Maternity Leave and Redundancy: What UK Employers Need to Know About Employee Rights

If you’re running a business in the UK and employ staff, there’s a good chance that, at some point, you’ll need to handle maternity leave and redundancy scenarios. These two major HR topics can overlap, and when they do, understanding your obligations as an employer is crucial for avoiding legal disputes and protecting your business reputation.

It’s common for employers to feel a bit lost when it comes to maternity leave rights redundancy rules - after all, the laws can get complex, and the stakes are high. But don’t stress! With a clear understanding of your obligations and the right legal foundations in place, you can manage these situations fairly, confidently, and compliantly. Keep reading to find out how.

What Are Maternity Leave Rights When It Comes to Redundancy?

Let’s break down what maternity leave rights redundancy actually means for your business. In the UK, employees have robust legal protections on both fronts:

• Maternity Leave Rights: Every employee is entitled to up to 52 weeks’ maternity leave, regardless of their length of service. This includes 26 weeks of Ordinary Maternity Leave and a further 26 weeks of Additional Maternity Leave.
• Redundancy Protections: If you’re making redundancies and one of the affected employees is on maternity leave, you must follow specific legal processes designed to prevent unfair discrimination. These protections are enshrined in the Employment Rights Act 1996 and associated regulations.

When redundancy arises during maternity leave, employees have special rights - including priority status for suitable alternative vacancies. Not following these rules can leave your business open to costly claims for unfair dismissal - or even automatic unfair dismissal claims, which carry extra risks for employers.

Can You Make Someone Redundant During Maternity Leave?

This is one of the first questions many employers ask. The short answer is: yes, but only if it’s a genuine redundancy - and not related to the fact that the employee is pregnant or on maternity leave.

Redundancy during maternity leave is lawful when:

• The redundancy is due to a real business need (for example, closing a department or restructuring, not personal performance)
• A fair and transparent selection process is followed
• Maternity leave status doesn’t factor into your decision-making (this would be discrimination)

Importantly, you cannot use redundancy as a way to “get rid of” an employee because they’re on leave. Doing so is strictly prohibited by law.

What Extra Redundancy Rights Do Employees Have on Maternity Leave?

This is where things get more specific. Employees who are on maternity leave (also known as "protected period") have these additional redundancy rights:

• Priority for Suitable Alternative Roles: If you have a suitable alternative position, anyone on maternity leave at risk of redundancy must be offered it first - even before other at-risk employees. This right is absolute: you can’t require them to apply or compete for the role.
• Written Notification: If making an employee on maternity leave redundant, you must confirm the decision in writing, explaining the reasons and the process followed.
• Protection from Unfair Dismissal: A dismissal will be automatically unfair if the real reason is pregnancy, maternity leave, or childbirth, or if you haven’t complied with the rules above.

Failure to follow these steps can result in significant legal claims. Many businesses fall down here simply by being unaware of the legal steps for redundancy relating to maternity, so it’s worth reviewing your redundancy process closely.

How Does the Suitable Alternative Role Requirement Work?

This requirement is at the heart of maternity leave rights redundancy issues. But what counts as a “suitable alternative role”?

• It must be appropriate for the employee in terms of location, status, and duties
• Pay, benefits, and terms must be no less favourable than the original role
• If more than one protected employee is at risk, prioritise based on fair and transparent criteria

If you don’t have any suitable alternative positions to offer, normal redundancy rules (consultation, selection process, notice, and redundancy pay) apply - but you still must show you considered all options and treated the employee fairly during their leave.

What’s the Consultation Process for Redundancy on Maternity Leave?

The law requires meaningful consultation with all employees at risk of redundancy - including those on maternity leave. Here are the steps to ensure you do this both lawfully and sensitively:

1. Notify Early: Contact the employee as soon as they are at risk. Don’t delay simply because they are on leave.
2. Arrange Consultations: Offer to meet or discuss options in a way that is convenient for the employee (in person, by phone, or virtually). Ensure they have the same opportunity as others to participate in the process.
3. Share Information: Clearly explain the reasons for redundancy, selection criteria, and any alternative roles.
4. Listen and Respond: Allow the employee to ask questions and raise concerns, and respond openly and empathetically.
5. Document Everything: Keep written records of all contact and outcomes, as you may need to show you followed the process fairly.

The key is to ensure equal treatment for all staff at risk, regardless of whether they are present in the workplace or on leave.

Do Employees on Maternity Leave Still Get Redundancy Pay?

If an employee is made redundant while on maternity leave, they are entitled to the same statutory (or enhanced, if you offer it) redundancy pay as other employees - provided they meet the qualifying conditions (typically at least 2 years’ continuous service).

Being on maternity leave does not reduce redundancy pay, notice pay, or other end-of-employment entitlements. You’ll also need to calculate holiday entitlement up to their date of leaving, as this is often a point of confusion for employers.

What Are the Risks If You Get Maternity Leave Redundancy Wrong?

Ignoring or mishandling maternity leave rights redundancy laws can result in:

• Automatic Unfair Dismissal Claims: These can carry unlimited compensation, unlike ordinary unfair dismissal claims.
• Discrimination Claims: Dismissing an employee where maternity is a factor (even in part) is unlawful and can lead to tribunal claims and reputational damage.
• Financial Penalties: Including back pay, damages, and potential costs orders if a claim is successful.

The risk is especially high around failing to offer suitable alternative roles or not consulting properly. It’s wise to familiarise yourself with fair dismissal steps and seek advice when in doubt.

What About Keeping Records and Handling Paperwork?

Documentation is your best defence in redundancy and maternity situations. Make sure to:

• Keep copies of all communications (invitations to consultation, meeting notes, written confirmations of redundancy)
• Retain records for a reasonable period (at least 6 years is a good best practice in employment cases)
• Follow GDPR rules on ex-employee records - only keep what you need, for as long as needed, and store it securely

This will come in handy if you ever have to defend your decisions or show you complied with the law.

What Legal Documents and Policies Should Employers Have?

Robust, up-to-date employment contracts and workplace policies set the foundation for getting redundancy and maternity leave right. Consider updating or drafting the following:

• Employment contracts that clearly outline rights and processes for leave and redundancy
• Staff handbooks that include your maternity, family leave, redundancy, and equal opportunities policies
• Redundancy process checklists and consultation letter templates (these help ensure you cover all legal steps)
• Privacy/compliance policies to handle employee data post-employment

Using professionally drafted documents protects your business and demonstrates your commitment to fair treatment.

How Can You Avoid Discrimination or Automatic Unfair Dismissal Claims?

To protect your business and ensure maternity leave rights redundancy compliance, follow these tips:

• Never factor in pregnancy or maternity leave when making redundancy decisions - every decision must be based solely on business needs
• Always offer suitable alternative roles to those on maternity leave before others, and confirm offers in writing
• Consult and communicate with all at-risk employees in a timely and sensitive manner
• Apply selection criteria consistently and transparently
• Ensure you have clear, up-to-date contracts and policies in place

If you’re not sure, it’s always safer to seek advice before taking action - this can save you both time and stress down the line.

Where Can Employers Get Further Guidance on Maternity Leave and Redundancy?

Getting maternity leave rights redundancy right isn’t just about ticking boxes - it’s about supporting your team and protecting your business. If you’re ever unsure, Sprintlaw UK has a range of free guides to help you on topics like:

• Ending employment contracts fairly
• Redundancy laws and requirements in the UK
• Updating employment and redundancy policies
• Employee onboarding and offboarding processes

For advice tailored to your specific situation - especially if you’re planning a redundancy or have a staff member on maternity leave - it’s wise to speak to a legal expert who can assess your risks and help you stay compliant.

Key Takeaways: Maternity Leave Rights Redundancy Essentials

• Employees on maternity leave have enhanced rights during redundancy, including priority for suitable alternative roles
• Redundancy during maternity leave is legal only if it’s genuinely required and not related to leave or pregnancy
• You must carry out fair, thorough consultation with all at-risk staff, including those on leave
• Failure to follow the law could trigger costly automatic unfair dismissal or discrimination claims
• Update your contracts, staff handbooks, and processes so you’re protected from day one
• Keep thorough records and seek professional advice if unsure at any stage

If you’d like expert help managing maternity leave rights redundancy, or want to review your contracts and processes, just reach out to Sprintlaw UK for a free, no-obligations chat. We’re here to help you support your team and keep your business protected.
You can contact us on 08081347754 or team@sprintlaw.co.uk anytime.