Redundancy

Where you lose your job because your employer is closing the business or reducing the number of staff, this is known as redundancy.

Your employer should use a fair and objective way of selecting people to make redundant.

Before your employer makes you redundant, they might offer you another job in the business. This is known as ‘alternative work’.

If you are being made redundant, your job won’t end straight away. By law, you are entitled to a minimum paid notice period.

If you lose your job you may be eligible for redundancy pay. This page summarises the rules on qualifying for a redundancy payment.

Find out about redundancy pay and how your statutory redundancy is calculated.

Your employer should pay the redundancy lump sum to you when your employment ends. Get advice if you are having problems getting your redundancy pay.

If your employer has no work available for you, or less work available than usual, you may be put on a lay off or short time working arrangement.

Lump sum payments in compensation for loss of employment are subject to tax. How is tax calculated and what are your entitlements?