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Redundancy: running a fair process and calculating pay

Redundancy is a fair reason for dismissal only if it is genuine and the process is fair. Cutting corners turns a redundancy into an unfair dismissal.

A fair process

  • A genuine redundancy situation (the role, not the person, is no longer needed).
  • Fair, objective selection criteria applied consistently.
  • Meaningful individual consultation and consideration of suitable alternative roles.

Collective consultation

  • 20-99 redundancies at one establishment in 90 days: at least 30 days' collective consultation before the first dismissal.
  • 100+ redundancies: at least 45 days.

Statutory redundancy pay

Employees with two or more years' service are entitled to statutory redundancy pay, based on age, weekly pay (capped) and length of service (up to 20 years). Use the GOV.UK calculator for exact figures.

Last reviewed September 2026. General information, not legal advice - check ACAS and GOV.UK for your situation.

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