Making staff redundant

Last updated: 8 December 2017

Giving staff notice

You must give staff notice and agree a leaving date once you've finished the redundancy consultations.

Give staff at least the statutory notice period, based on how long they have worked.

Length of service Notice you must give
1 month to 2 years At least a week
2 years to 12 years A week's notice for every year employed
12 or more years 12 weeks

You can allow staff to leave earlier than the planned leaving date - eg without notice - by offering payment in lieu of notice.

Notice pay

You must give staff notice pay - based on their pay rate and notice period - or make a payment in lieu of notice.

Pay in lieu of notice

If you have included a payment in lieu of notice clause in the employment contract, you can end your staff's employment with no notice. This lets you make a payment to cover the notice period they'd normally have had to work.

These payments must have tax and National Insurance deducted.

When you make payments in lieu of notice, you still have to pay staff the basic pay they would have got during the notice period, including any pension, private healthcare insurance or other contributions.

Making staff redundant
Giving staff notice