Understanding your options when Redundancy is proposed: Employment Law guidance for employees in England &Wales

Practical support when your position at work becomes uncertain.

Few people ever expect to need an employment lawyer. When redundancy is first mentioned, most employees are not thinking about legal claims or tribunals. They are trying to understand what has changed, what this means for their income and security, and how to respond without making a difficult situation worse. Shock, uncertainty and a sense of loss are common, even where redundancy is presented as “nothing personal”. For many people, work is not just a job. It is routine, identity, stability and a source of self-worth. When that is suddenly put at risk, clear thinking can be hard.

Early expert employment law advice can be pivotal at this point. Not to inflame a situation, but to clarify your position, safeguard your interests, and help you make well-judged decisions as the process unfolds.

In most redundancy situations where a settlement agreement is proposed, employers will offer a contribution towards the employee’s legal fees. Having the right adviser at this stage, an expert employment solicitor on your side, can make a meaningful difference to both the outcome and the experience of the process.

What redundancy means in England and Wales

In legal terms, redundancy arises when an employer no longer needs a particular role, or fewer employees are required to do a certain type of work. It is not intended to be about performance or conduct. It is about the role, not the individual.

In practice, redundancy situations are rarely straightforward. Businesses restructure, merge teams, relocate operations or respond to financial pressure. In some cases, lines blur between redundancy, performance management and dismissal. Employees may be left uncertain whether redundancy is genuine or whether it is being used as a convenient label.

Employment law does not prevent employers from making redundancies. What it requires is that the process is genuine, fair and handled properly. Many disputes arise not because redundancy was unavoidable, but because the process was rushed, poorly explained or fundamentally flawed.

The importance of the early stages

Once redundancy is raised, formally or informally, employees are usually invited into a consultation process. This period is often described as exploratory, but it can have a significant influence on the final outcome.

Many employees instinctively try to be agreeable or accommodating at this stage. They may downplay concerns, make informal comments in meetings or emails, or accept explanations without question. This is an understandable reaction, but it can sometimes weaken their position.

Early guidance can help you pause and consider what you actually want and what might realistically be achievable. For some people, the priority is to keep their role or move into a suitable alternative position. For others, it is to leave with clarity, dignity and appropriate compensation. Neither approach is wrong. What matters is acting deliberately rather than reactively.

Consultation meetings and your role in them

Consultation is a central part of a fair redundancy process. It should be meaningful, not a formality. You should be given information about why redundancy is proposed, how roles have been selected, what criteria are being applied and whether alternatives have been considered. You should also be given an opportunity to respond and to raise questions or concerns.

In reality, consultation meetings can feel intimidating or one-sided. Employees may be unsure what they are entitled to ask, what information they can request, or how to raise concerns without appearing difficult or uncooperative. Careful preparation can make a real difference. Understanding what to document, what to clarify in writing and how to frame questions constructively helps ensure that the process is transparent and accountable. It is also important to understand what not to say. Casual remarks or frustrated emails can later be relied upon in ways that were never intended.

When the process feels rushed or unclear

A common feature of problematic redundancy situations is speed. Employers may be under financial pressure, facing internal deadlines or eager to bring matters to a close. Employees can feel pushed to accept decisions or proposals before they have had time to properly understand what is happening. Warning signs may include consultation that feels token, decisions that appear predetermined, vague or shifting explanations, or roles being described as redundant when the work itself appears to continue. This does not automatically mean that the redundancy is unlawful. However, it does mean that employees should proceed carefully. Raising concerns at the right moment and in the right way can preserve options without escalating matters unnecessarily. Timing and tone are often just as important as substance.

Large organisations and smaller employers

Redundancy processes can look very different depending on the employer. Larger organisations often have detailed policies and internal legal support. Processes may be structured but impersonal, and decisions can feel difficult to challenge because they are embedded in formal procedures.

Smaller or growing businesses may lack clear processes altogether. Communication may be inconsistent, documentation limited and decisions made informally. While this can create uncertainty, it can also leave employers more exposed if matters are not handled properly.

In both settings, the same principle applies. The way an employee responds at the outset can materially affect the final outcome.

Settlement agreements and redundancy exits

Settlement agreements are commonly proposed before a redundancy process is underway or where an employer wants to achieve a clean break. Employees are sometimes told that an offer is standard, fixed or non-negotiable. They may feel under pressure to accept quickly, particularly when emotions are already high or finances feel uncertain.

In reality, many settlement agreements are negotiable to some degree. The scope for improvement depends on the circumstances, the strength of the employee’s position and how discussions are handled. Legal advice is required for a settlement agreement to be valid. Beyond that, careful handling can help preserve existing offers while exploring whether better terms are achievable. This may include additional compensation, clarity around references, agreed wording about the reason for departure, or practical issues such as notice, benefits and tax treatment.

Handled properly, settlement discussions do not need to become adversarial. In many cases, a calm and measured approach leads to a better outcome for everyone involved.

Deciding what to do next

As redundancy situations progress, employees often reach a point where they need to make decisions about next steps. Some choose to continue engaging with the process in the hope of redeployment or a revised outcome. Others prefer to negotiate an exit and move on. A smaller number consider formal claims, particularly where the process has been fundamentally unfair or settlement cannot be reached.

There is no single right answer. What matters is understanding the implications of each option. This includes knowing what evidence to retain, how internal appeals fit into the process and how ACAS early conciliation operates if a claim is being considered.

Good employment law guidance does not push people towards conflict. It helps them act with intention, clarity and confidence.

The emotional reality of redundancy

Redundancy is not just a legal process. It is a human one. Uncertainty about income, future work and personal identity can be deeply unsettling. People may feel anxious, frustrated or embarrassed, even where relationships with their employer remain civil.

Clear, steady advice can help cut through the noise by providing structure and perspective when things feel overwhelming.

How we support employees at Eddison Cogan Lawyers

At Eddison Cogan Lawyers, we regularly advise employees facing redundancy, dismissal and settlement discussions. Our expertise in mediation and formal training in negotiation skills are often of significant quantifiable financial benefit to clients.

Our approach is practical, measured and discreet. We focus on helping you understand your options, protect your position and make decisions you will feel comfortable with in hindsight.

Most people want resolution, not confrontation. Our role is to help you navigate a difficult period with clarity and confidence, whatever direction matters take.

If you are currently facing redundancy or have been asked to consider a settlement agreement, we are happy to talk through your situation in confidence.

Frequently asked questions about redundancy for employees

What is redundancy under UK employment law (England and Wales)?

Redundancy arises where an employer no longer needs a particular role to be performed, needs fewer employees to carry out work of a particular kind, or is closing or relocating part of the business. It is about the role itself, not the individual. If the work continues largely unchanged but the employee is selected, this may raise questions about whether redundancy is genuine.

Does my employer have to consult me before redundancy?

Yes. Consultation is a core requirement of a fair redundancy process. This should be meaningful and involve explaining why redundancy is proposed, how selection decisions are being made, and whether alternatives have been considered. You should also be given an opportunity to respond and raise concerns. Consultation should not be treated as a formality or a decision that has already been made.

How long should redundancy consultation last in the UK?

There is no fixed minimum period for individual redundancies, but consultation must be genuine and allow sufficient time for discussion. Where 20 or more redundancies are proposed within a 90-day period, collective consultation rules apply and statutory minimum timeframes are triggered. A process that feels rushed may warrant careful scrutiny.

Can I challenge redundancy selection criteria in England and Wales?

In many cases, yes. Employers should use fair, objective and consistently applied selection criteria. If criteria are unclear, subjective, or appear to disadvantage you unfairly, this can be raised during consultation. It is usually best to do this carefully and in writing, so concerns are properly recorded without escalating matters unnecessarily.

Am I entitled to statutory redundancy pay (and how is it calculated)?

Statutory redundancy pay is available to employees with at least two years’ continuous service, provided redundancy is genuine. The amount depends on age, length of service and weekly pay, subject to statutory limits. Some employers also offer enhanced redundancy payments under contractual or discretionary schemes, which should be checked carefully.

What is a settlement agreement in redundancy, and why is it offered?

A settlement agreement is a legally binding agreement under which an employee waives certain legal claims, usually in return for compensation and agreed exit terms. Employers often propose settlement agreements in redundancy situations to achieve clarity and finality. Independent legal advice is required for a settlement agreement to be valid.

Can a redundancy settlement agreement be negotiated?

Often, yes. While not every offer can be improved, many settlement agreements allow scope for discussion. This may include compensation, notice arrangements, references, tax treatment, or how the reason for departure is described. How discussions are handled can be just as important as the legal position itself.

Does my employer have to pay my legal fees for a settlement agreement?

In most cases, employers offer a contribution towards an employee’s legal fees for advice on a settlement agreement. This is standard practice and should be confirmed in writing. Having advice that goes beyond basic signing requirements can make a meaningful difference to the overall outcome.

What should I not say or write during redundancy consultation?

Informal comments, emails sent in frustration, or attempts to appear overly accommodating can later be relied upon in ways that were not intended. It is sensible to take time before responding, keep communications measured, and avoid making assumptions or concessions without advice. Knowing what not to say can be just as important as knowing what to raise.

Can I claim unfair dismissal after redundancy in England and Wales?

Potentially. Employees with at least two years’ service may be able to claim unfair dismissal if redundancy is not genuine or the process is unfair. Strict time limits apply. Claims must usually be started within three months less one day of dismissal, following early conciliation through ACAS.

Do I have to accept redundancy or a settlement agreement straight away?

No. While employers may encourage prompt decisions, employees are usually entitled to reasonable time to consider proposals, particularly where legal rights are affected. Taking advice early can help clarify what flexibility exists without jeopardising existing offers.

When should I get legal advice about redundancy or a settlement agreement?

Many people wait until decisions feel urgent, but earlier advice often preserves more options. Speaking to an employment solicitor as soon as redundancy is proposed can help protect your position, avoid missteps, and allow you to approach discussions with clarity and confidence.

The following note is included for clarity and completeness: This article is provided for general information purposes only and does not constitute legal advice. The law in England and Wales may change, and its application will depend on individual circumstances. Reading this article does not create a solicitor-client relationship. You should seek independent legal advice before taking or refraining from any action based on the information contained here.