# Statutory redundancy rights and pay — your legal minimum > Work & self-employment · Last updated 6 April 2026 Canonical HTML: https://moneyguide.org.uk/work-earnings/statutory-redundancy-rights/ Markdown mirror: https://moneyguide.org.uk/work-earnings/statutory-redundancy-rights.md ## Quick answer If you are made redundant after 2 years of continuous service, you are entitled to a statutory redundancy payment, a notice period, time off to look for work and (in larger redundancies) a consultation period. If you are made redundant after 2 years of continuous service, you are entitled to a statutory redundancy payment, a notice period, time off to look for work and (in larger redundancies) a consultation period. Many employers go further than the legal minimum. ## Key facts - Qualifying service: 2 years' continuous employment. - Statutory pay formula: 0.5 / 1 / 1.5 weeks' pay per year of service by age band; max 20 years × £719/week = £21,570 (from 6 April 2025). - First £30,000 of redundancy pay is free of Income Tax and free of employee NI; the excess is taxed (Income Tax only — employees pay no NI on it). - Notice: at least 1 week per year of service (max 12 weeks), or whatever your contract says if higher. ## What counts as a genuine redundancy Redundancy is a specific legal reason for dismissal — the job no longer exists, the workplace is closing, or there are too many people doing the role. If the dismissal isn't genuinely a redundancy you may have an unfair-dismissal claim. Your employer must use a fair selection process. Common criteria: skills, qualifications, attendance and disciplinary record. Selecting on discriminatory grounds (age, pregnancy, disability) is unlawful. ## Notice, pay and consultation You are entitled to statutory minimum notice: one week per year of service up to 12 weeks. Your contract may give more. During the notice period you continue to be paid normally. Where 20+ redundancies are proposed at one workplace, the employer must consult collectively (with a union or elected reps) for at least 30 days (45 days for 100+). Smaller redundancies still require fair individual consultation. During the notice period you have the right to reasonable paid time off to look for a new job or arrange training. ## If your employer is insolvent If your employer goes into administration or liquidation, you can claim redundancy pay, notice pay (up to statutory maximum), unpaid wages (up to 8 weeks) and unpaid holiday pay (up to 6 weeks) from the government's Redundancy Payments Service. Statutory payments via RPS are capped at the same £719/week as a normal claim. Apply within 6 months of dismissal. ## Frequently asked questions ### Is my settlement agreement worth signing? An employer often offers more than the statutory minimum in return for you signing a settlement agreement that waives further claims. You must take independent legal advice before signing — and the employer normally pays a contribution to those legal fees. ### What about my pension and benefits? Employer pension contributions stop at the termination date. You can usually leave the pension where it is or transfer it. Death-in-service, private health cover and other benefits usually end on the termination date unless the settlement extends them. ### Will redundancy affect Universal Credit? Statutory redundancy pay counts as capital, not income — so it affects UC only if it pushes your total capital above £6,000 (taper) or £16,000 (no UC). Notice pay counts as earnings in the month received. ## Primary source https://www.gov.uk/redundancy-your-rights ## Related - [Redundancy pay calculator](https://moneyguide.org.uk/tools/redundancy-pay-calculator/) - [Universal Credit explained](https://moneyguide.org.uk/benefits-tax/universal-credit-explained/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Information only — not regulated financial advice.