to the government. If the process was unfair, you may have a claim for unfair dismissal. The deadline is typically three months minus one day from your dismissal date, and you must go through ACAS Early Conciliation first.
Statutory rates current for 2026/27. Last reviewed 10 August 2026.
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