The word lands like a slammed door, and the first instinct is to sign whatever is put in front of you just to make the conversation end. Resist that. Redundancy in the UK is a legal process with rules your employer must follow, and the difference between knowing them and not knowing them can be thousands of pounds and several weeks of paid time. Take a breath, take notes, and sign nothing on the day.
What you are actually entitled to
If you have at least two years' continuous service, you qualify for statutory redundancy pay. The amount depends on your age, length of service and weekly pay, with the weekly figure capped each April - so an older worker with long service receives more per year than a younger one. On top of that, you are owed your contractual or statutory notice, any accrued holiday, and pay for the notice period whether or not you are asked to work it. Your employer must also run a genuine consultation, which means real discussion about alternatives before any decision is final, not a meeting where the outcome is already printed.
- Statutory redundancy pay is tax-free up to £30,000.
- Selection must be fair and objective - being chosen because you raised a grievance or took maternity leave is unlawful under the Equality Act 2010.
- If twenty or more roles are at risk at one site, collective consultation rules apply and the timescales are longer.
Settlement agreements and where to get help
Sometimes you will be offered a settlement agreement - a lump sum, often above the statutory minimum, in exchange for waiving your right to bring a claim. These are legally binding, and you cannot sign one without independent legal advice, which your employer is expected to contribute towards. Do not treat the first number as final. There is usually room to negotiate, particularly on the financial figure and on the wording of any reference, and a calm "I'd like to take advice before responding" costs you nothing.
Use the free expert services
ACAS runs a confidential helpline and clear online guidance on every stage of the process, and Citizens Advice will help you check the maths on what you are owed. gov.uk has a redundancy pay calculator that takes two minutes. The day you are told is the worst day to make decisions; the day after, with the numbers in front of you and a clear head, is when you decide what to accept.