How much redundancy pay do I have to pay?

It depends on the employee's age, completed years of service (capped at 20) and weekly pay (subject to the statutory cap, reviewed each April), up to a maximum of 30 weeks' pay. Use our redundancy pay calculator for the exact current figure.

How long does the redundancy consultation process take?

For fewer than 20 redundancies there is no fixed statutory minimum, but consultation must begin while proposals are still at a formative stage and be genuine and meaningful. Where 20+ employees are affected at one establishment in 90 days, minimum collective consultation periods apply (30 days for 20–99, 45 days for 100+) before the first dismissal.

What are fair selection criteria for redundancy?

Criteria should be objective, measurable and non-discriminatory — for example skills, qualifications, experience, performance, disciplinary record and attendance (excluding disability-related absence). Avoid anything linked to a protected characteristic.

Do I have to offer suitable alternative employment?

Yes — you must consider and offer suitable alternative work where it exists (ERA 1996, s.138). The employee is entitled to a statutory trial period (usually four weeks) in a new role.

What notice do I have to give for redundancy?

At least the statutory minimum (1 week for 1 month–2 years, then 1 week per complete year up to 12 weeks), or the notice in their contract if longer.

When is a redundancy genuine, and when is it unfair?

It's genuine when the reason fits the statutory definition (business/workplace closure, or reduced need for particular work). It can be unfair if the process is not followed properly, the selection is unfair or discriminatory, or redundancy is a cover for another reason — even a genuine redundancy can be unfair without a fair procedure (Polkey).

Can I make someone on maternity leave redundant?

Only in genuine redundancy situations, and enhanced protections apply: employees who are pregnant or on (or recently returned from) maternity, adoption or shared parental leave have priority for any suitable alternative vacancy. Selecting someone for a reason connected to pregnancy or maternity is automatically unfair. Take advice before proceeding.

Do I need collective consultation?

Only if you propose to make 20 or more employees redundant at one establishment within 90 days. You must also notify the Secretary of State (form HR1) before the first dismissal — failure to do so is a criminal offence. Below the threshold, follow the individual process this pack covers.

Which documents do I need for a redundancy?

Typically an at-risk / consultation invitation letter, consultation scripts, a selection matrix, a notice-of-redundancy letter and an appeal process — all included in this pack.

England & WalesProcess pack

Redundancy Process Pack (England & Wales)

A redundancy process unfolds over several weeks, in a specific order. Each document below is a faithful, diff-verified reproduction of the corresponding ACAS redundancy letter template. Read the step-by-step guide for how these fit together.

Document sequence

1
At-Risk of Redundancy Letter (England & Wales)Diff-verified against the ACAS source
2
Redundancy Consultation Meeting Invite Letter (England & Wales)Diff-verified against the ACAS source
3
Redundancy Notice Letter (England & Wales)Diff-verified against the ACAS source

Step 2.5 — Calculate statutory redundancy pay

Use this before completing the redundancy notice letter (document 3 above) — the amount you calculate here is the same figure that letter asks for.

Statutory redundancy pay calculator

Enter age at the redundancy date

Enter full years of continuous service

Enter average weekly pay (GBP), before tax

Result

Weekly pay used in calculation£500

Years counted (capped at 20)5

5 year(s) aged 22–40 → 1 week/year

Statutory redundancy pay£2,500

Informational — statutory minimum only; contractual or enhanced redundancy terms may apply and are not calculated here. Weekly pay cap: £751 (effective 2026-04-06, source: gov.uk). This is not legal or financial advice.

Considering a settlement agreement instead?

A settlement agreement requires independent legal advice by law and is not offered as a fill-and-download document. Read why.

This information is a general guide for employers in England & Wales. It is not legal advice. Laws and statutory rates change over time — always verify the current position before relying on this information. For advice on your specific situation, consult a qualified professional.

Overview

A redundancy happens when an employer needs to reduce its workforce because a job is no longer needed — for example a business or workplace is closing, or the need for employees to do work of a particular kind has stopped or diminished (Employment Rights Act 1996, s.139; the statutory test was clarified in Murray v Foyle Meats Ltd [1999] UKHL 30). The Redundancy Process Pack (England & Wales) gives employers the documents to run a fair redundancy from start to finish — the letters, scripts and forms for consultation, selection, notice and appeal — in the order you need them, aligned with Acas guidance.

When to use this pack

You have a genuine redundancy (workplace/business closing, or reduced need for particular work).
You are making fewer than 20 employees redundant at one establishment within any 90-day period.
You want a fair, documented process to reduce the risk of an unfair dismissal claim.

When NOT to use this pack (read this first)

It is not a genuine redundancy. If you want to remove a specific individual for performance or conduct, that is a capability or disciplinary matter — use the Disciplinary Process Pack.
You are making 20 or more redundancies at one establishment within 90 days — this triggers collective consultation (TULRCA 1992, s.188). This pack covers the individual process only.
A TUPE transfer is involved (Transfer of Undertakings (Protection of Employment) Regulations 2006) — different rules apply.
The role is a fixed-term contract reaching its agreed end. Expiry of a fixed term is not automatically a redundancy, but it can still be a dismissal and may give rise to a redundancy payment — seek advice.

The process this pack covers

1
Plan and identify the pool
Confirm a genuine redundancy and define the selection pool objectively (see Safeway Stores plc v Burrell [1997] ICR 523).
2
Warn and consult individually
Consultation must begin while proposals are still at a formative stage and before any final decision has been made, and be genuine and meaningful.
3
Use fair, objective selection criteria
Applied consistently and without discrimination.
4
Consider alternatives
Including suitable alternative employment (ERA 1996, s.138; see Thomas & Betts Manufacturing Ltd v Harding [1980] IRLR 255), with a statutory trial period where relevant.
5
Give notice
At least the statutory minimum (see key figures below) or the contractual notice if longer.
6
Confirm in writing and offer the right to appeal
7
Give reasonable time off to look for work
(ERA 1996, s.52) for employees with 2+ years' service.

Key figures

Qualifying service: At least 2 years' continuous service (ERA 1996, s.155).
Under 22: 0.5 week's pay for each full year worked while under 22.
22–40: 1 week's pay for each full year worked while 22–40.
41 or over: 1.5 weeks' pay for each full year worked while 41 or over.
Maximum service counted: Up to 20 years.
Maximum statutory redundancy pay: 30 weeks' pay.
Statutory minimum notice (ERA 1996, s.86): At least 1 week for one month to two years' service, then 1 week for each complete year up to a maximum of 12 weeks — or the contractual notice if longer.

Weekly pay is subject to the statutory weekly cap, which is reviewed each April (via the Employment Rights (Increase of Limits) Order), and the maximum is 30 weeks' pay.

Statutory weekly pay cap is £751, effective from 6 April 2026 — updated each April.

Use our free Redundancy Pay Calculator for an exact figure using the current statutory value.

Frequently asked questions

How much redundancy pay do I have to pay?: It depends on the employee's age, completed years of service (capped at 20) and weekly pay (subject to the statutory cap, reviewed each April), up to a maximum of 30 weeks' pay. Use our redundancy pay calculator for the exact current figure.
How long does the redundancy consultation process take?: For fewer than 20 redundancies there is no fixed statutory minimum, but consultation must begin while proposals are still at a formative stage and be genuine and meaningful. Where 20+ employees are affected at one establishment in 90 days, minimum collective consultation periods apply (30 days for 20–99, 45 days for 100+) before the first dismissal.
What are fair selection criteria for redundancy?: Criteria should be objective, measurable and non-discriminatory — for example skills, qualifications, experience, performance, disciplinary record and attendance (excluding disability-related absence). Avoid anything linked to a protected characteristic.
Do I have to offer suitable alternative employment?: Yes — you must consider and offer suitable alternative work where it exists (ERA 1996, s.138). The employee is entitled to a statutory trial period (usually four weeks) in a new role.
What notice do I have to give for redundancy?: At least the statutory minimum (1 week for 1 month–2 years, then 1 week per complete year up to 12 weeks), or the notice in their contract if longer.
When is a redundancy genuine, and when is it unfair?: It's genuine when the reason fits the statutory definition (business/workplace closure, or reduced need for particular work). It can be unfair if the process is not followed properly, the selection is unfair or discriminatory, or redundancy is a cover for another reason — even a genuine redundancy can be unfair without a fair procedure (Polkey).
Can I make someone on maternity leave redundant?: Only in genuine redundancy situations, and enhanced protections apply: employees who are pregnant or on (or recently returned from) maternity, adoption or shared parental leave have priority for any suitable alternative vacancy. Selecting someone for a reason connected to pregnancy or maternity is automatically unfair. Take advice before proceeding.
Do I need collective consultation?: Only if you propose to make 20 or more employees redundant at one establishment within 90 days. You must also notify the Secretary of State (form HR1) before the first dismissal — failure to do so is a criminal offence. Below the threshold, follow the individual process this pack covers.
Which documents do I need for a redundancy?: Typically an at-risk / consultation invitation letter, consultation scripts, a selection matrix, a notice-of-redundancy letter and an appeal process — all included in this pack.

Legislation & regulations

Employment Rights Act 1996, ss. 52, 86, 138, 139, 155, 162
Trade Union and Labour Relations (Consolidation) Act 1992, s.188 (collective consultation)
Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE)
Protection from Redundancy (Pregnancy and Family Leave) Act 2023, and the Maternity Leave, Adoption Leave and Shared Parental Leave (Amendment) Regulations 2024 (enhanced protection)

Case law

Williams v Compair Maxam Ltd [1982] ICR 156 — Principles of a fair redundancy process
Polkey v AE Dayton Services Ltd [1987] UKHL 8 — Procedural fairness (genuine redundancy can still be unfair without a fair process)
Murray v Foyle Meats Ltd [1999] UKHL 30 — The s.139 redundancy definition
Safeway Stores plc v Burrell [1997] ICR 523 — Defining the selection pool
Thomas & Betts Manufacturing Ltd v Harding [1980] IRLR 255 — Suitable alternative employment

Regulator / official guidance

This information is for informational purposes only and does not constitute legal advice. For advice on a specific situation, consult a qualified adviser or Acas (acas.org.uk).