Redundancy Notice Periods in the UK: What to Give and When It Starts

Making roles redundant is never easy, but sometimes it’s the right commercial decision. When redundancies are on the table, the notice period is one of the most important parts to get right.

Handled well, you’ll reduce risk, treat people fairly and keep your business running smoothly during the transition. Handled poorly, you could face claims for notice pay, unfair dismissal, or even collective consultation penalties.

In this guide, we break down redundancy notice periods under UK law from an employer’s perspective - what they are, when they start, how much notice to give, if and when you can pay in lieu, and practical steps to stay compliant.

What Is A Redundancy Notice Period?

A redundancy notice period is the minimum amount of notice you must give an employee whose role is being made redundant before their employment ends. It’s separate from redundancy pay. Notice is about time (or pay in lieu of time); redundancy pay is a statutory or contractual payment based on length of service.

In UK law, the core rules sit mainly in the Employment Rights Act 1996 (ERA 1996). Employees with at least one month’s service are entitled to statutory minimum notice, unless a valid contractual notice clause gives them more. You can give longer contractual notice than the statutory minimum, but you can’t lawfully give less.

Importantly, the duty to give notice comes after you’ve completed a fair redundancy process. That usually includes warning and consultation, using fair selection criteria, exploring alternatives to redundancy, and considering suitable alternative roles. Notice is the final stage when you confirm dismissal by reason of redundancy.

When Does The Redundancy Notice Period Start And How Much Notice Is Required?

When Notice Starts

The redundancy notice period starts on the date the employee is given clear, unequivocal notice of dismissal by reason of redundancy. In practice, this is usually when:

• You deliver a written outcome letter confirming redundancy, including the termination date and their right of appeal; or
• You communicate notice in a meeting and follow up in writing the same day.

For legal certainty, always confirm notice in writing and record when it was sent and received. If you post the letter, the effective date may be when the employee has a reasonable opportunity to read it (which can differ from the posting date). Email is often clearer and faster, but make sure you can evidence delivery.

Notice should only be issued after consultation has concluded and you’ve considered representations. If you give “notice” before a fair process is complete, there’s a risk the dismissal is unfair.

Statutory Minimum Notice Periods

Under ERA 1996, the statutory minimum notice you must give is:

• At least one week’s notice if employed between one month and two years;
• One week’s notice for each complete year of service between two and 12 years; and
• 12 weeks’ notice for 12 or more complete years of service.

This is sometimes called the statutory notice period for redundancy. It applies unless your contract gives a more generous amount. Many contracts set out a higher, fixed notice (e.g. three months) for certain roles.

Contractual Notice Vs Statutory Notice

Check the Employment Contract. If contractual notice is longer than statutory, you must honour the longer period. If the contract is silent or provides less than statutory, the statutory rules take precedence. Some contracts include a “payment in lieu of notice” (PILON) clause or garden leave clause - both affect how the notice period is managed, but not the entitlement to pay.

Continuous Service And Breaks

Notice is calculated on continuous service up to the point notice is given. Watch for complexities such as breaks in service, re-engagements or TUPE transfers, which can carry over service. If you’re unsure how to calculate service for notice, get specific advice before issuing notice to avoid underpayment risks.

Do You Have To Pay During The Redundancy Notice Period?

In most cases, yes. Employees are entitled to normal pay and benefits during their notice period, whether they work it or not (subject to lawful PILON). The default expectation is that notice is worked. However, many employers choose alternative approaches.

Option 1: Work The Notice

The employee continues to work, receives normal pay, benefits and accrues holiday as usual until the termination date. You can also place them on garden leave if the contract allows (they remain employed and paid, but don’t perform duties or access systems). Garden leave is often used for more senior staff or where there are confidentiality and commercial concerns.

Option 2: Payment In Lieu Of Notice (PILON)

With a valid PILON clause, you can end employment immediately and pay an amount equal to what the employee would have earned during the notice period. Key points:

• PILON covers basic salary and, depending on the contract and custom, may need to reflect benefits, allowances and bonuses that would have accrued during notice. The safest approach is to calculate what they would have received had they worked notice in full.
• Tax applies as normal to salary elements. Some termination payments have specific tax rules - get payroll advice before processing.
• If you don’t have a PILON clause, paying in lieu can technically be a breach of contract (you’re terminating early), which may release the employee from certain post-termination restrictions. A deed of waiver/settlement can address this risk.

Holiday Accrual And Deductions

Holiday continues to accrue during notice. Options include:

• Allowing (or requiring, with proper notice) the employee to take holiday during the notice period; or
• Paying accrued but untaken holiday on termination.

If there’s an overuse of holiday, you may be able to make deductions from final pay - but only if your contract permits it and you follow the rules on wage deductions.

Sick Leave, Maternity/Family Leave And Notice Pay

Employees on sick leave or family-related leave (e.g., maternity, adoption, shared parental leave) can still be made redundant if the process is fair and lawful. Notice pay can be complex in these situations because statutory payments and contractual pay interact. For example:

• Statutory notice may need to be “topped up” to normal pay in some circumstances if contractual notice is not at least one week above statutory.
• Enhanced contractual notice pay terms or PILON clauses can change the calculation.

Where an employee is on protected leave, remember the priority right to suitable alternative vacancies. Getting tailored advice is strongly recommended before issuing redundancy notices in these cases.

Redundancy Pay Is Separate

Statutory redundancy pay (for eligible employees with 2+ years’ service) is a separate entitlement from notice pay. The redundancy payment is based on age, length of service and a capped weekly pay rate. Your contractual terms may be more generous than statutory. Confusing the two is a common mistake: the notice period must still be given (or paid in lieu) even if you’re paying a redundancy lump sum.

Can You Make Someone Redundant Without Notice?

Generally, no - not without compensating them for notice. Your lawful options are:

• Give the required notice and have them work it;
• Put them on garden leave (if the contract allows); or
• Terminate immediately with a valid PILON and pay the correct amount in lieu.

You can’t usually make an employee redundant “on the spot” with no notice and no pay. That’s different from summary dismissal for gross misconduct, which is not redundancy and requires a different fair process and a solid factual basis. Using redundancy to avoid due process or notice is risky and likely unfair.

There are limited scenarios where no notice is required (e.g., truly casual workers without continuing employment). For standard employees, assume notice or PILON will be required.

Collective Redundancies And Protective Awards

If you propose 20 or more redundancies at one establishment within 90 days, additional rules apply under the Trade Union and Labour Relations (Consolidation) Act 1992 (TULRCA). You must collectively consult with appropriate representatives for a minimum period (at least 30 or 45 days depending on numbers) and notify the Secretary of State. Failing to collectively consult can lead to protective awards of up to 90 days’ gross pay per affected employee. These are in addition to notice obligations.

Practical Steps And Documents For Employers

Notice periods are only one piece of a fair and compliant redundancy. Here’s a practical workflow from an employer’s perspective.

1) Plan The Business Rationale And Selection

• Articulate the genuine redundancy rationale (e.g., restructure, technology change, business closure).
• Define selection pools and criteria that are objective and non-discriminatory.
• Prepare a timeline that includes consultation, consideration of alternatives, and notice dates.

2) Check Contracts And Policies

• Review each Employment Contract for notice, PILON, garden leave, and benefits.
• Review your Staff Handbook to align your process with internal policies on redundancy, consultation and selection.
• Identify any enhanced redundancy schemes or past practice (custom and practice) that could create expectations.

3) Consult Fairly

• Hold individual consultation meetings, share the business rationale, and invite feedback and alternatives.
• For collective scenarios, arrange representative elections where needed and follow TULRCA timelines.
• Explore suitable alternative employment and offer trial periods where appropriate.

4) Confirm Redundancy And Serve Notice

• Issue a clear written outcome letter confirming redundancy, the notice period, termination date, whether it will be worked, garden leave or PILON, and the breakdown of payments (notice pay, redundancy pay, holiday, bonuses/commission handling, and any deductions).
• Set out the right of appeal and the appeal process.
• Record when notice is given and when the notice period ends - this helps answer “when does the redundancy notice period start” if it’s later questioned.

5) Process Payments Correctly

• Calculate notice pay carefully, including allowances and benefits where applicable.
• Process statutory or contractual redundancy pay separately from notice pay.
• Handle holiday accrual, outstanding expenses, loans and any lawful wage deductions according to contract and law.

6) Manage Risk With The Right Documents

• Where you’re using PILON without a clause, consider a deed of settlement to manage post-termination restrictions and waiver of claims.
• Use robust letters at each stage to evidence your fair process - from “at risk” letters to consultation invites and final notice.
• Sense-check the overall process against an employer checklist for ending an employment contract to reduce disputes.

7) Keep Records And Communicate Well

• Document selection criteria, scoring and alternatives considered.
• Communicate consistently and empathetically - it matters for morale and reduces legal risk.
• Be ready to provide references and handle subject access requests appropriately.

Key Employer FAQs About Notice And Pay

Employers frequently ask variations of the same questions. Here are short answers you can use as a sense-check.

• What is the notice period for redundancy? - The longer of the statutory minimum (1–12 weeks based on service) or the contractual notice in the Employment Contract.
• How much redundancy notice should we give? - As above; check each contract and service length. Don’t forget collective consultation timelines if 20+ roles are affected.
• Can we pay redundancy pay in lieu of notice? - You can pay in lieu of notice (PILON) for the notice period if the contract allows (or by agreement), but that’s separate from redundancy pay - both may be due.
• When does the redundancy notice period start? - When clear written notice of redundancy is communicated after a fair consultation process.
• Can someone be made redundant without notice? - Not usually. If it’s truly redundancy, either work notice, garden leave or PILON. Instant termination usually relates to misconduct and follows a different process.

Don’t Confuse Redundancy With Other Terminations

Redundancy is dismissal due to a reduced business need for the role - it’s not about performance or conduct. If performance or conduct is the issue, use the appropriate capability or disciplinary process; that’s not redundancy and different notice rules may apply. If you’re weighing options between severance-type outcomes and redundancy, this comparison of severance vs redundancy can help frame your approach.

Link Your Process Back To Contracts And Templates

It’s good practice to standardise your letters and calculations. Making sure your Employment Contract contains well-drafted notice, PILON and garden leave clauses will give you flexibility. Team-wide policies in a Staff Handbook also guide fair and consistent handling.

If you need support with the strategic and technical aspects, our team provides dedicated Redundancy Advice for UK employers, including planning, consultation documentation, compliant notices and payment breakdowns.

Common Pitfalls To Avoid

• Issuing notice before consultation has properly concluded.
• Assuming contractual notice can undercut statutory minimums.
• Underpaying PILON by ignoring benefits/allowances that would have applied during notice.
• Forgetting holiday accrual during notice or mishandling deductions for overused leave.
• Overlooking collective consultation and HR1 filing when 20+ redundancies are proposed at one establishment.
• Mixing up redundancy with misconduct processes like summary dismissal.

What To Include In Your Final Letter

Your redundancy confirmation and notice letter should be clear and comprehensive. As a guide, include:

• Confirmation that the role is redundant and the reason for redundancy.
• The notice period and termination date (or PILON amount and immediate termination date).
• Whether notice will be worked, garden leave will apply, or PILON will be paid.
• A breakdown of payments: notice pay, statutory/contractual redundancy pay, holiday pay, outstanding expenses/commission, and any lawful deductions.
• Company property return and confidentiality reminders.
• Right of appeal and contact point for questions.

How Notice Interacts With Other Rights

Depending on your business and the employee’s situation, consider these interactions:

• Non-compete and non-solicit covenants: If you use PILON without a clause, consider a settlement agreement to preserve restrictions.
• Commission and bonus plans: Clarify pro-rating and entitlement during notice in the contract to avoid disputes.
• Fixed-term contracts: Redundancy can still apply; check early termination clauses and this overview of fixed-term contracts to avoid unintended liabilities.
• Final payroll timing: Pay correctly and on time - late or incorrect payments can escalate friction and risk.

Key Takeaways

• Redundancy notice periods are mandatory: give the longer of statutory minimum or contractual notice, and confirm it in a clear written letter.
• Notice starts when you communicate unequivocal written notice after fair consultation - keep records of when it’s given and received.
• Employees are entitled to pay and benefits during notice. You can use garden leave or PILON if your contract allows (or by agreement), but calculate payments carefully.
• Redundancy pay is separate from notice pay. Eligible employees with 2+ years’ service may receive statutory redundancy pay in addition to notice.
• “No notice” isn’t usually an option for redundancy. If you need to end employment immediately, use a contractual PILON and pay the correct amount.
• For 20+ redundancies at one establishment, collective consultation and HR1 filing are required - non-compliance risks protective awards.
• Protect your business with robust contracts and policies, a fair paper trail, and a practical employer checklist for ending an employment contract. If in doubt, get tailored Redundancy Advice early.

If you’d like help planning redundancies, drafting compliant notices or sense-checking your calculations, you can reach us on 08081347754 or team@sprintlaw.co.uk for a free, no-obligations chat.