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Facing redundancy can be a stressful and uncertain time. Whether your role is being made redundant due to business restructuring, workplace closure, or downsizing, knowing your rights is crucial.
At Warner Goodman LLP, our Employment Law team provides expert guidance to ensure you are treated fairly, receive the compensation you are entitled to, and have support throughout every step of the resignation process, whatever the circumstances.
Redundancy occurs when an employee’s role is no longer required due to:
Business closure or workplace closure – for example, if a company shuts down a branch or ceases trading entirely.
Reduction in workforce – when fewer employees are needed to carry out the same work, often due to declining business needs.
Reorganisation or restructuring – when roles are merged, removed, or changed significantly as part of internal restructuring.
A dismissal is considered redundant if it is “wholly or mainly attributable” to one of these circumstances. It is important to note that redundancy is not related to an employee’s performance, conduct, or behaviour, but is instead driven by the business's operational needs.
When facing redundancy, you are entitled to certain legal rights under employment law:
Protection from unfair dismissal – You must have been employed continuously for at least two years to bring a claim for unfair dismissal if your redundancy is not carried out fairly or in accordance with proper procedures.
Protection against discriminatory selection – Employers cannot select you for redundancy on the basis of protected characteristics, such as age, sex, race, disability, sexual orientation, religion, pregnancy/maternity, marriage/civil partnership or gender reassignment. This ensures that the redundancy process is fair and unbiased.
Right to consultation – Your employer has a legal duty to inform and consult with you about the redundancy, explaining the reasons, discussing alternatives where possible, and giving you the opportunity to respond or raise concerns.
Understanding and asserting your legal rights during redundancy is crucial. By knowing what protections are in place, you can ensure the process is handled fairly and safeguard both your employment interests and any redundancy payments you are entitled to.
If your employer plans to make 20 or more employees redundant within a 90-day period at a single site or location, they are legally required to follow specific consultation and notification procedures:
Failure to do so can result in fines for the employer and may allow employees to claim up to 90 days’ pay per employee. Employees may also bring claims for unfair dismissal if proper consultation procedures are not followed.
Employers are required to carry out a fair and objective selection process when deciding which employees will be made redundant. This helps ensure that decisions are based on genuine business needs rather than personal bias. Common factors considered in the selection process include:
Employers cannot select employees for redundancy on discriminatory grounds, and doing so may give rise to legal claims. Protected factors include:
A fair selection process means you can be confident that redundancy decisions are made transparently, consistently, and based on objective criteria, rather than unfair or discriminatory reasons. If this process isn’t followed correctly, you may have grounds to challenge the redundancy or bring a claim for unfair dismissal or discrimination.
You are entitled to receive proper notice of redundancy, which depends on your length of service:
Your contract may provide longer notice, but cannot offer less than the statutory minimum. Employers may also provide payment in lieu of notice (PILON).
Employers are expected to explore all reasonable alternatives before making redundancies, such as:
Offering voluntary redundancy – giving employees the option to leave on mutually agreed terms.
Early retirement options – allowing eligible employees to retire sooner than planned, potentially with financial incentives.
Alternative roles within the organisation – considering if employees can be redeployed to other suitable positions.
Re-training or redeployment opportunities – providing support or training to help employees move into different roles within the company.
If an employer fails to properly consider these alternatives, it may strengthen your claim for unfair dismissal or provide grounds to challenge the redundancy.
Employees with two or more years of continuous service are entitled to statutory redundancy pay, calculated using:
Some employers offer enhanced redundancy packages, often in exchange for signing a Settlement Agreement. It is crucial to seek independent legal advice before signing any agreement to ensure your rights are protected and that you receive a fair and appropriate redundancy package.
In some redundancy situations, employers may offer a Settlement Agreement. This is a legally binding contract that sets out the terms on which your employment ends, including any enhanced redundancy pay, notice pay, or other benefits.
It is crucial to seek independent legal advice before signing a Settlement Agreement. Doing so ensures that:
Our specialist employment solicitors can review or negotiate Settlement Agreements, advise on your options, and help you make informed decisions during this important stage of redundancy.
Our Employment Litigation team provides expert advice and support for employees facing redundancy. We can:
 | Review whether your redundancy is genuine and ensure it is based on legitimate business reasons |
| Advise on statutory and enhanced redundancy pay to make sure you receive everything you are entitled to |
| Ensure the selection and consultation process is fair and free from discrimination |
| Negotiate or review Settlement Agreements to protect your rights and secure a fair outcome |
| Provide legal representation in Employment Tribunal claims if necessary |
Facing redundancy can be overwhelming. We provide expert guidance and support to help you understand your rights, secure the compensation you deserve, and navigate the process with confidence.
Redundancy occurs when your role is no longer needed due to business closure, workforce reduction, or restructuring. Dismissal, on the other hand, usually relates to performance, conduct, or other personal reasons. Redundancy is not a reflection of your performance.
Yes. If you believe the redundancy process was unfair, discriminatory, or used as a cover for dismissal, you may have grounds to bring a claim for unfair dismissal or discrimination.
Statutory redundancy pay is based on your age, weekly pay (subject to a cap), and length of service. Employees with at least two years of continuous service are eligible. Some employers may offer enhanced packages above the statutory minimum.
No. A Settlement Agreement is only binding if you voluntarily sign it after receiving independent legal advice. You are not obligated to accept any offer.
Claims must generally be submitted to an Employment Tribunal within three months of the date your employment ended. Acting promptly ensures your case can be properly considered.
Failure to consult, especially in cases of collective redundancy (20+ employees in 90 days), can strengthen a claim for unfair dismissal and may entitle you to compensation.
Redundancy should not affect your accrued pension rights. However, enhanced packages or settlement agreements may include specific terms, so always seek legal advice to review the impact.
Facing redundancy can be one of the most challenging experiences in your career, leaving you uncertain about your future and financial security. Our specialist employment solicitors in Hampshire are here to provide clear advice, practical support, and expert representation throughout the redundancy process.
We offer a proven track record in handling redundancy and employment termination cases, with benefits including:
| Over 170 years of combined experience in employment law for employees |
| High success rate in advising on redundancy, unfair dismissal, and settlement agreements |
| Transparent pricing so you always know what to expect |
| Clients rate us ‘excellent’ on reviewsolicitors.co.uk, based on over 1,000+ verified reviews |
| Fully regulated and authorised by the Solicitors Regulation Authority (SRA) |
With Warner Goodman LLP, you can rely on a team that is experienced, approachable, and dedicated to achieving the best possible outcome for every client.
If you’re at risk of redundancy, have been selected for redundancy, or believe your redundancy has been handled unfairly, it’s important to get specialist legal advice as soon as possible. Our experienced solicitors can guide you through every stage — from consultation and selection to redundancy pay, settlement agreements, and Employment Tribunal claims — ensuring your rights are protected and you receive fair treatment.
We assist clients across Hampshire and beyond, with offices conveniently located in Southampton, Portsmouth, Fareham, Chandler's Ford, and Waterlooville. You can choose to meet with us in person or arrange a remote consultation at your convenience.
Call: 023 8063 9311
Email: employment@warnergoodman.co.uk
Alternatively, complete our online enquiry form to request a confidential callback.
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