What is Redundancy and What Are Employee Rights in the UK

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Миколаєнко Олена Василівна

Attorney

United Kingdom / England

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Publication date: 03.09.2025

Redundancy is a form of dismissal in the UK when an employer needs to reduce their workforce due to economic, organisational, or technological reasons. UK labour law clearly regulates this process to protect employee rights UK. Legal Marketplace Consultant offers employment contract consultation and HR legal consulting to help workers understand their rights, conduct legal review employment contract, and develop a clear action plan during redundancy. Our services support all types of employment UK, including contract employment UK, fixed-term contract UK, and zero-hours contract, ensuring fairness and compensation.

Understanding Redundancy

Redundancy occurs when a job role is no longer needed due to business closure, restructuring, or reduced workload. Under the Employment Rights Act 1996, employers must follow a fair process to avoid claims of unfair dismissal. For instance, if your fixed-term contract UK or contract employment UK is terminated due to redundancy, you are entitled to consultation and redundancy pay. Legal review employment contract from Consultant helps verify if your employer complied with UK labour law.

Key reasons for redundancy include:

• Closure of part or all of the business.
• Reduced need for a specific type of work.
• Introduction of new technology replacing jobs.
• Relocation of the company to a new site.

UK labour law advice from Consultant ensures your redundancy is lawful and protects your employee rights UK, particularly for those on zero-hours contract or contract employment UK.

Who is Eligible for Redundancy Protection

UK labour law protects employees with at least two years of continuous service from unfair redundancy. This applies to various types of employment UK, such as:

1. Permanent employees with contract employment UK.
2. Workers on fixed-term contract UK, who may face discrimination compared to permanent staff.
3. Individuals on zero-hours contract, with enhanced rights under the Employment Rights Bill 2025.
4. Self-employed individuals, if their status aligns with contract employment UK, per the Uber v Aslam (2021) precedent.

If you’re unsure about your eligibility, employment contract consultation from Consultant assesses your status and rights. Our legal review employment contract identifies breaches that may support a challenge to redundancy, ensuring protection across all working arrangements UK.

Employee Rights During Redundancy

Employee rights UK during redundancy are well-defined under UK labour law. Key rights include:

1. Fair Selection: Employers must use objective criteria, such as experience, qualifications, or performance, for selecting employees. Selection based on gender, age, disability, or pregnancy is unlawful and may constitute unfair dismissal.
2. Consultation: Employers must consult employees before redundancy. For 20+ redundancies, collective consultation (30–45 days) is mandatory. Employment contract consultation from Consultant prepares you for these discussions.
3. Redundancy Pay: Employees with two or more years of service are entitled to statutory redundancy pay, calculated based on age, service, and weekly pay (capped at £719 per week in 2025).
4. Alternative Employment: Employers must consider offering suitable alternative roles. You have a 4-week trial period for new roles without losing redundancy pay rights.

HR legal consulting from Consultant ensures the redundancy process complies with legislation and supports challenges to unfair dismissal. We also assist with reviewing your contract employment UK for violations that may strengthen your case.

The Consultation Process

Consultation is a critical part of redundancy, especially for collective redundancies involving 20 or more employees. The Employment Rights Bill 2025 will strengthen requirements from 2026, mandating consultation across the entire business, not just one site. Key consultation steps include:

• Informing Employees: Employers must explain the reasons for redundancy and explore alternatives.
• Discussing Alternatives: Options like reduced hours, redeployment, or voluntary redundancy.
• Fair Selection Process: Using transparent criteria to select employees for redundancy.

Failure to consult properly may lead to an unfair dismissal claim at an Employment Tribunal. UK labour law advice from Consultant helps gather evidence and protect your employee rights UK, especially for zero-hours contract or fixed-term contract UK workers.

Challenging Unfair Redundancy

If you believe your redundancy was unfair (e.g., due to discrimination or lack of consultation), you can file a claim with an Employment Tribunal within 3 months of dismissal (6 months from 2026). Legal review employment contract from Consultant identifies breaches in your working arrangements UK that may support your claim. The process includes:

1. Contacting ACAS: Mandatory early conciliation through the Advisory, Conciliation and Arbitration Service (ACAS) before filing a claim.
2. Submitting Form ET1: Completing the tribunal claim form with details of the violation.
3. Preparing for Hearing: Gathering evidence and presenting your case at the tribunal.

HR legal consulting from Consultant supports you from document preparation to tribunal representation, ensuring your employee rights UK are upheld.

Frequently Asked Questions About Redundancy

How to Protect Your Rights During Redundancy

Review Your Contract: Order legal review employment contract from Consultant to identify violations.

Seek Expert Advice: Use employment contract consultation to assess your case.

Challenge Unfairness: File a tribunal claim with HR legal consulting support.