Employment Law

Redundancy Rights in 2026: Are You Being Treated Fairly?

Your rights when made redundant — statutory redundancy pay, the consultation requirement, collective redundancy rules, selection criteria, alternative employment, and when a redundancy may be unfair.

Published 20 March 2026

Redundancy Rights in 2026: Are You Being Treated Fairly?

Being made redundant is not the same as being dismissed for misconduct, but your employer still has to follow the rules.

Statutory Redundancy Pay

If you have been employed for two or more years, you are entitled to a statutory redundancy payment. The amount depends on your age, your weekly pay (up to a statutory cap — check the current figure using the government's online redundancy calculator at gov.uk), and your length of service. Service is capped at 20 years.

Your Right to Consultation

Your employer is required to consult with you before making you redundant. Where 20 or more redundancies are proposed within 90 days, collective consultation rules apply.

Selection Criteria

If your employer is selecting from a pool of employees, the selection criteria must be objective and applied consistently. Criteria that are discriminatory are unlawful. You have the right to know the criteria that were applied and how you scored against them.

Settlement Agreements in Redundancy

Employers often offer settlement agreements as part of a redundancy process. You are required by law to take independent legal advice on a settlement agreement before signing it. The fee is often covered by your employer as part of the settlement, so it may cost you nothing.

This article provides general legal information only. It is not formal legal advice and does not create a solicitor-client or barrister-client relationship. If you need advice specific to your circumstances, please consult a qualified legal professional.

Need Professional Legal Help?

This guide is for general information only. For advice tailored to your situation, instruct a Direct Access barrister.