Overview of Your Employer's Obligations

Author: Paul Geraghty

The redundancy process is extremely tightly regulated. There are strict rules on how your employer should conduct the redundancy process at every stage. Violation of those rules can lead to legal action and compensation being awarded to the aggrieved employees.

If you're concerned that your employer may not be following the correct procedures, you can check whether your rights are being respected using our free Redundancy Rights Checker.

Redundancy Selection and Consultation

If the redundancy involves more than 20 people, it is called a collective redundancy. Special conditions apply to collective redundancies. The employer must notify the government and must consult with employees or their representatives for specified lengths of time before the redundancies actually take place. These are 30 days if the redundancy affects between 20 and 99 workers in total and 90 days if the redundancy affects more than that.

Your employer is required to consult you about the upcoming redundancy. This means there should, at a minimum, be a private meeting in which the organisation’s managers speak to you individually. There may also be collective consultation.

If you are being made redundant, the employer is required to explain to you why the redundancy is occurring, and what the selection criteria were (if not all employees are being made redundant). These selection criteria must be objectively-based. That means they must be grounded in something concrete and measurable. It is not an acceptable practice for an employer to just pick out his least favourite employees for redundancy.

There should also be some form of appeal procedure for those who believe they have been wrongly selected for redundancy.

Alternatives to Redundancy

The employer is required to consider alternatives to redundancy, such as offering you comparable work elsewhere within the organisation, including within other affiliated companies if the company is part of a corporate group. When you accept an alternative job offer from your employer, you are entitled to a trial period of at least four weeks to help you decide if the new job is suitable. If you leave during this period, you are retain your rights to Statutory Redundancy Pay.

If you or your representatives suggest alternatives to redundancy yourselves, the employer is required to consider them.

Redundancy Rights Checker

Answer a few questions about your situation and find out whether your redundancy is fair and legal. Get clear guidance on your rights in under two minutes.

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Redundancy Payments

The employer is obligated to provide a lump sum payment to anyone with more than 2 years of continuous service. A minimum of how much this payment should be is prescribed by law and is based on the length of service, age and weekly pay of anyone affected by the redundancy. This minimum amount is called Statutory Redundancy Pay (SRP). It is possible that the employer, through the contract of employment, is obligated to provide more generous treatment than this. This is called non-statutory redundancy pay.

All employees being made redundant should be provided with a written statement explaining how much redundancy pay they are entitled to and how this was worked out.

Your situation may be slightly different. ask a question below ↓ and our editorial team will reply with our advice.

Notice Period

The employer is required to provide a period of notice to all employees affected by the redundancy or pay in lieu of notice (PILON). This notice period should be one week for each year of continuous service with the company or organisation. If the employee has been with the organisation for more than one month but not yet a full year, he or she is still entitled to at least one week’s notice. This amount of notice is the statutory minimum. It is possible that your contract of employment provides for a longer notice period.

During the notice period, the employer is required to provide the employees who are due to be made redundant with “reasonable” time off at full pay to look for other work or to retrain.

If you leave to take a new job during the notice period, you may lose your right to Statutory Redundancy Pay.

Employer Obligations During Redundancy – Conclusion

The complexities of the law relating to redundancy can be confusing for all concerned. As violations of proper procedure can be punished with financial penalties, however, it is certainly worth researching the employer’s obligations in detail.

The Next Step

Now that you have read through the advice above, you might want to put it into practice. Our Redundancy Rights Checker lets you answer a few questions about your situation and find out whether your redundancy is fair and legal. Get clear guidance on your rights in under two minutes. Try it now →

Showing 20 of 91 questions

Ask Redundancy Expert a Question

Zee 30/03/2021 at 5:51 pm

I had a letter and online meeting to advise me I was at risk of redundancy back in September. There was collective for 30 days and then individual consultation. In the former it simply seemed we hear you have questions but we will discuss them in individuals, this is going ahead so let's get on with it - at least that was the message I had from the rep. In the individual I was instantly being steered towards a much lower position, I explained my skills and wanted to apply for another which would be challenge but I could cope with and learn and offered compromise to get support learning from company to gain qualification in exchange for golden handcuffs (length of time I must work for or if leave early pay back for training) and to not get pay of new post till I'm fully trained. I then had to be interviewed for both jobs. I was told I cannot do one (the lesser position) remotely (working from home during COVID due to being CV) and the other (the better position) not successful in interview. In feedback after interviews I asked but they wouldn't tell me how many colleagues were interviewed for this job, this was a new position which would do 3/4 of what I did up till now. In the meantime someone else left and I suggested that I could continue to do the majority task of my role plus cover tasks of the person who left. They happily agreed but offered me to reduce wages by a third. I'm finding out that it is too much for one person given that there are snr position which are also changing and it is likely that there will be push for me to do more - it is already full on. We agreed I will do a trial to do all the tasks and keep my original wages.
4 week period is ending tomorrow and the only written comms (incl emails and letters) I've had was to tell me I'm at risk, and invites to meetings. They asked me for a JD for the job I'm trialling!

My questions are:
- do they have to tell me if others /how many colleagues applied for position they interviewed and rejected me for? I had feeling that they just flung abbreviations at me knowing I don't have formal qualification and will not be ale to answer well.
- should they have given me more in written comms?
- is it requirement to end the redundancy consultation and then start trial and should this have been put in writing with trial end date, JD etc?

Jay 17/03/2021 at 9:34 am

My employer announced a large number of branch closures last november affecting a few hundred employees. In the subsequent weeks it then announced a small number if additional branch closures. The first large number of closures have now been completed but the colleagues are being told they HAVE to work their notice period through redeployment to branches that are remaining open and not receive PILON.
The branches that fall in the small number of closures subsequently announced have all been told their last date of employment will be the day their store closes and they will be paid PILON. Are they allowed to do this?

CG 07/01/2021 at 12:11 pm

I went through consultation for redundancy and ended up accepting reduced hours for my current role but was given an 8 week trial period whereby I could still take redundancy.
I am still in that trial period and have now asked for redundancy but have been told that it is now on hold as my business is closed due to covid and that redundancy requests and payments will not be made until the business reopens. I had not been told that the trial period had been put on hold and am keen to take my redundancy now and for things to be finalised.
Is this legal? Can they delay redundancy?

Frank 18/11/2020 at 9:58 am

My employer is offering voluntary packages above statutory minimum and if it doesn't get enough of the right volunteers, will move to involuntary selection where it will only pay statutory minimum terms. The company says it does not have to accept my request for voluntary, but can still make me involuntarily redundant. This sounds like a ruse to flush out those who want to leave while only paying out the minimum. Are they allowed to do this ?

Qwerty 29/09/2020 at 10:08 am

Can an employer offer enhanced redundancy to some employees and not others?

Danni 26/08/2020 at 10:46 am

Do you have to pay back spent A/L when being made redundant?

Spike 24/07/2020 at 2:51 pm

I am 76yrs old and work 2days a week if I take redundancy will it be calculated the same as a younger employee.

Weeny 20/07/2020 at 12:10 pm

SJ May 2020: It appears your Company is pulling a fast one. I recommend contacting ACAS as it feels as though they should be terminating your employment due to the position being Redundant. They may consider that they cannot afford to pay you redundancy (in which case, they can apply to the Redundancy Payments Service for financial assistance. This is not an excuse not to follow correct procedure with you

Weeny 20/07/2020 at 12:03 pm

Coops. PS, I do not believe that PILON will mean notice pay is treated any differently for Tax/NI (than if the notice was paid week-by-week).

Weeny 20/07/2020 at 12:01 pm

Coops. I would imagine your son's company are taking this action as, if they leave him furloughed for the whole of his notice period, they will be able to reclaim the relevant % back from HMRC for the Job Retention Scheme. If they PILON, they will only be able to claim up to the maximum amount for that particular week. PILON necessitates you removing someone from your payroll as soon as PILON is paid. You can only claim against CJRS whilst someone remains on your payroll. At least, that is my understanding.

Coops 03/07/2020 at 11:37 am

My son has been on furlough and now he's been made redundant. He's been given 6 weeks notice and they will pay him 100% of his wage, plus the usual redundancy payments and holidays. I advised him to see if they would pay him PILON, so he gets that 6 weeks pay tax free and he can then get another job. He emailed his company to ask and they said no, without giving a reason. Are they compelled to give him PILON. If not, why would a com[any choose not to? I have wondered if it's because they are still getting furlough pay during his 6 weeks notice and they may lose it if they give him PILON. But the furlough detail on this seems vague?

Madam L 09/06/2020 at 3:38 pm

My husband has been made redundant and it has been written in a letter confirming what redundancy they will pay him. There are now rumours that the company won’t be paying .... are the company obligated to pay it as it was written in a letter ?

SJ 02/05/2020 at 2:17 am

I have been contacted by my employer who has given me a notice of termination of employment. This is on the basis that due to Coronavirus the company is going through financial difficulty. They have advised me that I am not entitled to redundancy as I am not being made redundant but being terminated. They have confirmed that this is not as a result of any bad performance, simply market issues.

I have worked for the same company for 16 years and have always received glowing annual reviews and there has never been an issue with my work, it is just that the work has decreased significantly.

Could you please let me know whether I am in fact eligible for a payment.

Thank you

Simon 02/03/2020 at 10:26 am

I was made redundant at the end of 2019. What are my previous employer's obligations as far as offering me any potential suitable roles after I have left? A friend advised me that they are obliged to offer me all available roles for 6 months after my departure. Is this correct?
thank yo

Bevvy 01/02/2020 at 9:02 am

I am currently being made redundant after 22years of service .My terms and conditions state that a redundancy enhancement payment will be paid on age and length of service. It goes from 18 - 25 years - 5 years service plus 25% up to over 51 years -10 years service plus 70%.However they are now refusing to honor the terms saying ,the payments are out of date and go against the Equality act . They are offering everyone only 5%. Is the law on their side?
Cand they do this?

Victoria 21/06/2019 at 3:54 pm

I was made redundant recently. I do not contest my redundancy, however i do contest the treatment. Other employees were offered PILON, when i was not - I received this once challenged. Some employees were paid up and until the leave date stated by the organisation - I am being denied this. Some employees were able to have their redundancy pro rated - i am being denied this. I had to cancel holiday i had previously booked before being made redundant due to not wanting to owe holiday pay - do i have any rights surrounding this issue? Is there any case law detailing the need for consistency among employees during collective redundancies? Is my end date the date provided by the organisation when making me redundant or is it the actual date i left?

Mandy W 24/04/2019 at 4:24 pm

Hi

I was made redundant on the 2nd of April I have my redundancy letter payslip and P45. My money is due to go into my bank on 30th April. My Ex company is now saying I deleted quotes from my system which is untrue and are suspending my payment. I have only been working there for 3 months after the company restarted after going insolvent. I was the only one made redundant and there is now someone else doing my job. A can they legally hold onto my payment and B was I wrongly made redundant.

Crakzy 30/01/2019 at 8:33 pm

Meade redundant 14/01/19 ask several times put in writing need redundancy notice in writing tomorrow is my last day if still don’t get in writing, do I go in next day

Doc 07/10/2018 at 2:37 pm

Hi , what an informative site this is. I have just been advised my role is to be replaced with a similar role but encompassing more staff at a close by site. a new title but largely similar, I am advised i can apply, but my role is to be made redundant. over the last five yesrs i have developed severe hearing difficulties which have been making work hard, so it could be timely, however at 62 it doesnt bode well for future employment.The co offer is two weeks pay per year, The question is, should they considerer enhancing the offer due to my situation? I am pretty sure that if i appliied for the new role they will pick a younger person, where does that leave me ?

Lucy 04/10/2018 at 4:16 pm

I am being made redundant tommorrow after 21 years service. I have been told that I will be paid the statuatory amount and that it will be paid 30 days after I have been made redundant. Is this correct? I thought that redundancy payment was paid when you actually left. The company that I work for has cash flow problems.

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