Redundancy: Is Yours Fair — and Is the Package Right?
Most people facing redundancy aren't looking for a legal definition. They want to know whether their process was fair, whether the package is reasonable, and whether it's worth pushing back.
Two colleagues made redundant on the same day regularly walk away with very different packages — and very different tribunal outcomes. This guide helps you work out where your redundancy sits, using comparable Employment Tribunal decisions rather than generic advice.
What is redundancy?
Redundancy is a specific type of dismissal: the role is no longer needed, not the person doing it. That's the easy part. The harder — and more useful — questions are whether the redundancy was genuine, whether the process would survive tribunal scrutiny, and whether the package on the table matches what similar employees actually received.
A genuine redundancy usually falls into one of these categories:
Reduced need for work
The business needs fewer people to do a particular type of work — for example after a fall in demand.
Workplace closure
A specific site, office or location closes, and roles based there are no longer required.
Business closure
The whole business shuts down, ending every role across the organisation.
Workplace reorganisation
A genuine restructure changes how work is done so that certain roles are no longer needed in the same form.
Which of these describes your situation?
Benchmark the offer against comparable tribunal awards and settlement outcomes before you sign.
See how often comparable redundancy challenges have actually succeeded at tribunal, based on published decisions.
When is redundancy genuine?
Employers cannot simply label any dismissal "redundancy". For the legal test to be satisfied, there must be a real reduction in the need for employees to do work of a particular kind, or a closure of the business or workplace.
Disappearing roles
The role genuinely ceases to exist, or the number of people needed to do that work falls.
Restructuring
A real restructure can create redundancies — but only if the underlying need for the old roles has actually changed.
Sham redundancies
A dismissal dressed up as redundancy when the real reason is performance, conduct or personality is not genuine.
Replacing employees
If someone is hired to do substantially the same job shortly after, the redundancy may not stand up to scrutiny.
Redundancy consultation
Consultation is a cornerstone of a fair redundancy. An employer is expected to consult meaningfully with affected employees before any final decision is taken — not present a done deal.
Individual consultation
Each affected employee should be consulted about the proposal, the selection criteria and possible alternatives.
Collective consultation
Where 20 or more redundancies are proposed at one establishment, additional collective consultation duties apply.
Meaningful consultation
Consultation must happen at a formative stage, with genuine consideration of representations made by the employee.
Alternatives to redundancy
Employers should consider alternatives — redeployment, reduced hours, voluntary redundancy — before confirming dismissals.
Redundancy selection
Where some — but not all — employees in a pool are being made redundant, the employer must use a fair process to decide who is selected. The criteria should be objective, measurable so far as possible, and applied consistently.
Common fair selection criteria include:
Skills and experience
An objective assessment of the skills the business needs going forward.
Qualifications
Formal qualifications relevant to the role being retained.
Disciplinary record
Live, formal disciplinary warnings, used proportionately and consistently.
Attendance
Carefully used. Disability-related and protected absences should normally be excluded to avoid discrimination.
Objective scoring
A scoring matrix with clear, evidenced criteria applied by managers who actually know the work.
What unfair selection looks like
Subjective scoring, criteria that target a specific individual, or selection influenced by protected characteristics.
Redundancy pay
Redundancy pay isn't a single number — it's made up of different elements, and how much someone receives depends on length of service, contract terms and how the process is run.
Statutory redundancy pay
A legal minimum based on age, length of service and a weekly pay figure subject to a statutory cap. Eligibility usually requires at least two years' continuous service.
Contractual redundancy pay
Some employers offer enhanced redundancy under the contract or policy — often substantially more generous than the statutory minimum.
Notice pay
Statutory or contractual notice, paid either by working the notice period or as pay in lieu of notice.
Holiday pay
Any accrued but untaken statutory holiday is paid on termination.
Why two people can receive very different redundancy packages
Two colleagues made redundant at the same time can walk away with very different sums. Length of service drives the statutory calculation. Contractual enhancements, notice arrangements, share schemes, bonus entitlement and any settlement agreement uplift all sit on top. Where the redundancy is arguably unfair or potentially discriminatory, the employer's appetite to add additional sums in a settlement agreement increases — which is why benchmarking matters before signing anything.
When redundancy starts to look unfair
Redundancies are lawful every day — plenty of employers follow a fair process and pay a reasonable package. But the same patterns keep appearing in the cases that go the other way. Recognising them matters, because two employees in the same restructure often walk different paths depending on whether these warning signs are present.
No meaningful consultation
The employee was told their role was at risk only after the decision had effectively been made.
Predetermined outcome
The process looks like a paper exercise — selection scores, pools or outcomes were decided before consultation.
Discriminatory selection
Selection is influenced by a protected characteristic — age, sex, race, disability, pregnancy, religion or others.
Incorrect scoring
Selection scores contain factual errors, ignore relevant evidence or are applied inconsistently across the pool.
No consideration of alternative roles
Suitable alternative employment exists in the wider business but isn't offered or discussed.
Sham redundancy
There is no real redundancy situation — the dismissal is for another reason dressed up as a restructure.
Redundancy Tribunal Statistics & Trends
This section will shortly contain original CaseIntel analysis of redundancy-related claims, drawn from our database of more than 54,000 published Employment Tribunal decisions.
Claim success rates
How often redundancy-related unfair dismissal claims succeed across our database of published Employment Tribunal decisions.
Average awards
Typical Basic and Compensatory Award ranges in successful redundancy-linked unfair dismissal claims.
Sectors
How redundancy claim outcomes vary across sectors — from financial services to retail, public sector and tech.
Regional analysis
How redundancy claim outcomes differ across Employment Tribunal regions in England, Wales and Scotland.
Historical trends
How redundancy claim volumes and outcomes have shifted year on year, including the impact of major economic events.
The law is one part — the numbers are the other
Knowing your rights matters. But most people facing redundancy also want to know what comparable cases have actually been worth and how often similar claims succeed. CaseIntel benchmarks both.
Settlement Offer Checker
Benchmark a redundancy settlement offer against comparable tribunal awards before you sign.
Claim Success Checker
See how often comparable employment claims succeed at tribunal, based on real published decisions.
Tribunal Outcome Predictor
Model the likely outcome and award range if a redundancy dispute went all the way to tribunal.
Frequently Asked Questions
Can I refuse redundancy?+
You cannot prevent your employer from making your role redundant if there is a genuine redundancy situation and a fair process is followed.
You can, however, challenge whether the redundancy is genuine, whether the process was fair, and whether the selection was lawful — and you can usually negotiate the terms on which you leave.
Can my employer replace me after redundancy?+
If your role genuinely no longer exists, your employer may still need other roles filled. But if someone is hired shortly afterwards to do substantially the same job, that's a strong indicator the redundancy may not have been genuine.
Tribunals look at the reality, not just the job title.
What is a fair redundancy consultation?+
A fair consultation starts before final decisions are made, gives the employee enough information to respond meaningfully, considers their representations, and explores alternatives such as redeployment.
A single meeting to deliver a pre-decided outcome is unlikely to meet that standard.
How is redundancy pay calculated?+
Statutory redundancy pay is based on age, length of service and a capped weekly pay figure. Contractual or enhanced redundancy schemes can pay significantly more.
Notice pay and accrued holiday are paid separately on top. Statutory rates change periodically — always check the current figures on GOV.UK.
Can redundancy be unfair?+
Yes. A redundancy dismissal can be unfair where there is no genuine redundancy situation, where the process is inadequate, where selection is unfair or discriminatory, or where suitable alternative roles aren't properly considered.
If your dismissal is unfair, you may be entitled to compensation — often well beyond the statutory redundancy payment.
Can I negotiate my redundancy package?+
Often yes. Employers regularly offer enhanced terms via a settlement agreement, especially where there are arguable weaknesses in the redundancy process.
Benchmarking the offer against comparable tribunal awards is the most reliable way to know whether what's on the table is fair.
Should I accept a settlement agreement?+
It depends on what's being offered relative to the strength of any claims you might bring. Settlement agreements provide certainty and a quicker outcome, but signing waives most rights to pursue the employer afterwards.
You'll need independent legal advice before signing — and a benchmark against comparable tribunal outcomes helps you decide whether to accept, push back or reject.
How long do I have to bring a claim?+
Most Employment Tribunal claims must be started within three months less one day of the relevant act — for example the date your employment ended — subject to extension via ACAS Early Conciliation.
These time limits are strict, so don't delay if you're considering a claim.
You now understand how redundancies are assessed. The remaining question is where your redundancy sits — a fair process with a reasonable package, or something that looks noticeably different when compared with similar tribunal decisions. Answering that before you accept, negotiate or challenge is due diligence, not an optional extra.
Understand where your situation fits
This guide is for general information only and is not legal advice. Always consult a qualified employment solicitor before making legal decisions.