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Essential points

  • A redundancy is a dismissal that occurs when a role is no longer needed – it has become redundant.
  • Employers should consult with employees when making redundancies if they wish to avoid any dismissals being unfair.
  • Where 20 or more redundancies are planned at one establishment within a 90-day period, employers must follow the collective consultation rules to avoid unfair dismissals and protective awards.
  • Employees under notice of redundancy have the right to time off to look for a new job.
  • All employees selected for redundancy will be entitled to notice pay and those with at least two years’ service will be entitled to a statutory redundancy payment based on their length of service.
  • The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 extended the period of protection for those on Maternity, Adoption or Shared Paternity Leave in a redundancy situation.

The Employment Rights Bill proposes to make changes to collective consultation during redundancy. Keep up to date with the latest on these changes with our tracker of potential law changes. We will update this page once any changes are enforced.

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Disclaimer 

​Please note: While every care has been taken in compiling this content, CIPD cannot be held responsible for any errors or omissions. These notes are not intended to be a substitute for specific legal advice. 

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