What happens if I'm made redundant?
Redundancy is a shock, but it is not your fault. It means your role is no longer needed. If you have worked for your employer for 2+ years, they MUST pay you statutory redundancy pay.
🔴 IMMEDIATE ACTION REQUIRED
If you are facing redundancy, you need a detailed breakdown of your rights and a plan for what comes next. Visit our partner site for a specialized deep-dive:
Redundancy Reality Check →
Use the tools below to estimate your payout, check if you should be working your notice, and see how long your cash will actually last.
1 The Typical Timeline
If you take no action, this is the standard statutory process. Timescales are approximate but typical for 2026.
Consultation
Your employer must talk to you about why you are being made redundant and if there are other jobs you could do.
Formal Letter
You receive a formal notice letter stating your end date. This is when your notice period officially begins.
Payout & P45
You should receive your final salary, redundancy pay, and any holiday pay you haven't taken.
Benefits Claim
Apply for Universal Credit immediately. Even if you have a payout, the 5-week wait starts from the day you apply.
2 Free Calculators & Checks
Calculate your legal minimum payout today.
Statutory Redundancy Estimator
Calculate the legal minimum payout your employer MUST pay you.
Working your notice vs getting paid to leave now.
Notice vs PILON Checker
Find out if you should be working your notice or getting paid to leave now.
See exactly how many months your money will last.
Redundancy Runway Estimator
How long will your payout and savings actually last?
This runway ignores any benefits like **Universal Credit** or **New Style JSA** that you might be eligible for. Claiming immediately will extend your runway by several months.
Am I entitled to Redundancy Pay?
You are legally entitled to statutory redundancy pay if you've been working for your employer for 2 years or more.
You get:
- 0.5 week's pay for each full year you were under 22
- 1 week's pay for each full year you were 22 or older, but under 41
- 1.5 week's pay for each full year you were 41 or older
The 3 Rights You Have
- Consultation: A meeting to discuss the redundancy.
- Alternative Work: The right to be offered any suitable alternative roles in the company.
- Time off for job hunting: If you've worked there for 2 years, you get 'reasonable' paid time off for interviews.
Summary of Options
Check Redundancy Pay
Use our calculator to ensure your employer is paying you the legal minimum (Statutory Redundancy).
Redundancy Reality Check
Go to [redundancyrealitycheck.co.uk](https://www.redundancyrealitycheck.co.uk/) for a professional review of your situation.
Notice vs PILON
Decide if you want to work your notice or leave early with 'Pay in Lieu' (PILON). Check our tool for the pros and cons.
Common Questions
Can they make me redundant while on sick leave?
Yes, but they must follow the same fair process. They cannot make you redundant because you are sick, but if your role is truly gone, being sick doesn't protect you from redundancy.
Is redundancy pay taxed?
Statutory redundancy pay is tax-free up to £30,000. Your final salary and holiday pay are taxed as normal.
What if the company goes bust?
If your employer is insolvent, you can claim your redundancy pay and notice pay from the government's Insolvency Service.
Official Sources & References
Related Situations
Other guides accurately explaining what happens next in work & employment .
What happens if I quit my job without notice?
Leaving without notice (breach of contract) allows your employer to deduct extra costs from your final pay. However, they cannot force you to work, and bad references are less common than you think.
What happens if I fail probation at work?
Failing probation usually leads to dismissal. Because you have served less than 2 years, you generally cannot claim 'Unfair Dismissal', but you ARE entitled to notice pay and accrued holiday.
What happens if I'm dismissed for misconduct?
Dismissal for misconduct can be immediate ('Summary Dismissal' for Gross Misconduct) or after warnings. You have the right to a fair process and potentially an appeal.