How to deal with being made redundant

by Michael Cheary

Losing your job is tough. 

There's no getting around that. But being made redundant doesn't mean you've failed - and it definitely doesn't have to be the end of your career story. Whether you're dealing with the news right now, going through the redundancy process, or preparing for what comes next, this guide will walk you through everything you need to know. 

From understanding your rights and managing your finances to updating your CV and protecting your mental health, we've got you covered:

What does being made redundant mean?

Redundancy is a type of dismissal where your role is no longer needed. It's a business decision - not a reflection of your abilities or performance.

Common reasons for redundancy include:

• The company is cutting costs or restructuring
• Your role or the service you provide is no longer required
• The business is closing down or relocating
• New technology or systems have replaced your role

It's important to remember: redundancy happens to hundreds of thousands of people every year in the UK. You're not alone, and it's nothing to be ashamed of.

Out of work checklist: What to do if you lose your job

Know your rights during redundancy

Before you do anything else, make sure you understand what you're entitled to. UK employment law sets out clear guidelines that all employers must follow when making redundancies.

Your employer must follow a fair process

Your employer is legally required to:

• Give you a written explanation of why you're being made redundant
• Consult with you about the redundancy (this is a legal requirement, not just good practice)
• Use fair and objective selection criteria if choosing between employees for redundancy
• Offer you suitable alternative employment within the organisation if it's available
• Give you reasonable time off to look for a new job or arrange training (if you've been employed for two years or more)

If your employer doesn't follow these steps properly, your redundancy could be considered unfair dismissal. You have the right to appeal against your redundancy if you believe the process wasn't fair, you weren't properly consulted, or you've been discriminated against in any way.

Notice periods

You must be given a notice period before your employment ends. The statutory minimum notice periods are:

• At least one week's notice if you've been employed between one month and two years
• One week's notice for each year if you've been employed between two and 12 years
• 12 weeks' notice if you've been employed for 12 years or more

Your contract may entitle you to more notice than the statutory minimum, so check your employment contract carefully.

Your employer may offer you 'payment in lieu of notice' instead of working your notice period. This means you'll receive your full pay (and any contractual extras like pension contributions) without having to work.

Consultation requirements

If your employer is making 20 or more employees redundant, they must consult collectively with employee representatives (such as trade unions). The minimum consultation periods are:

• At least 30 days before the first dismissal if 20 to 99 redundancies are proposed
• At least 45 days before the first dismissal if 100 or more redundancies are proposed

Important update: From 6 April 2026, if an employer fails to consult properly in a collective redundancy, the maximum protective award will increase from 90 days' pay to 180 days' pay for each affected employee.

Even if collective consultation doesn't apply to your situation, your employer should still consult with you individually about your redundancy.

Selection for redundancy must be fair

If your employer needs to select some employees for redundancy, they must use fair and objective criteria. Common selection criteria include:

• Skills, qualifications, and experience
• Performance and disciplinary records
• Attendance records
• Length of service

You cannot be selected for redundancy because of your age, gender, race, disability, pregnancy, or any other protected characteristic under the Equality Act 2010. If you believe you've been discriminated against, you may be able to challenge the decision at an employment tribunal.

Redundancy protection for pregnancy and new parents

If you're pregnant or on certain types of parental leave, you have additional protection during redundancy.

Since 6 April 2024, enhanced redundancy protection applies to employees who are:

• Pregnant (protection starts when you tell your employer you're pregnant)
• On maternity leave
• On adoption leave
• On shared parental leave (if taking six weeks or more)
• On neonatal care leave (if taking six weeks or more)

This protection lasts for 18 months from the date of your baby's birth, the start of an adoption placement, or when a child enters the UK in an overseas adoption.

During this 'redundancy protected period', if there are any suitable alternative vacancies in the organisation, your employer must offer them to you as a priority - even if other employees are also suitable for the role.

Time off to look for work

If you've been continuously employed for two years or more by the date your notice period ends, you're entitled to reasonable time off during your notice period to:

• Look for another job
• Arrange training to help you find another job

Your employer must pay you for up to 40% of one week's pay, regardless of how much time you actually take off.

For full details on your rights, visit GOV.UK's redundancy guidance.

Understanding redundancy pay

If you've worked for your employer for two years or more, you're entitled to statutory redundancy pay. Your employer should give you a written explanation of how they calculated your payment.

How statutory redundancy pay is calculated

Your redundancy pay is based on:

• Your age
• How long you've been employed by the company (capped at 20 years)
• Your weekly pay

You'll get:

• Half a week's pay for each full year you were under 22
• One week's pay for each full year you were 22 or older, but under 41
• One and a half week's pay for each full year you were 41 or older

Your weekly pay is the average you earned per week over the 12 weeks before you received your redundancy notice.

As of 6 April 2025, weekly pay is capped at £719, meaning the maximum statutory redundancy pay you can receive is £21,570. You can calculate your redundancy pay using GOV.UK's redundancy pay calculator.

When you might not be entitled to redundancy pay

You won't be entitled to statutory redundancy pay if:

• Your employer offers to keep you on and you accept
• Your employer offers you suitable alternative work and you refuse it without good reason
• You're dismissed for misconduct

Enhanced redundancy packages

Some employers offer enhanced redundancy packages that are more generous than the statutory minimum. Check your employment contract and company handbook to see if this applies to you.

What if your employer can't afford to pay?

If your company has gone into administration or has financial difficulties, the Redundancy Payments Service may make the payment on behalf of your employer.

Redundancy pay: What you need to know

Suitable alternative employment

Your employer should try to find you alternative work within the organisation if a suitable role is available. Whether a job is 'suitable' depends on several factors, including:

• How similar the work is to your current role
• The terms and conditions being offered
• Your skills, abilities, and personal circumstances
• The pay, status, hours, and location

Trial periods for alternative roles

If you're offered an alternative role, you have the right to a four-week trial period to see if it's suitable. This trial period can be extended (with your agreement in writing) if you need training.

If you decide during the trial period that the role isn't suitable and you give notice, this won't affect your right to redundancy pay. However, if you don't give notice within the four-week trial period, you may lose your right to statutory redundancy pay.

Refusing suitable alternative employment

You may lose your right to statutory redundancy pay if you unreasonably turn down a suitable alternative job. If you believe the job you've been offered isn't suitable, you can make a claim to an employment tribunal.

Coping with redundancy

Being made redundant can have a significant impact on your mental health. It's completely normal to experience a range of emotions - from shock and anger to anxiety and relief.

Give yourself time to process

Losing your job is a major life change. Don't expect to 'get over it' immediately. You might feel:

• Shock or disbelief
• Anger or resentment
• Anxiety about the future
• A sense of loss or grief
• Relief (especially if you weren't happy in your role)

All of these feelings are valid. Give yourself space to experience them, rather than trying to push them away.

Don't take it personally

This is one of the most important things to remember. Redundancy is a business decision - it's not a reflection of your skills, your value, or your worth as a person.

Hundreds of thousands of people are made redundant every year in the UK for all sorts of reasons that have nothing to do with their performance. The important thing is not that you've lost your job, but how you deal with losing your job.

Talk to people

Being made redundant is nothing to be ashamed of. Talk to friends, family, or a professional if you're struggling. Having social support can help you cope with the stress and uncertainty.

If you're finding it difficult to manage your emotions, Mind's A-Z of mental health is a helpful starting point.

Be kind to yourself

Losing your job can affect your self-esteem and sense of identity, especially if your work has always been a big part of your life.

Use this time to reflect on what makes you happy and fulfilled outside of work. Write a list of your skills, qualities, and achievements - and take a moment to celebrate them. You're more than your job title.

If you need additional support, organisations like Acas and Citizens Advice offer free, confidential advice on employment rights and redundancy.

Planning your finances after redundancy

Money worries are often one of the first things you'll think about after being made redundant. Taking control of your finances early will help reduce stress and give you breathing space to find your next role.

Create a realistic budget

If you receive a redundancy payment, resist the temptation to spend it straight away. Instead:

1. List all your monthly outgoings (rent or mortgage, bills, food, transport, etc.)
2. Work out how long your redundancy payment (and any savings) will last
3. Cut back on non-essential spending where you can
4. Set yourself a realistic timeline for your job search

Some people find it helpful to set aside a regular time each week to review their finances. This stops bills from piling up and helps you stay on top of things.

Understand what benefits you can claim

You may be entitled to state benefits during your period of unemployment, such as:

• Universal Credit (which replaced Jobseeker's Allowance and other benefits)
• Council Tax Reduction
• Help with mortgage interest payments

To find out what you're entitled to, visit your local Jobcentre Plus or use the benefits calculator on GOV.UK.

Get free money advice

If you're struggling to manage your finances or need help with debt, organisations like Citizens Advice and MoneyHelper offer free, impartial advice.

Searching for work after redundancy

Once you've had time to process the news and sort out your finances, it's time to focus on finding your next role.

Update your CV

Your CV is your first opportunity to make a strong impression on potential employers. If it's been a while since you last updated it, now's the time to give it a complete refresh.

Focus on:

• Your most recent and relevant experience
• Achievements and results (not just responsibilities)
• Skills that are transferable to the roles you're applying for
• A strong personal statement that explains what you're looking for next

Even if you were made redundant, there will be skills and achievements from your previous role that you can highlight. Frame your redundancy positively - it's a business decision, not a reflection of your abilities.

For help updating your CV, check out our CV templates and tips guide, or download our free redundancy CV template.

How to write a CV

Tailor your applications

Don't send the same generic CV and cover letter to every employer. Take time to tailor each application to the specific role and company you're applying to.

Use the job description to identify the key skills and experience they're looking for, and make sure these are clearly highlighted in your application.

Redundancy cover letter template

Use your network

Let people know you're looking for work. Reach out to former colleagues, connect with people in your sector on LinkedIn, and don't be afraid to ask for introductions or recommendations.

Networking isn't just about finding job openings - it's also about getting advice, building relationships, and staying visible in your sector. 

What is networking?

Consider your options

You don't have to jump straight into the same type of role you had before. Redundancy can be an opportunity to:

• Change careers or try something new
• Retrain or gain new qualifications through Reed Courses
• Try freelance work or set up your own business
• Look for flexible, part-time, or temporary roles

If you're not sure where to start, our career change CV template can help you showcase your transferable skills.

Retraining: What you need to know

Find a job quickly

If you need to find work fast, focus on roles with immediate start dates and industries with high demand. Read our guide on how to find a job fast for practical tips on speeding up your job search.

Set yourself a routine

It's tempting to spend every waking hour applying for jobs, but this can quickly lead to burnout. Instead:

• Set aside specific times each day for job searching and applications
• Take regular breaks
• Keep active and maintain a healthy routine
• Make time for hobbies and social activities

Looking after yourself will help you stay motivated and present your best self to potential employers.

Job search: Dos and don’ts

Coping with redundancy at 50 (and beyond)

If you're facing redundancy later in your career, you might have specific concerns about age discrimination or finding a new role. The good news is that your experience and expertise are valuable assets.

Use your experience to your advantage

Decades of professional experience mean you have:

• Deep sector knowledge
• Strong problem-solving skills
• Proven leadership abilities
• A valuable professional network

Make sure these strengths come across clearly in your CV and interviews. Consider roles where your experience will be particularly valued, such as consultancy, mentoring, or management positions.

Consider your options

Redundancy later in life can be an opportunity to:

• Move into consultancy or freelance work
• Explore flexible or part-time roles
• Retrain in a new field through courses and qualifications
• Start your own business

For inspiration, read our guide to jobs for older people, which covers great opportunities for experienced professionals.

Know your rights

The Equality Act 2010 protects you from age discrimination during recruitment. Employers cannot reject you simply because of your age. If you believe you've been discriminated against, you can seek advice from Acas or Citizens Advice.

How to make a career change at 40

Final thoughts

Being made redundant is never easy. But with the right support, a clear understanding of your rights, and a positive approach to your job search, you can turn this challenge into an opportunity.

Remember:

• Don't take it personally - redundancy is a business decision
• Know your rights and make sure you receive everything you're entitled to
• Look after your mental health and reach out for support when you need it
• Take control of your finances and plan ahead
• Update your CV, tailor your applications, and use your network
• Consider this as a chance to move forward in your career or explore new directions

For more help and support:

• Search for jobs on Reed.co.uk
• Find out about your employment rights on GOV.UK
• Get free advice from Acas
• Access mental health support from Mind

Frequently asked questions

Can I be made redundant while on maternity leave?

Yes, you can be made redundant while on maternity leave, but you have additional legal protection. If suitable alternative vacancies exist in your organisation, your employer must offer them to you as a priority over other employees. This protection lasts for 18 months from the date of your baby's birth. For full details, visit Acas' guidance on redundancy protection.

What happens when you get made redundant?

When you're made redundant, your employer should consult with you, explain why your role is being made redundant, and give you a written explanation. You'll receive a notice period (or payment in lieu of notice) and may be entitled to statutory redundancy pay if you've worked for your employer for two years or more. Your employer should also offer you any suitable alternative roles if they're available.

If you are made redundant, what are you entitled to?

You're entitled to a notice period, consultation with your employer, and the chance to appeal the decision. If you've worked for your employer for two years or more, you're also entitled to statutory redundancy pay, reasonable time off to look for work, and consideration for any suitable alternative roles within the organisation.

Can I negotiate my redundancy package?

Yes, you can try to negotiate a better redundancy package, especially if your employer is offering more than the statutory minimum. Consider negotiating elements like notice period, pay, references, and support with job searching or training.

How long does the redundancy process take?

The length of the redundancy process depends on your employer and the number of redundancies being made. If collective consultation is required, this must last at least 30 days (for 20-99 redundancies) or 45 days (for 100+ redundancies) before the first dismissal. Individual redundancy processes can vary, but your employer must give you adequate notice.

Will redundancy affect my pension?

It depends on the type of pension scheme you have. If you have a defined contribution pension, your pension pot will remain yours and continue to grow (or decrease) based on investment performance. If you have a defined benefit pension, your entitlement will depend on your scheme rules. Contact your pension provider for specific advice.

Basic State Pension: What you need to know

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