Being told you're being made redundant is a shock. Even if you saw it coming, the reality hits differently. Your head is probably all over the place right now.

That's completely normal. But there are some things you need to do in the first week or so that will make a real difference to how this plays out for you. Not next month. Now.

Here's your checklist. Work through it at your own pace, but don't skip any.

1. Don't sign anything yet

This is the most important one. If your employer puts a settlement agreement or any other document in front of you, you do not have to sign it on the spot. You shouldn't.

ACAS guidance says you should have at least 10 calendar days to consider a settlement agreement. That's the minimum. Many employers give more.

If someone is pressuring you to sign quickly, that's a red flag, not a reason to rush. Take your time, read everything, and get advice first. More on that in step 10.

2. Check what you're actually owed

Before you can tell if an offer is fair, you need to know what you're entitled to as a starting point.

Use our redundancy pay calculator to work out your statutory redundancy pay. This is based on your age, length of service, and weekly pay (capped at £751 per week from April 2026). You need at least two years' continuous service to qualify.

On top of statutory redundancy pay, you're also owed:

  • Notice pay. At least one week per year of service, up to 12 weeks. Your contract might give you more.
  • Holiday pay. Any holiday you've built up but not taken.
  • Any outstanding wages, commission, or bonus payments.

Check our full guide to redundancy pay for the detailed breakdown.

3. Check your contract

Dig out your employment contract and any staff handbook. You're looking for three things.

Enhanced redundancy terms. Some contracts or company policies give you more than the statutory minimum. This might be a higher multiplier, an uncapped weekly pay figure, or extra weeks per year of service. If it's in your contract, your employer has to honour it. Read our guide to statutory vs enhanced redundancy pay for more on this.

Bonus clauses. Are you due a bonus? Does the wording say it's "discretionary" or is there a formula? If you've hit your targets, you may still be entitled to a bonus even if you're leaving.

Restrictive covenants. Non-compete clauses, non-solicitation clauses, gardening leave provisions. You need to know what's in there so you can negotiate to have them removed or reduced as part of your exit. These are often negotiable.

4. Request your redundancy calculation in writing

Ask your employer to put the full breakdown of your redundancy package in writing. Not just the total number. You want to see how they've calculated each part:

  • Statutory redundancy pay (showing the years and weekly pay figure used)
  • Notice pay
  • Holiday pay
  • Any enhanced payment
  • Pension contributions

If they won't put it in writing, that tells you something. A fair employer with nothing to hide will have no problem showing you the maths.

5. Check how the process was handled

This is where a lot of employers trip up, and it's where your leverage comes from if you need to negotiate a better deal.

Ask yourself:

  • Did they consult with you? Your employer should have had at least one individual consultation meeting with you before making the final decision. For 20 or more redundancies, there are collective consultation rules too. If they didn't consult at all, that's a serious problem. Read our guide to consultation failures.
  • Did they use fair selection criteria? If they chose you from a pool of people, the criteria should have been objective and measurable, not just "who the manager likes best." See our guide to unfair selection.
  • Did they offer you alternative roles? Your employer should have considered whether there were any other suitable jobs in the organisation they could offer you instead.
  • Was the redundancy genuine? If they've already advertised your replacement or someone else is doing your job under a different title, the redundancy might not be genuine at all.

Any of these failures could give you grounds for an unfair dismissal claim, or at least a much stronger negotiating position.

6. Understand your tax position

Not all of your redundancy package is taxed the same way.

The first £30,000 of your redundancy payment is completely tax-free. This covers your statutory redundancy pay and any extra ex-gratia (goodwill) payment, combined.

But notice pay and holiday pay are taxed as normal earnings. They don't count towards the £30,000 allowance. This is true even if your employer rolls everything into one lump sum. HMRC will still separate it out.

This matters because how the payments are structured affects how much you actually take home. Read our full guide to how redundancy pay is taxed so you know exactly where you stand.

7. Apply for benefits

You can apply for Universal Credit while you're still in your notice period. Don't wait until your last day. The first payment usually takes about five weeks, so applying early means less of a gap.

Here's how your redundancy pay affects Universal Credit:

  • Under £6,000 in savings: No effect on your UC at all.
  • £6,000 to £16,000 in savings: Your UC is reduced by £4.35 for every £250 you have above £6,000 (this is called "tariff income").
  • Over £16,000 in savings: You can't claim UC until your savings drop below this threshold.

Redundancy pay is treated as savings (capital), not income, for Universal Credit purposes. So it's not about how much you received. It's about how much you have in total savings, including your redundancy payment, when you make your claim.

You should also check if you're eligible for Council Tax Reduction, which is handled by your local council. It's a separate application and based on your income and circumstances.

The Universal Credit helpline is 0800 328 5644 (Monday to Friday, 8am to 6pm).

8. Contact your mortgage provider

If you have a mortgage, tell your lender early. This feels uncomfortable, but it's the smart move.

Most lenders offer payment holidays or reduced payment arrangements for people going through redundancy. But they can only help if you tell them. Falling behind without warning is much worse than calling proactively.

Ask about:

  • Payment holidays (usually up to three months)
  • Switching to interest-only payments temporarily
  • Extending your mortgage term to reduce monthly payments

9. Check your insurance policies

Go through any insurance you have. You might already be covered and not realise it.

Mortgage payment protection insurance (MPPI) will often cover your mortgage payments for up to 12 months after redundancy. Check the policy terms and make a claim as soon as possible because there's usually a waiting period.

Income protection insurance may also cover redundancy, depending on the policy.

Critical illness cover is separate but worth checking for any relevant provisions.

Important: Most policies exclude voluntary redundancy. If you volunteered, check the small print carefully before assuming you're covered.

10. Get legal advice if offered a settlement agreement

If your employer has given you a settlement agreement, you need independent legal advice before you can sign it. That's not optional. A settlement agreement is only legally valid if you've had advice from a qualified solicitor, a certified trade union adviser, or an advice centre worker (under the Employment Rights Act 1996, s.203).

Your employer must pay for this advice. The typical contribution is £250 to £500 plus VAT. This should be enough to cover a solicitor reviewing the agreement and advising you on what you're signing away.

Don't just treat this as a box-ticking exercise. A good solicitor will tell you whether the offer is fair, what you might be able to negotiate, and what rights you're giving up. Read our guide on whether you need a solicitor for a settlement agreement and our guide to settlement agreement amounts to understand what a fair deal looks like.

11. Update your CV and LinkedIn

Do this while everything is fresh. Write down your achievements, projects, responsibilities, and any numbers that show your impact (revenue generated, team size, budgets managed). You'll forget half of this in a month.

Update your LinkedIn headline and set yourself to "Open to Work" if you're comfortable doing so. Let your network know. Many jobs are filled through connections, not job boards.

12. Check your pension

This is easy to overlook but can make a real difference.

Find out what happens to your employer's pension contributions. They'll stop when your employment ends, but check whether there's a vesting period or any contributions still due.

Consider sheltering some of your redundancy payout in a pension. If your total payment is under £30,000, it's already tax-free. But if it's above that, paying the excess into a pension could save you tax. You're allowed to contribute up to your annual allowance (currently £60,000, including employer contributions). Talk to a financial adviser before doing this because the rules can be complicated.

Also check whether you have a defined benefit (final salary) pension. Redundancy can affect the value of these, and it's worth getting specific advice.

13. Keep records of everything

From this point on, save every email, letter, and note from every meeting. If you had verbal conversations about your redundancy, write down what was said and when while you still remember.

These records matter if you need to negotiate or make a tribunal claim later. You'd be surprised how often the outcome of a case depends on who kept better notes.

Key things to save:

  • The letter or email confirming your redundancy
  • Any consultation meeting notes
  • The selection criteria used (if they shared them)
  • Your redundancy calculation
  • Any settlement agreement drafts
  • Your contract of employment and staff handbook
  • Emails showing promises made by your employer

14. Know your deadlines

There's a strict time limit on making unfair dismissal claims.

You currently have three months less one day from your effective date of termination to start a claim at the employment tribunal (under the Employment Rights Act 1996, s.111). That clock starts ticking from your last day of employment, not from when you were told about the redundancy.

From October 2026, this deadline extends to six months under the Employment Rights Act 2025.

ACAS early conciliation is mandatory before you can make a tribunal claim. You must contact ACAS first, and the conciliation period pauses the clock. Don't leave it until the last minute though. Start the process early if you think there might be a claim.

You can contact ACAS on 0300 123 1100 or start early conciliation online at acas.org.uk.

Quick summary

Step What to do When
1 Don't sign anything Immediately
2 Check what you're owed Day 1-2
3 Review your contract Day 1-2
4 Request written calculation Day 1-2
5 Assess the process Day 2-3
6 Understand your tax position Day 2-3
7 Apply for benefits Day 1-3
8 Contact mortgage provider Day 3-5
9 Check insurance policies Day 3-5
10 Get legal advice Within 10 days
11 Update CV and LinkedIn Day 5-7
12 Check your pension Day 5-7
13 Keep records Ongoing
14 Know your deadlines Immediately

You're going to be fine

Redundancy feels like the end of something. And it is. But it's also the start of something. Most people who go through this look back and say it worked out for the better.

The important thing right now is to protect your rights, get what you're owed, and set yourself up for what comes next. This checklist gives you the structure to do that.

If you want to know exactly what you're entitled to, use our free redundancy pay calculator to get your numbers.

This article is general guidance about UK redundancy rights. It's not legal advice and shouldn't be treated as a substitute for advice from a qualified employment solicitor.

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