Redundancy in 2026: Updated Rules, Notice Requirements & Employee Rights

Redundancy can be one of the most stressful moments in someone’s working life. It affects income, security and future plans. Unfortunately, it’s still common in the UK.

Official data from the Office for National Statistics (ONS) shows that redundancies continue to affect workers across all regions and sectors, with updated statistics published as recently as December 2025. And although planned job cuts have eased compared to pandemic-era peaks, medium and large businesses still notified more than 260,000 planned redundancies in the year to February 2025.

Because of this, it’s important for both employers and employees to understand what redundancy means in law, and what has changed for 2026.

This guide covers:

• What redundancy is (and isn’t) under UK law
• Key updates that matter in 2026 – especially for pregnant employees and new parents
• Statutory notice periods for redundancy
• How collective consultation works
• Statutory redundancy pay – new figures from April 2025

Core employee rights during redundancy

1. What is redundancy under UK law?

In everyday speech, redundancy can be used loosely. In legal terms, it has a specific definition.

Redundancy arises where an employee is dismissed because:

• The employer has ceased or intends to cease carrying on the business; or
• The employer no longer needs employees to carry out work of a particular kind, or needs fewer employees to do that work; or
• The business is relocating, and it is not reasonable to expect the employee to move.
  

Acas puts it simply: redundancy is “a type of dismissal where a role is no longer needed”, and employers must consider ways to reduce or avoid redundancies before dismissing people.

Redundancy must be about the role, not the person. If a dismissal is labelled “redundancy” but actually relates to performance, conduct or another reason, it may be unfair or even discriminatory. follows the law, is written in plain English, and answers the questions that usually cause arguments later – hours, pay, duties, holiday and what happens if things change or go wrong.plexity and maximum strategic advantage. Especially for those planning to operate internationally or relocate as entrepreneurs, free zones offer a compelling platform.

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2. What’s changed for redundancy in 2026?

The basic rules of redundancy haven’t changed, but there are important new protections and updated payment caps that matter in 2026.

 However, there have been important recent changes that directly affect redundancy situations in 2026, particularly around protection for pregnant employees and new parents, and updated redundancy pay caps.

2.1 Extended protection for pregnant employees and new parents

From 6 April 2024, UK law significantly extended the period of priority protection for certain employees in a redundancy situation.

Previously, enhanced protection (priority for suitable alternative vacancies) mainly applied only while someone was actually on maternity, adoption or shared parental leave.

Now, the “redundancy protected period” typically runs:

• For pregnant employees – from the date they inform their employer of their pregnancy, until 18 months after the child’s birth.
• For those on maternity leave – until 18 months after the child’s date of birth.
• For adoption leave – until 18 months from the date of placement (or when the child enters the UK in the case of overseas adoption).
• For shared parental leave – extended in a similar way, depending on the pattern and length of leave.
  

During this protected period, if a redundancy situation arises and there is a suitable alternative vacancy, the employee with priority protection must be offered that role – ahead of other potentially at-risk colleagues, even if those colleagues have stronger paper qualifications.

This is a major practical change for redundancy exercises in 2026. Employers who mishandle this protection risk:

• Unfair dismissal claims
• Pregnancy/maternity discrimination claims
  

2.2 Updated statutory redundancy pay caps (from April 2025)

Statutory redundancy pay is calculated based on age, length of service and a capped weekly pay figure. From 6 April 2025:

• The weekly pay cap is £719.
• The maximum statutory redundancy pay is £21,570.

If you were made redundant before 6 April 2025, lower caps apply.

These rates can change annually, so in 2026 employers should always check the current figures on GOV.UK or Acas before running calculations.

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3. Redundancy notice periods in 2026

Redundancy is a form of dismissal, so employees are entitled to notice – either worked or paid in lieu.

There are two key concepts:

• Statutory notice – the legal minimum, set by law.
• Contractual notice – what your contract says. If this is longer than statutory, you get the longer period.
  

3.1 Statutory redundancy notice periods

The statutory minimum notice periods in the UK are:

• At least 1 week’s notice if you’ve been employed between 1 month and 2 years
• 1 week’s notice for each full year you’ve worked, if you’ve been employed between 2 and 12 years
• 12 weeks’ notice if you’ve been employed for 12 years or more
  

So, if you’ve worked for five years and four months, you’re entitled to 5 weeks’ notice as a minimum, even if your contract is silent.

Employers can always offer more generous notice, but they cannot lawfully give less than the statutory minimum.

3.2 Notice pay and working vs PILON

During your notice period, you are usually entitled to:

• Your normal pay and benefits (unless you agree a different arrangement), or
• Pay in lieu of notice (PILON) if the contract allows the employer to shorten notice and pay instead.
  

Some employers also place employees on garden leave – where you remain employed and paid, but are not required to attend work. The details depend on the contract.s.”

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4. Collective redundancy consultation – when numbers matter

If an employer is dismissing larger numbers of staff, additional collective consultation rules apply.

You must follow collective consultation rules if you’re proposing to make 20 or more employees redundant within a 90-day period at one establishment.

The minimum consultation periods are:

• 20–99 redundancies – consultation must begin at least 30 days before the first dismissal takes effect.
• 100 or more redundancies – consultation must begin at least 45 days before the first dismissal.
  

Key points about collective consultation:

• Employers must consult appropriate representatives (such as trade unions or elected employee reps).
• They must provide information on the reasons for redundancies, the numbers affected, selection methods, and how they plan to carry out dismissals.
• Failure to properly consult can lead to claims and a protective award of up to 90 days’ gross pay per affected employee.
  

Collective consultation does not replace individual consultation, which is still required for each employee at risk.

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5. Statutory redundancy pay – who qualifies and how it’s calculated

5.1 Who qualifies for statutory redundancy pay?

You’ll normally qualify for statutory redundancy pay if:

• You’re an employee (not self-employed or genuinely freelance);
• You’ve been employed continuously for at least 2 years; and
• You’re being dismissed by reason of redundancy.
  

You generally won’t qualify if:

• You’re dismissed for misconduct;
• You’ve worked for less than 2 years; or
• You’re offered suitable alternative employment and unreasonably refuse it.
  

5.2 How statutory redundancy pay is worked out

Statutory redundancy pay is based on:

• Your age at the time of redundancy
• Your length of continuous service (capped at 20 years)
• Your weekly pay, capped at £719 if you’re made redundant on or after 6 April 2025
  

The formula is:

• 0.5 week’s pay for each full year of service under age 22
• 1 week’s pay for each full year of service aged 22 to 40
• 1.5 week’s pay for each full year of service aged 41 or older
  

The total statutory redundancy pay is capped at £21,570 from 6 April 2025.

Employers may offer enhanced redundancy packages, especially in larger organisations or under collective agreements, but they cannot pay less than the statutory minimum where it applies.

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6. Fair redundancy selection and discrimination risks

Redundancy may be genuine, but the way people are selected can still be unfair or discriminatory.

Guidance from Acas and GOV.UK highlights that selection should use objective, measurable criteria, such as:

• Skills, qualifications and aptitude
• Standard of work and performance
• Attendance record (excluding pregnancy-related or disability-related absence)
• Disciplinary record
  

Risky or unlawful selection criteria include choices based (directly or indirectly) on protected characteristics (such as age, disability, sex, race, pregnancy/maternity, religion or belief, sexual orientation, etc.), or on trade union membership or whistleblowing.

Common red flags:

• Automatically selecting pregnant employees or those on maternity leave (unlawful).
• Relying solely on “last in, first out”, which can amount to age discrimination.
• Selecting part-time or fixed-term staff because they’re perceived as “less committed”.
  

If the selection process is not fair, any resulting redundancy dismissal may be unfair – even where there is a genuine downturn or restructure.

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7. Time off to look for work and suitable alternative employment

7.1 Time off to look for work or training

If you’ve been given notice of redundancy and have 2 or more years’ continuous service, you have a statutory right to reasonable time off during working hours to look for new employment or arrange training. This is set out in section 52 of the Employment Rights Act 1996.

Employers must pay for some of this time off – typically up to 40% of a week’s pay – and many go further in practice.

7.2 Suitable alternative employment and trial periods

If your role is redundant, your employer should consider if there is suitable alternative employment elsewhere in the organisation.

Key points:

• If a suitable alternative role exists, it should be offered, not made subject to a full competitive recruitment process – especially for employees with enhanced protection (for example, due to pregnancy or recent maternity/adoption leave).
  
• You are entitled to a 4-week trial period in the new role. If it’s genuinely unsuitable, you can leave within that period and retain your redundancy rights.
  

If you unreasonably refuse a suitable alternative role, you may lose your right to statutory redundancy pay altogether.

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8. Redundancy in 2026: practical takeaways

For employees

• Check your status
  
  • Are you an employee with at least 2 years’ service? If so, you may qualify for statutory redundancy pay and notice.
    
• Ask about selection
  
  • How was the “redundancy pool” defined? What criteria were used? Are they objective and non-discriminatory?
    
• Look at your dates
  
  • If you’re pregnant or have recently taken maternity, adoption or shared parental leave, you may have priority protection extending up to 18 months after birth or placement.
    
• Check your pay
  
  • Use the GOV.UK redundancy calculator and make sure the weekly cap and maximum are correct for the date your redundancy takes effect.
    
• Use your rights during notice
  
  • If eligible, request reasonable paid time off to look for work or arrange training.
    

For employers

• Plan early
  
  • Check whether SRA, FCA or other regulators require prior notice of large-scale redundancies if you operate in a regulated sector.
    
• Audit your process
  
  • Make sure you have a clear, written redundancy procedure and robust selection criteria.
    
• Flag protected employees
  
  • Build the extended protection for pregnant employees and new parents into your redundancy planning – especially when offering alternative roles.
    
• Document consultation
  

Clear, well-documented individual and (where required) collective consultation will significantly reduce the risk of claims.

FAQs – Redundancy 2026 FAQs