Contact Us | 0800 211 8443

Dealing with Redundancy - Part 1 - Knowing Your Rights

photo shows positive image of a surfer - surfing life's trials and tribulations such as redundancy

Redundancy is an unfortunate fact of life particularly in an economic downturn but with the right advice it doesn’t have to be the end of the world. There are a number of issues to consider if you are facing redundancy and in this series we will look at how to deal with each issue in detail, beginning with Knowing Your Rights.

Step 1. Knowing your rights

Losing your job can have both legal and financial repercussions, so it's important to know precisely what you are entitled to and what your rights are. Being made redundant is often a difficult and emotional time but, should the worst happen, being forearmed with this knowledge can vital in ensuring a smoother process. AllRegionalJobs is pleased to bring you all the advice you should need to make dealing with this difficult situation a bit easier.

Reasons For Redundancy

There are a number of reasons why your employer is allowed to make redundancies but the most common reasons include your company closing down, the work you do is no longer needed, your company is moving location or it decides it requires fewer staff. Firstly, it is important that you know the full reason you are being made redundant as it may affect your rights. Your employer should request a meeting with you and offer you a full reason at this time.

Notice Period

During this initial meeting your employer should also make you aware of the notice period you are being given. As soon as you are made aware that you are facing redundancy you should dig out your contract of employment in which you should find your notice period is specified. Your employer is obliged to give you your full contractual notice period.

Statutory Redundancy Pay – Do You Qualify?

Your redundancy package will be based on how long you've worked for your employer and the reason why you've been dismissed. Your employer is obliged, if you qualify, to provide you with a basic redundancy called Statutory Redundancy Pay. To qualify you must:

  • Be an employee (self-employed people and casual workers don't qualify)
  • Be under 65 (unless the normal retirement age for your job is under 65)
  • Have worked for the employer for two years continuously since the age of 18.

Statutory Redundancy Pay – How Much?

How much statutory redundancy pay you'll receive depends on your age, your weekly pay and how long you've worked for the company. Follow the right calculation below to work out how much you will receive:

Aged 18-21 - half a week's pay x years of service
Aged 22-40 - one week's pay x years of service
Aged 40 to 65 - one-and-a-half week's pay x years of service.

For example, Sophie aged 35 has been with her company for 5 years and is currently earning £24,000. She will receive, as a minimum, approximately £2,500.

Alternative Job

It is important to be aware that your employer may offer you an alternative job. This could be in a different branch or department for example and should have a comparable salary and hours and should be in a reasonable travelling distance. If you reject a suitable alternative job it may affect your Statutory Redundancy Pay. You have the right to a trial period in any alternative job and are still permitted to take redundancy if you or your employer decides it is not working out.

Negotiating a deal 

Your company might offer a better redundancy package than the statutory minimum. If they don’t and you have no pre-arranged agreement, you might want to consider negotiating a deal. If you feel uncomfortable doing this you could ask a representative to do this on your behalf.  You might also even be able to get extras thrown in to your package such as your computer, company car or mobile phone. You might also be able to persuade them to pay for private careers advice for you.

During this negotiation it is important to have any offer written down and take some time to think about it rather than agreeing verbally immediately.

Getting Help

It can be difficult to know who to turn to for help during the redundancy process but there are a number of people who can offer you assistance. If applicable you should speak to your trade union professional bodies or for free advice your local Citizens' Advice Bureau will help. You may also want to consider speaking to an independent financial advisor or engaging an employment law expert. Engaging a law expert need not be costly as you may qualify legal aid or you may be able to get legal expenses insurance is as an "add-on'' to your home policy. Most insurers will sell this cover for around £20 a year.

Before You Leave

Once you have sorted out the finer points of your redundancy it is vital you receive the following:

  • Your P45
  • Written details of your redundancy package
  • A good reference
  • A note of the contact details of your line manager, trade union representative, human resources department and pension fund trustees

Useful Telephone Numbers

The Department of Trade & Industry (redundancy payments office) – 0500 848 489
The TUC ‘Know Your Rights’ helpline - 0870 600 4882

Next time in Step 2 we will look in detail at the financial ramifications of being made redundant including tax, pensions and advice on what to do with the money.


  Please share this article with your friends on Facebook - thank you.


Additional resources related to this article

The following organisations are based in, or near to the South and may be able to help you with some of the issues discussed in this article - we hope you find them to be useful.


Additional resources related to this article


If you contact any of these organisations, please mention that you found their details on AllRegionalJobs.com - thank you.

Could you help our visitors? To have your organisation listed here (for free) - please send us a message

Much of the advice on our website has been kindly provided by local companies and organisations for which we are very grateful - could you offer some advice to our visitors in return for some free coverage on our website? If so please get in touch here as we'd love to hear from you.

Careers Advice

We work with experts in and around our local area to provide useful information relating to careers advice - we hope you will find these articles to be helpful. You can view our news news archive here


photo shows man in a suit jumping in the air celebrating getting his new job

Dealing with Redundancy - Part 5 - Finding a New Job

Once your redundancy is dealt with and any retraining has been undertaken you will probably need to find a new job. This can seem daunting, particularly if you have not had to look for a new

read more
photo shows close of up a man's feet on a tightrope high above office buildings

Redundancy - Advice for Employers and Businesses

When we hear the word 'redundancy' it is natural to think of the impact that it will have on the person being made redundant with out regard for the difficulties inflicted upon the employer

read more
photo shows a blue piggy bank wearning glasses - he is providing financial advice to people facing redundancy

Dealing with Redundancy - Part 2 - Financial Advice

Do you know the tax implications of receiving a redundancy package and how to avoid paying unnecessary tax? If you are going to find yourself struggling financially do you know how to lessen

read more
photo shows positive image of a surfer - surfing life's trials and tribulations such as redundancy

Dealing with Redundancy - Part 1 - Knowing Your Rights

Do you know what redundancy package you are likely to receive? Do you know what the government stipulated minimum package is? As well as detailing the legal and financial aspects we will

read more
photo shows small plant overcoming advertisty and growing through a crack in hard ground

Dealing with Redundancy - Part 3 - Psychological Impact

Do you feel like you’ve lost your identity and can’t stop feeling negative? It is not only the practicalities of redundancy that need to be addressed. Redundancy can also have a massive

read more
photo shows dismayed candidate who hasnt had much luck in her career

Top 10 things not to do in a job interview

We've been asking local employers for tips on what to do in an interview – and, of course, what not to do! Here are our top 10 not to do in that all-important job interview.

read more
photo shows woman leaping whilst holding flowing coloured streamers out behind her - to give the impression of moving forwards through re training after being made redundant

Dealing with Redundancy - Part 4 - Retraining and Development

Have you thought about a new career or improving upon the skills you currently have? In this article we will offers tips and advice on increasing your 'employability' through courses and

read more
photo shows ladder reaching up to the sky - the career ladder

10 Steps to Creating Career Opportunities

It's too easy to start looking in the job section of the paper and applying for everything that has an attractive salary, car or any other perks, before falling into this trap, be really

read more

the South Employment & Business News

When attending interviews it's always good to be up to date with what's happening in the local business and employment sector - we hope you'll find these selected news articles interesting


Part time Jobs in townname

It can appear challenging to find a job that fits in with your life commitments. We are aware that 9 to 5 from Monday to Friday does not suit everyone. In fact, statistics demonstrate that the number of employees working over 45 hours a week is in decline. It is not unusual for people to desire hours which fit around personal factors including childcare. If you’re looking for a part time job in townname what are some common sectors to find flexible hours and how can sitename assist you in finding a part time job in townname? Common Part Time Jobs in Townname Part time jobs in townname are available in all sectors but experience has shown that certain sectors commonly have a greater number of flexible openings than others, especially when you require a part time job with little experience needed. Here are some sectors that we recommend you make your first port of call: Customer Services It is not uncommon for ..read more

Nursing jobs in the South

Nursing and care is one of the major industries in the South with several hospitals and many care homes and care establishments in this area. All of these establishments need staffing but how can you go about looking for the ..read more

What not to do in your the South job interview

As well as preparing for what you should do when attending a job interview, whether it's a part time job in the South or that exciting next step on the career ladder, it is just as ..read more

Top 4 questions asked at job interviews for the South job seekers

1. Describe your strengths It is pretty much a sure fire thing that on most the South job interviews you will be asked what you think your areas of strength are (and sometimes what you think your ..read more

Interview Tips to help you get that perfect job in the South

AllRegionalJobs is specifically designed to assist people find jobs in the South or to find jobs in the area of the South. With the careers market now more ..read more


Legal Disclaimer: Please note that this information is not intended to be exhaustive or be a substitute for legal advice. The application of the law in this area will often depend upon the specific facts and you are advised to seek specific advice on any given scenario.