Redundancy Handover: Statutory Rights and Immediate Actions

The following rights apply to employees who have been made redundant with at least two years of continuous service with the same employer:

• Statutory redundancy pay — calculated by age bracket and length of service, applied to weekly pay up to the statutory cap (£751 per week as of April 2026, maximum award £22,530). Use the GOV.UK calculator at gov.uk/calculate-your-redundancy-pay for your specific figure. Your employer may offer enhanced redundancy pay above the statutory minimum — check your contract.
• Notice period — you are entitled to a minimum statutory notice period: one week per year of service, up to a maximum of 12 weeks, or the contractual notice period if longer. You can be paid in lieu of notice (PILON) rather than required to work it.
• Consultation — your employer is required to consult with you before the redundancy is confirmed. If this did not happen, or was inadequate, this may affect the validity of the process.
• Time off to look for work — if you have two years of service, you are entitled to reasonable paid time off during your notice period to look for new employment or arrange training.
• Accrued holiday — any unused holiday must be paid out at your normal rate. Calculate days accrued minus days taken in the current holiday year.

Full statutory details are available at gov.uk/redundancy-your-rights.

Put the following to HR in writing before your last day:

• Written confirmation of redundancy, including the stated reason and effective date
• Whether redundancy pay is statutory or enhanced, and the total gross figure
• Whether you are required to work your notice period or receiving PILON — and the gross amount of PILON if applicable
• The date and method of the final payment (redundancy pay, notice pay, accrued holiday)
• The process and expected date for receiving your P45
• Whether the company will provide a reference, and in what format (factual-only, or fuller)
• The process for returning company equipment
• Whether any restrictive covenants in your contract apply post-departure, and for how long

• Tax on redundancy pay — the first £30,000 of a redundancy payment is generally free of income tax and National Insurance. Amounts above £30,000 are taxable as income. PILON (payment in lieu of notice) is treated as earnings and taxed in full. Check whether your payment is being processed correctly.
• Universal Credit — you can claim Universal Credit immediately. The amount is means-tested and affected by savings and household income. If your redundancy payment takes savings above £16,000, this will initially affect eligibility. Lump-sum payments are assessed differently from regular savings — check the current rules at gov.uk/universal-credit.
• New Style JSA — if you have paid sufficient National Insurance contributions in the last two full tax years, you may be entitled to New Style Jobseeker's Allowance alongside or instead of Universal Credit. Check eligibility at gov.uk/jobseekers-allowance.
• Pension — redundancy does not affect an accrued defined benefit pension, but it ends contributions to a defined contribution scheme. Note the current pot value and provider contact details. You may be able to continue contributing independently.

Once the redundancy-specific items above are noted, proceed to Day One, then Financial Snapshot. The process is the same from here regardless of departure type.