Make a role redundant in United Kingdom, the right way.
Answer a few questions and the toolkit builds your full evidence pack as you go — the exact figures, the letters and the records that prove you followed a proper process.
England · Scotland · Wales — grounded in the Employment Rights Act 1996 & ACAS guidance. (Northern Ireland law differs.)
Statutory redundancy pay, notice and holiday — worked out for the person’s age, service and a week’s pay.
The consultation letter, records and decision — drafted for your situation, ready to send. Not a checklist.
Save your plan, tick off each step with dates and evidence — proof you ran a fair process.
AI is reshaping who works — we track it daily
Redundancy, done right — for UK employers
Making a role redundant is a legal process, not just a payment. Get the steps out of order — most commonly, deciding before you consult — and even a genuine redundancy can become an unfair dismissal. This free AI toolkit walks you through a compliant redundancy for your exact situation and builds the evidence pack — the letters, records and figures — that shows you followed the process.
The redundancy process, step by step
- Business case — record the operational reason the role is no longer needed: the need for work of a particular kind has ceased or diminished, or the workplace is closing (about the role, not the person).
- Coverage — check qualifying service, and your head count. If you are proposing 20 or more redundancies at one establishment within 90 days, collective consultation and an HR1 filing are triggered (see below).
- Selection — if you are cutting some of several similar roles, set fair, objective selection criteria and a proper pool before names.
- Consultation — consult meaningfully with each affected employee, in good time and before any decision is made, and genuinely invite a response.
- Consideration — weigh what they raise, and record it.
- Suitable alternative employment — search for other suitable work in the business; an employee who takes it has a statutory 4-week trial period without losing their redundancy rights.
- Decision — decide only after consultation is complete.
- Notice & final pay — give written notice, then notice pay, redundancy pay and any accrued holiday, and offer the right to appeal.
Statutory redundancy pay
Statutory redundancy pay is worked out from age, length of service and a week’s pay. For each full year of continuous service you count the multiplier for the age band you were in during that year:
| Age during each year of service | Weeks’ pay per full year |
|---|---|
| Under 22 | Half a week's pay per full year |
| 22 to 40 | One week's pay per full year |
| 41 and over | One and a half weeks' pay per full year |
Note: statutory redundancy pay is only due after 2 or more years’ continuous service. A maximum of 20 years of service count (from the date of dismissal, working backwards). A week’s pay is capped at £751 (from 6 April 2026), so the maximum statutory redundancy payment is £22,530. Statutory redundancy pay is tax-free. Your contract may provide more.
Statutory notice periods
| Length of continuous service | Minimum notice |
|---|---|
| 1 month to 2 years | 1 week |
| 2 to 12 years | 1 week per full year |
| 12 years or more | 12 weeks (capped) |
This is the statutory minimum — the contract of employment may give more, but never less. Notice pay in lieu (PILON) is fully taxable.
Larger redundancies (collective consultation)
Extra duties apply when you propose 20 or more redundancies at one establishment within any 90-day period:
- 20 to 99 redundancies — consult employee representatives at least 30 days before the first dismissal takes effect.
- 100 or more redundancies — consult at least 45 days before the first dismissal takes effect.
- Notify the government — in both cases, notify the Redundancy Payments Service on form HR1 before any dismissals. Failing to file HR1 is a criminal offence.
Failure to collectively consult can lead to a protective award of up to 180 days’ pay per affected employee. For a single redundancy, collective consultation does not apply — but you must still consult that individual before deciding.
Common questions
What makes a redundancy “genuine”?
The need for employees to do work of a particular kind must have ceased or diminished, or the workplace must be closing. It has to be about the role, not the person. If the real reason is something else, it is not a genuine redundancy and can be an unfair dismissal even if the pay is right.
How much statutory redundancy pay is due?
Half a week’s pay for each full year under 22, one week’s pay for each full year aged 22 to 40, and one and a half weeks’ pay for each full year aged 41 and over. A maximum of 20 years count, a week’s pay is capped at £751, and the maximum statutory payment is £22,530. It is tax-free and requires at least 2 years’ continuous service.
When must consultation happen?
Before the decision is final. “We’ve decided, here’s your letter” is not consultation and is the most common reason employers lose these cases at tribunal.
Can I make someone redundant to remove a poor performer?
No. If the real reason is performance, conduct or a protected characteristic, it is not a genuine redundancy and is likely to be automatically unfair or discriminatory. Poor performance is a separate process — get advice before you act.
Nations note: England, Scotland and Wales follow the Employment Rights Act 1996 and the figures above. Northern Ireland has separate redundancy law and different money limits — check nidirect. If in doubt, contact ACAS at acas.org.uk or on 0300 123 1100.