How much redundancy pay am I entitled to?

Statutory redundancy pay is calculated based on your age, length of service (up to 20 years), and weekly pay (subject to a statutory cap). You get half a week for each year under 22, one week for each year aged 22-40, and one and a half weeks for each year aged 41 and over. Your employer may offer an enhanced package above the statutory minimum.

How much notice must be given for redundancy?

Statutory notice is one week for each complete year of service, up to a maximum of 12 weeks. Your contract may specify a longer notice period. The employer can offer payment in lieu of notice instead of requiring you to work the notice period.

Can I be made redundant while on maternity leave?

Yes, but the employer must follow a fair process. Employees on maternity leave have priority for suitable alternative vacancies if available. Selecting someone for redundancy because of their maternity leave would be automatically unfair dismissal and pregnancy discrimination.

Do I have to accept an alternative role?

If the employer offers suitable alternative employment, you have the right to a four-week trial period. If you unreasonably refuse a suitable offer, you may lose your entitlement to statutory redundancy pay. What counts as suitable depends on factors such as pay, location, and the nature of the work.

Can I appeal a redundancy decision?

The ACAS Code does not specifically cover redundancy appeals, but offering an appeal is considered good practice and can help demonstrate the fairness of the process. The appeal should be heard by someone not involved in the original decision where possible.

Am I entitled to time off to look for work?

Employees with two or more years' service who are under notice of redundancy have the right to reasonable time off during working hours to look for new employment or arrange training. This is paid at the normal hourly rate for a maximum of two-fifths of a week's pay.

Is redundancy pay taxable?

UK statutory redundancy pay and the first £30,000 of any enhanced redundancy payment are normally tax-free in Britain. Payments above £30,000 are subject to income tax and, in some cases, National Insurance contributions under English tax law. Payments in lieu of notice are taxable as earnings.

What is collective consultation?

If a UK employer proposes to make 20 or more employees redundant at one establishment within 90 days, they must consult with appropriate employee representatives. Consultation in England and Wales must begin at least 30 days before the first dismissal (45 days if 100 or more are affected) and must include ways of avoiding redundancies, reducing numbers, and mitigating consequences. British employers who fail to consult face protective award claims before employment tribunals.

EmploymentUnited Kingdom

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Northgate Manufacturing Ltd

Unit 4, Riverside Business Park
Sheffield S9 2FT
Attn: Sarah Williams

0114 2746400

hr@northgate.co.uk

2026-04-17

Robert James Chambers

27 Maple Drive
Rotherham S60 1AB
Employee No: NGM-2194

Re: Notice of Redundancy — Production Supervisor

Last day of employment: 2026-07-10

Dear Robert James Chambers,

Further to our recent discussions and the completion of the redundancy consultation process, I am writing to confirm in writing that your position of Production Supervisor within the Manufacturing — Plant 2 department with Northgate Manufacturing Ltd has been selected for redundancy and that your employment will therefore terminate by reason of redundancy on 2026-07-10.

REASON FOR REDUNDANCY

The reason for your redundancy is a reorganisation of the business which has reduced the requirement for employees to carry out work of a particular kind (section 139(1)(b) of the Employment Rights Act 1996).

Following a strategic review of Plant 2 completed in February 2026, the requirement for Production Supervisor roles has reduced from five to three posts, leading to two redundancies in this pool.

Your continuous employment began on 2019-06-01, giving you continuous service for the purposes of sections 210-219 of the Employment Rights Act 1996.

CONSULTATION AND SELECTION

The Employer confirms that a fair redundancy procedure has been followed in accordance with the principles in Polkey v AE Dayton Services Ltd [1987] UKHL 8 and, in respect of selection, Williams v Compair Maxam Ltd [1982] ICR 156. Consultation was conducted as individual consultation. Consultation commenced on 2026-03-02 and concluded on 2026-03-27. Selection pool: All Production Supervisors at Plant 2 (5 employees). Selection criteria: Technical skills (30%); attendance (20%); performance rating FY2025 (30%); disciplinary record (20%). The Employer confirms that the selection criteria have been applied objectively and without discrimination contrary to the Equality Act 2010 (including the proactive duty to prevent sexual harassment introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2023, in force from 26 October 2024). Throughout the process, the Employer has considered whether there are any suitable alternative employment opportunities (see below) and has carefully taken into account any representations made by you.

NOTICE PERIOD AND LAST DAY OF EMPLOYMENT

You are required to work your notice period in full. Your notice period under this letter is 12 weeks. Your statutory minimum notice under section 86 of the Employment Rights Act 1996 (one week for each complete year of service, up to a maximum of twelve weeks) shall apply where greater than the contractual notice specified in this letter. Your last day of employment will be 2026-07-10.

REDUNDANCY PAY AND FINAL PAYMENTS

You are entitled to a redundancy payment calculated under section 162 of the Employment Rights Act 1996 by reference to your age, length of continuous service and a week's pay (subject to the statutory cap set under ERA 1996 s.227, currently £719 per week for dismissals on or after 6 April 2025 under the Redundancy Payments (Limit) Order 2025 — reviewed annually each April). Your gross weekly pay for statutory purposes is £615.38 GBP. Your statutory redundancy payment is calculated at £4,680.00 GBP.

Under ITEPA 2003 ss.401-416 the first £30,000 of genuine redundancy compensation is free of income tax and NIC; any amount above that threshold (including PILON paid as post-employment notice pay under ITEPA 2003 s.402D) is taxable in the normal way. Payment will be made on or before 2026-07-31.

ALTERNATIVE EMPLOYMENT

The Employer has considered whether there are any suitable alternative roles available within the business in line with section 141 of the Employment Rights Act 1996. Regrettably, no such alternative role has been identified at the present time. Should a suitable vacancy arise during your notice period, you will be notified and given a reasonable opportunity to apply.

REASONABLE TIME OFF TO LOOK FOR WORK

Because you have not less than two (2) years' continuous service you are entitled under sections 52-54 of the Employment Rights Act 1996 to reasonable paid time off during your notice period to look for new employment or arrange training for future employment. Please arrange such time off with your line manager giving reasonable notice.

OUTPLACEMENT SUPPORT

The Employer will provide outplacement support to assist you in finding alternative employment. Support includes: 8-week outplacement package with Penna Career Transition (CV writing, interview coaching, job-search support). Further details will be provided to you separately and the service can be activated by contacting HR.

REFERENCE

The Employer will, on request, provide a factual reference confirming your dates of employment, role and final job title. Any qualified character or opinion reference will be provided in accordance with the principles in Spring v Guardian Assurance plc [1995] 2 AC 296 and the Employer's reference policy. Please direct reference requests to the HR Department.

RIGHT OF APPEAL

You have the right to appeal this redundancy decision in accordance with the ACAS Code of Practice on Disciplinary and Grievance Procedures. Any appeal must be submitted in writing within 5 working days of receipt of this letter. Please address your appeal to Helen Murray, Head of People, setting out clearly the grounds on which you appeal. Your appeal will be heard by a manager who has not been involved in the decision to make your role redundant. You have the right to be accompanied at the appeal hearing by a trade union representative or fellow worker under section 10 of the Employment Relations Act 1999.

10.

CODE OF PRACTICE ON DISMISSAL AND RE-ENGAGEMENT 2024

The Employer confirms that this dismissal is by reason of redundancy under section 139 of the Employment Rights Act 1996 and is not a "fire-and-rehire" dismissal aimed at imposing changes to terms and conditions. The statutory Code of Practice on Dismissal and Re-engagement (in force from 18 July 2024) therefore does not apply to this dismissal. The Employer notes that, were such a dismissal contemplated in future, an Employment Tribunal would have power under section 207A of the Trade Union and Labour Relations (Consolidation) Act 1992 to apply an uplift of up to 25% to any protective award for unreasonable failure to comply with the Code.

11.

STATUTORY RIGHTS AND TRIBUNAL ACCESS

The Employer has taken steps to ensure that this dismissal is lawful, fair and free from discrimination under the Equality Act 2010. If you consider your dismissal to be unfair (ERA 1996 s.94) or discriminatory, you have the right to bring a claim in the Employment Tribunal. Time limits are strict: three (3) months less one day from the effective date of termination, subject to mandatory ACAS Early Conciliation under section 18A of the Employment Tribunals Act 1996. Contact ACAS on 0300 123 1100 or via acas.org.uk before issuing any claim.

12.

AI-ASSISTED SELECTION — ARTICLES 22-22D UK GDPR

Where any artificial-intelligence or automated tool has been used to score, rank or select employees in this redundancy process, the Employer confirms that it has complied with Articles 22 to 22D of the UK GDPR as reformed by section 80 of the Data (Use and Access) Act 2025. In particular: (a) no selection decision producing legal or similarly significant effects on you was taken solely by automated means without the safeguards required by Articles 22A-22D (notice, meaningful human intervention, the right to contest the decision and to obtain an explanation); (b) the Employer has performed a Data Protection Impact Assessment under Article 35 UK GDPR for the AI tool; (c) human moderators reviewed and approved the final selection list; and (d) you have the right, in addition to any contractual right of challenge, to ask for further information about the logic, significance and envisaged consequences of the automated processing (Arts 13(2)(f), 14(2)(g) and 15(1)(h) UK GDPR). No general-purpose AI model has been trained on your personal data without your freely-given consent.

13.

EMPLOYER IDENTITY VERIFICATION (ECCTA 2023 S.62)

The Employer confirms that, to the extent it is a company, LLP or other registrable body, its directors, members and persons with significant control (PSCs) — including the signatory of this letter — have completed (or will complete within the transitional window ending mid-November 2026) the identity verification regime introduced by section 62 of the Economic Crime and Corporate Transparency Act 2023, inserting sections 1110A to 1110F of the Companies Act 2006. The regime was available on a voluntary basis from 8 April 2025 and became mandatory on 18 November 2025 for new appointments, with a 12-month transition for existing officers. The Employer will, on your reasonable request, provide evidence of the signatory's Companies House verification status.

14.

RETURN OF PROPERTY AND DATA PROTECTION

On or before your last day of employment you are required to return all Company property, including (but not limited to) laptop, mobile phone, keys, ID badge, credit/purchase cards, documents, and any confidential information (whether in hard copy or electronic form). The Employer will process your personal data in connection with this redundancy on the legal bases of contract and legitimate interests under Articles 6(1)(b) and (f) of the UK GDPR, the Data Protection Act 2018 and the Data (Use and Access) Act 2025 (as commenced by SI 2026/82 with effect from 5 February 2026), and will retain your employment records in line with the Employer's retention policy. Where any onward transfer to a third country is involved (for example, a cloud-based HRIS or payroll service), it complies with the data protection test in Schedule 7 of the DUA Act 2025 (which replaces the prior "essentially equivalent" standard), using an approved transfer mechanism.

If you have any questions about this letter or your entitlements, please contact Sarah Williams at hr@northgate.co.uk. I would like to take this opportunity to thank you sincerely for your service and contribution to Northgate Manufacturing Ltd and to wish you every success in the future.

YOURS SINCERELY,

Sarah Williams

HR Director for and on behalf of Northgate Manufacturing Ltd

Date: ____________________

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What Is a Redundancy Notice Letter?

A redundancy notice letter is a formal written communication from an employer to an employee confirming that their role is being made redundant and that their employment will end. It sets out the reason for redundancy, the notice period, the last day of employment, and details of any redundancy payment.

Under the Employment Rights Act 1996, an employee is dismissed by reason of redundancy when the employer has ceased or intends to cease carrying on the business, or when the need for employees to do work of a particular kind has ceased or diminished. The redundancy must be genuine and the selection process fair.

A well-drafted UK redundancy letter demonstrates that the British employer has followed a fair process, which is essential for defending potential unfair dismissal claims. It should only be issued after proper consultation has taken place under English employment law.

What's Covered in This Template

Our redundancy notice letter template includes all the key information required for a lawful and compassionate redundancy notification.

Employee and Employer Details

Full names, addresses, job title, and employee reference number.

Reason for Redundancy

A clear explanation of why the redundancy has arisen — business closure, workplace closure, or reduced need for the role.

Consultation Summary

Confirmation that individual and, where applicable, collective consultation has taken place.

Selection Criteria

A summary of the criteria used to select employees for redundancy and why this individual was selected.

Notice Period

The statutory or contractual notice period and whether the employee will work it or receive payment in lieu.

Last Day of Employment

The effective date of termination.

Redundancy Payment

The calculated statutory redundancy payment and any enhanced contractual payment the employer is offering.

Outstanding Entitlements

Details of final salary, accrued holiday pay, and any other amounts due.

Right of Appeal

The employee's right to appeal the redundancy decision and the process for doing so.

Support and Outplacement

Information about time off to find new employment, outplacement services, or other support offered.

How to Create a Redundancy Notice Letter

Follow these steps to create a compliant redundancy notice letter using our template.

1
Confirm Consultation Is Complete
Before issuing the letter, ensure that the required consultation process has been completed. For individual redundancies, meaningful individual consultation must have taken place. For 20 or more redundancies, collective consultation obligations under section 188 of TULRCA 1992 apply.
2
Enter Employee and Redundancy Details
Fill in the employee's name, job title, and length of service. State the reason for redundancy and summarise the selection process and criteria used.
3
Calculate Notice and Payments
Determine the correct notice period (statutory or contractual) and calculate the statutory redundancy payment based on the employee's age, length of service, and weekly pay.
4
Add Final Entitlements
Include details of any outstanding salary, accrued holiday pay, bonus, and any enhanced redundancy package the employer is offering.
5
Review and Download
Preview the completed letter, verify all calculations and details, and download as a PDF. Deliver the letter during a face-to-face meeting where possible.

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Legal Considerations

Redundancy in England and Wales is governed by detailed statutory requirements that employers must follow.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.

Reviewed for England & Wales law

Genuine Redundancy

Under section 139 of the UK Employment Rights Act 1996, redundancy arises when the British employer has ceased or intends to cease business, the workplace has closed, or the need for employees to do work of a particular kind has ceased or diminished. A redundancy that is not genuine in England and Wales — for example, where the role is immediately filled by someone else — will not be a fair reason for dismissal.

Fair Selection Process

British employers must use fair and objective selection criteria when choosing employees for redundancy in the UK. Common criteria include skills, qualifications, attendance records, disciplinary records, and length of service. The criteria must not discriminate on any ground protected by the UK Equality Act 2010 under English law.

Consultation Requirements

UK employers must consult individually with each employee at risk of redundancy, discussing the reasons for redundancy, selection criteria, and any alternatives. Where 20 or more employees are to be made redundant at one establishment within 90 days, collective consultation is required under section 188 of the UK Trade Union and Labour Relations (Consolidation) Act 1992. Failure to consult in England and Wales can result in a protective award of up to 90 days' pay per affected employee.

Statutory Redundancy Pay

UK employees with two or more years' continuous service are entitled to a statutory redundancy payment. The British calculation is based on the employee's age, complete years of service (up to 20), and weekly pay (capped at a statutory limit set by the UK government). The formula provides half a week's pay per year of service under age 22, one week for each year aged 22-40, and one and a half weeks for each year aged 41 and over under English law.

Frequently Asked Questions

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