What Is My Entitlement to Redundancy in the UK?

Written by: [AUTHOR NAME], Employment Law Solicitor, Setfords | Published: 5 August 2026 | Last reviewed: 5 August 2026 | Read time: 8 min

Working out your entitlement to redundancy in the UK comes down to two things: whether you qualify for statutory redundancy pay, and how much that pay actually comes to. This guide covers eligibility, how the calculation works, notice periods, tax, and what your employer has to do before making you redundant.

Key takeaways

• You need at least 2 years of continuous service with your employer to qualify for statutory redundancy pay.
• Your payout depends on your age, your length of service, and your weekly pay, capped at £751 a week and 20 years of service.
• The maximum statutory redundancy payment is currently £22,530.
• Statutory redundancy pay is tax-free up to £30,000, alongside any other termination payments.
• You’re entitled to a consultation before being made redundant, and stricter rules apply if 20 or more people are being let go at once.

What is statutory redundancy pay?

Statutory redundancy pay is the legal minimum your employer must pay you if you’re dismissed because your role no longer exists, rather than for any fault of your own. It’s separate from your notice pay and any holiday owed, and it sits on top of them.

Your entitlement to redundancy in the UK depends on your length of service and age, not on how senior you were or what your contract says, unless your contract offers something better than the statutory minimum. Most employees working in Great Britain fall under this same set of rules. Northern Ireland has its own, slightly different figures.

Who qualifies?

You’ll normally qualify for statutory redundancy pay if you’re an employee (rather than a worker or self-employed contractor) and you’ve worked continuously for your employer for at least 2 years.

You won’t get statutory redundancy pay if:

• your employer offers to keep you on, or offers suitable alternative work that you turn down without good reason
• you’re dismissed for misconduct rather than redundancy
• you fall into a small number of excluded categories, including members of the armed forces, police services, and Crown servants

If you’ve been laid off without pay, or on reduced pay, for more than 4 weeks in a row (or more than 6 weeks out of any 13), you may be able to claim redundancy pay even without a formal redundancy process, provided you follow the correct notification steps.

How is it calculated?

Statutory redundancy pay is worked out using three things: your age during each year of service, your length of service, and your weekly pay.

• Half a week’s pay for each full year you were under 22
• One week’s pay for each full year you were 22 or older but under 41
• One and a half week’s pay for each full year you were 41 or older

Length of service is capped at 20 years, and your weekly pay is capped too. For redundancies taking effect on or after 6 April 2026, weekly pay is capped at £751, even if you actually earn more. That puts the maximum possible statutory redundancy payment at £22,530.

A worked example: if you’re 45, earning £800 a week, and have worked for your employer for 10 years, your weekly pay is capped at £751 for the calculation. All 10 years fall in the 1.5-week band, so you’d get 15 weeks’ pay, working out at £11,265.

Notice periods

Separately from redundancy pay, you’re entitled to statutory minimum notice before your employment ends:

• at least 1 week if you’ve been employed between 1 month and 2 years
• 1 week for each year employed, up to 12 years
• 12 weeks if you’ve been employed for 12 years or more

Your contract may give you longer notice than this, but it can’t give you less. Your employer should either let you work your notice on full pay, or pay you in lieu of it, depending on your contract.

Is redundancy pay taxed?

Statutory redundancy pay is tax-free up to a combined total of £30,000, along with any other genuine termination payments. Anything above that threshold is taxable.

Notice pay and any pay in lieu of notice are treated differently and are taxed as normal earnings, as is any outstanding holiday pay. Only the redundancy element itself benefits from the £30,000 exemption.

Your right to consultation

You’re entitled to a consultation with your employer before being made redundant, covering why the role is going and whether there’s an alternative to redundancy. For smaller-scale redundancies (fewer than 20 people), there’s no fixed process your employer has to follow, but a consultation still has to happen.

Collective redundancy rules apply once 20 or more people are being made redundant at the same time. Your employer then has to consult with a trade union representative or an elected employee representative, and there’s a minimum consultation period before any dismissals can take effect:

• 20 to 99 redundancies: at least 30 days
• 100 or more redundancies: at least 45 days

If your employer doesn’t consult properly, starts too late, or skips it altogether, that’s something you can raise at an employment tribunal.

Enhanced redundancy pay

Some employers offer more than the statutory minimum, either as a matter of policy or because it’s written into your contract. This is usually called enhanced or contractual redundancy pay.

There’s no set formula for enhanced pay. It might be a multiple of your statutory entitlement, a fixed number of weeks per year of service, or something else entirely. Check your contract and any staff handbook, since an employer who’s offered enhanced terms before may not be obliged to do so again unless it’s a contractual right.

When redundancy might not be genuine

Redundancy has to be genuine. That means the role itself has to have actually gone, not just the person doing it. If you suspect you were selected because of who you are rather than a genuine reduction in roles, that’s worth challenging.

Signs worth raising with a solicitor include being the only person selected from a team doing the same job, being selected shortly after raising a grievance or taking family leave, or your role being advertised again shortly after your redundancy. These can point to unfair selection or, in the worst cases, disguised unfair dismissal.

Common mistakes to avoid

1. Assuming you’re not entitled to anything under 2 years’ service.
You may still have a contractual notice or pay entitlement even without statutory redundancy pay.

2. Not checking your contract for enhanced terms.
Some employers offer more than the legal minimum, and it’s easy to miss if you don’t ask.

3. Accepting a settlement without checking the figures.
A quick calculation against the statutory formula can reveal whether an offer is fair. To learn more about settlement agreements, read our guide on employment law advice.

4. Missing the 6-month time limit.
You have 6 months from your last working day to claim statutory redundancy pay if your employer hasn’t paid it.

5. Assuming a “redundancy” label makes it genuine.
If the role hasn’t really disappeared, it’s worth getting advice before accepting that at face value.

When to speak to a solicitor

A quick conversation can clarify a lot, especially when redundancy is unexpected. It’s worth speaking to a solicitor if:

• You’ve been told you’re being made redundant and want to check the numbers.
• You’ve been offered a settlement agreement and want it reviewed before signing.
• You think you were selected unfairly, or for the wrong reasons.
• Your employer hasn’t consulted you properly.
• Your role is being advertised again shortly after your redundancy.

Understand your options and your timeline. Talk to a Setfords solicitor when you’re ready, whatever stage you’re at.

FAQs

How many years do I need to work before I’m entitled to redundancy pay?

You need at least 2 years of continuous service with the same employer to qualify for statutory redundancy pay.

What’s the maximum redundancy pay I can get?

Currently £22,530, based on the £751 weekly pay cap and the 20-year service cap, for redundancies taking effect on or after 6 April 2026.

Is redundancy pay taxable?

The first £30,000 is tax-free, combined with any other genuine termination payments. Notice pay and holiday pay are taxed separately as normal earnings.

Can my employer choose who to make redundant?

Not arbitrarily. Selection has to be based on fair, objective criteria applied consistently across everyone doing a similar role, not personal preference.

What if I don’t agree with being selected for redundancy?

Raise it with your employer during the consultation process first. If that doesn’t resolve it, you may have grounds to challenge the process or the selection through an employment tribunal.

About the author

[AUTHOR NAME], Employment Law Solicitor, Setfords

[AUTHOR BIO: one or two sentences on their experience and approach to employment law matters.]

Last reviewed: 5 August 2026.

This article is general information about redundancy entitlement under the law of England and Wales, though the statutory redundancy pay rules described apply across Great Britain. It is not legal advice, and figures such as the weekly pay cap are reviewed each April, so please speak to a qualified employment law solicitor about your specific circumstances.