What to Do If You’re Made Redundant

Last updated: 3 August 2025

Step 1: Understand What Redundancy Means

Redundancy happens when your employer no longer needs your role. It’s not the same as being dismissed for misconduct or performance. Redundancy can result from business closure, downsizing, or restructuring. Your employer must follow a fair process when selecting who is made redundant.

Step 2: Know Your Legal Rights

If you’ve been employed for at least 2 years, you’re entitled to certain legal rights under UK employment law, including:

  • Statutory redundancy pay (depending on age and length of service)
  • A notice period (or pay in lieu of notice)
  • Any outstanding holiday pay
  • Time off to look for a new job

Step 3: Calculate Your Redundancy Pay

Statutory redundancy pay is calculated based on your age, weekly pay (up to a legal cap), and how long you’ve worked for your employer:

  • 0.5 week’s pay for each year under age 22
  • 1 week’s pay for each year between 22 and 40
  • 1.5 week’s pay for each year aged 41 and over

You can use the government’s calculator to work out what you’re owed: Redundancy Pay Calculator.

Step 4: Review Your Final Pay

Your final pay should include redundancy pay (if eligible), any unused holiday, and notice pay. Double-check your final payslip and ask for a written breakdown if anything is unclear. If your employer can’t pay, you may be able to claim from the government’s Redundancy Payments Service.

Step 5: Check for Additional Support

You might be entitled to more than just statutory pay — for example, if your contract includes enhanced redundancy terms. Also check if your employer offers help with job hunting, references, or retraining.

Step 6: Apply for Benefits or Universal Credit

If you're out of work after redundancy, apply for Universal Credit or Jobseeker’s Allowance (JSA). These can help with living costs while you search for new work. A benefits calculator can help you estimate what you might receive.

Step 7: Update Your CV and Start Job Hunting

Take time to refresh your CV and update your LinkedIn profile. Job centres and recruitment agencies can support you in finding new work. Consider training or upskilling if you want to switch industries or improve your prospects.

Step 8: Know When to Seek Advice

If you think your redundancy was unfair — for example, you were selected based on age, gender, or for raising concerns — speak to an employment advisor or contact ACAS. You have the right to challenge unfair dismissal through an employment tribunal, usually within 3 months of dismissal.

Useful Links

Frequently Asked Questions

It depends on your age, length of service, and weekly wage. Use the official calculator to get an estimate.
You may be able to claim through the Redundancy Payments Service. Visit Gov.uk for eligibility.
Yes. You may be eligible for Universal Credit, JSA, or other support while you look for work.