Just Been Made Redundant? What to Do First, and What Can Wait

This week: get it in writing

A meeting where you are told your role is at risk is not the moment to take notes on figures. Ask afterwards for an email or letter that sets out:

• whether your role is at risk or has been confirmed as redundant, since at-risk means consultation is still going on
• your leaving date, and whether you will work your notice, go on garden leave or be paid in lieu
• the redundancy pay figure, and how much of it is statutory and how much is extra
• how much holiday you have left, and whether it will be paid or taken before you go
• what happens to your pension contributions and any company benefits, such as health cover or a car
• whether you can apply for other roles in the company, which employers should offer where they exist

If you are one of many, ask whether consultation has started and how you can take part. Acas explains what consultation should involve, and your employer should consult you before the decision is final.

Check the redundancy pay figure

You are entitled to statutory redundancy pay if you are an employee and have worked for your employer for at least two years without a break. The amount depends on your age, your years of service and your weekly pay. For each full year you worked, you get half a week's pay for years under 22, one week's pay for years aged 22 to 40, and one and a half weeks' pay for years aged 41 and over. Only your last 20 years count, and for redundancies on or after 6 April 2026 weekly pay is capped at £751, so the most anyone can get is £22,530. That is all set out on gov.uk's redundancy pay page.

Many employers pay more than this, through a contract or a redundancy policy. If your figure is lower than the calculator's, ask how it was worked out before you do anything else.

Notice: worked, garden leave or paid in lieu

Your contract sets your notice period, but the law sets a floor: one week if you have worked there between a month and two years, then one week for each full year up to 12 weeks, as gov.uk's notice periods page explains. You will either work it, be sent home on full pay (garden leave), or leave straight away and be paid for it, which is called pay in lieu of notice.

If you have two years' service, you can also ask for reasonable time off during your notice to look for work or go on training. Acas sets out the rules: your employer has to pay you for it, but only up to 40% of a week's pay in total. What each option means for the dates on your CV is covered on our CV after redundancy page.

If you are handed a settlement agreement

A settlement agreement is a contract in which you agree not to take your employer to a tribunal, usually in return for a payment above what you would otherwise get. Employers often use one alongside an enhanced package. It is only legally binding if you have had advice on it from an independent, qualified adviser, usually a solicitor, who is named in the agreement, as Acas explains.

This is the point where you need a lawyer and not a blog post. Ask the employer whether they will pay towards that advice. Employers often do, though they do not have to. Do not sign in the meeting, and do not let a deadline of a day or two rush you: asking for time to take advice is normal.

Voluntary redundancy: take it or wait?

When an employer needs to cut roles, it may ask for volunteers first, often with a better package than it would pay later. Your employer can turn you down, and Acas has guidance on what volunteering involves. Whether volunteers always get statutory redundancy pay on top is not something gov.uk spells out, so get the full package in writing and check it against the calculator before you decide.

It is often worth taking if:

• you were already thinking of leaving, or of a change of direction
• the package is clearly better than the statutory amount you would get if your role went anyway
• your skills are in demand and you could expect to find work within the time the money would cover
• staying means a restructured role you would not want

Think twice if:

• the package is barely more than the statutory amount you would get if your role went anyway
• your sector is shrinking and the next job may take longer to find than the package lasts
• you are close to a pension age or a service date that would change what you get
• you are volunteering because you fear being picked later, when the job may not be at risk at all

The first £30,000 is tax free, mostly

The first £30,000 of a redundancy payment is usually free of tax and National Insurance, and statutory and extra redundancy pay both count towards that £30,000. Anything you would have been paid as earnings is taxed as normal: your final wages, holiday pay, bonuses and pay in lieu of notice. Gov.uk sets out which is which, and it is worth checking your final payslip against it, since a lump sum is easy to tax in the wrong bucket.

If your package is above that, or it includes shares or a pension payment, an accountant or the adviser on your settlement agreement can tell you what you will actually take home.

What to claim, and when

Claim as soon as you stop working, even if you think you may not qualify. The Jobcentre decides how your notice pay and redundancy pay affect what you get. The government's guide to claiming benefits after redundancy is the place to start.

• New Style Jobseeker's Allowance depends on the National Insurance you paid in recent tax years, not on your savings or your partner's income, and can be paid for up to six months. Check eligibility on gov.uk. Gov.uk does not say plainly how redundancy pay affects it, so ask when you claim or call Citizens Advice.
• Universal Credit is means tested. Savings over £16,000 rule you out, and savings between £6,000 and £16,000 reduce what you get, as gov.uk's savings rules explain. Tell them about any redundancy pay you receive.
• Holiday you have not taken has to be paid when you leave, as gov.uk confirms.
• If your employer has gone bust and cannot pay, you can claim redundancy pay, owed wages and holiday pay from the government's Redundancy Payments Service.

Your workplace pension stays yours when you leave. The money stays invested, and you can usually leave it where it is or move it into a new employer's scheme later, as gov.uk explains. Ask for a statement before your last day so you know what is there.

It is not about you, and the figures show it

Being picked says very little about you when this many roles are going. Employers who plan to cut 20 or more jobs at one site within 90 days must tell the government on a form called an HR1. The Insolvency Service's HR1 figures show 2025 as the highest year since 2020, though still far below 2020 itself, when 791,707 redundancies were proposed.

Recruiters see these numbers too, and most will have interviewed plenty of people in your position this year.

Then the CV

Once the money and the dates are settled, the job search is the next step, and for most people that starts with a CV last written years ago. Our page on writing a CV after redundancy covers what to say about it, the dates to use while you are on notice, and what has changed since you last applied for a job. If time has already passed since your last day, our guide to explaining a gap in your CV sets out how much to say for how long.

Dates to put in your diary