I've Just Been Made Redundant — What Do I Do First?

Take a breath — then act quickly

Being told you're being made redundant is a shock, even if you saw it coming. The instinct is either to sign everything immediately to make it go away, or to do nothing while you process it. Neither serves you well.

There are a small number of time-sensitive actions that matter in the first 48 hours. Here they are in order.

1. Do not sign anything yet

If your employer hands you a settlement agreement at the same time as telling you you're being made redundant, do not sign it on the spot. A settlement agreement is a legally binding contract that waives your right to bring Employment Tribunal claims. You cannot sign one without first receiving independent legal advice — in fact, a settlement agreement is not legally valid unless you have done so.

You are entitled to time to consider it. Most employment solicitors expect to see a reasonable period — typically a week or more. Your employer cannot lawfully pressure you into signing immediately.

See our guide on what settlement agreements mean and what you're signing away before you do anything.

2. Work out your statutory entitlement

Your employer must pay you at least the statutory minimum. That figure depends on your age, your salary (up to the weekly cap), and how many complete years you have worked for them.

Knowing your statutory entitlement before any negotiation puts you in a far stronger position. It is the floor — anything below it is not a offer, it is a shortfall. Use our calculator to find your figure in a few minutes.

See our guide on how to check whether your redundancy offer is fair once you have your statutory number.

3. Check your notice entitlement

You are entitled to notice — either worked notice or pay in lieu of notice (PILON). The statutory minimum is one week per complete year of service, up to a maximum of 12 weeks. Your contract may give you more — check it.

If your employer has given you no notice and no PILON, that is a separate legal issue — money they owe you on top of your redundancy pay. It is not optional, and it does not go away because you have been made redundant.

4. Calculate your accrued holiday pay

Any untaken statutory or contractual holiday must be paid out when your employment ends. Check your remaining holiday balance carefully — this is a common area where final payments fall short.

If you are in a leave year that runs from January to December and you are leaving in April, you have accrued roughly four months of your annual entitlement. A simple way to calculate it: (days accrued ÷ total annual entitlement) × annual holiday pay value.

5. Note your tribunal deadlines

You do not need to do anything about this today, but write these dates down now while they are fresh:

• Unfair dismissal: 3 months less one day from your last day of employment
• Redundancy pay claim: 6 months less one day from your last day of employment

These are hard deadlines. Employment Tribunals rarely grant extensions. And before you can make a tribunal claim, you must first contact ACAS to start Early Conciliation — which pauses the clock while negotiations are ongoing.

See our guide on how long you have to claim redundancy pay for the full details on time limits.

A note on the consultation process

If your employer is making more than 20 employees redundant, they are legally required to conduct a collective consultation lasting at least 30 days (45 days if 100 or more employees are affected). If they have not done this, or if the consultation was a formality rather than a genuine process, this may constitute a failure to comply with the law.

Even in individual redundancies, your employer must follow a fair process — explaining the reason for redundancy, considering alternatives, and giving you the opportunity to respond. Failure to do so may make the redundancy unfair, even if the business reason is genuine.

What comes next

Once you know your statutory entitlement, you are in a position to assess whether your employer's offer is fair — and if not, to push back professionally. A well-structured letter citing the correct legislation and the correct figures changes the dynamic of the conversation significantly.