Two years feels like an arbitrary line, and honestly, it is a bit. But it's the law, and it catches a lot of people out.
If you've been in your job for less than 2 years, you don't qualify for statutory redundancy pay. That's the bad news. But it doesn't mean you have no rights and no leverage.
A lot of people in this situation assume they just have to accept whatever they're given. That's not true.
What you're still entitled to
Even without statutory redundancy pay, your employer still owes you:
Your notice period. You're entitled to at least one week's notice if you've been employed for a month or more (ERA 1996, s.86). If your contract gives you more than that, the contractual notice applies. Your employer either has to let you work your notice, put you on garden leave, or pay you in lieu.
Holiday pay. Any holiday you've built up but haven't taken must be paid out. This is a legal entitlement from day one.
Any contractual bonus or commission. If your contract includes a bonus and the conditions have been met, you're owed it regardless of your length of service.
Expenses and benefits. Anything owed to you under your contract, like outstanding expenses, company car payments, or other benefits.
Claims that don't need 2 years' service
The 2-year rule only applies to statutory redundancy pay and ordinary unfair dismissal. There are several important claims that have no minimum service requirement at all.
Discrimination. If you were selected for redundancy because of a protected characteristic (age, disability, pregnancy, race, sex, religion, sexual orientation, gender reassignment, or marriage/civil partnership), you can bring a discrimination claim from day one. Compensation is uncapped.
Pregnancy and maternity. Dismissal connected to pregnancy or maternity leave is automatically unfair with no service requirement (ERA 1996, s.99). It's also sex discrimination.
Whistleblowing. If you raised a concern about wrongdoing at work and were then selected for redundancy, that's automatically unfair dismissal with no service requirement and no compensation cap (ERA 1996, s.103A).
Asserting statutory rights. If you were dismissed for asking about your employment rights (like requesting a written statement of terms, or asking about working time rights), that's automatically unfair from day one.
Trade union activity. Dismissal for trade union membership or activity is automatically unfair with no qualifying period.
Wrongful dismissal. If your employer didn't give you proper notice, that's a breach of contract claim. No service requirement.
How to make the most of your position
Know what you're owed. Add up your notice pay, holiday pay, and any bonus or commission. Even without redundancy pay, this can be a meaningful amount.
Check for day-one claims. Go through the list above honestly. If any of them apply to your situation, you have much more leverage than you think.
Don't underestimate the settlement agreement. If your employer puts a settlement agreement in front of you, they're asking you to give up your right to bring claims. Even if you only have day-one claims, those claims have value. The agreement should reflect that. And remember, your employer has to pay for you to get legal advice (ERA 1996, s.203).
Check your contract for enhanced terms. Some contracts include redundancy or termination payments that don't depend on the 2-year statutory threshold. It's worth checking.
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.