Less than two years’ service
Losing a job is never easy, but you don’t have to navigate it alone. This is a practical guide on where you stand and what to expect. Remember it's the role that's redundant, not you.
What is redundancy?
Redundancy happens when your employer decides that your role is no longer needed. This could be due to changes in the business, such as cost-cutting or restructuring.
What are the possible reasons for redundancy?
Your role must be selected for redundancy based on a genuine business need. Common reasons include financial difficulties, a drop in revenue, or structural changes that make certain roles unnecessary.
What are my rights if I have less than 2 years’ service?
If you’ve been with your employer for less than two years, you have fewer legal protections. Employers don’t need to prove they selected you fairly, and they aren’t required to follow a formal consultation process.
However, good employers will still aim to be fair. Even with limited rights, you’re protected from unfair redundancy in certain cases.
Automatically unfair reasons for redundancy
Your redundancy cannot be based on:
- Pregnancy or maternity leave
- Trade union membership or activity
- Being a part-time or fixed-term worker
- Whistleblowing (reporting illegal or unethical practices)
- Raising health and safety concerns
- Acting as an employee representative
- Requesting statutory rights, such as minimum wage
You can still be made redundant if one of these applies to you, but it cannot be the reason for your redundancy.
Discrimination protections
The Equality Act 2010 protects you from being made redundant because of:
- Age
- Disability
- Gender reassignment
- Marriage or civil partnership
- Pregnancy or maternity leave
- Race, ethnicity, or nationality
- Religion or belief
- Sex
- Sexual orientation
For example, if you’re selected for redundancy because you need to leave work early to care for a disabled relative, that could be considered discrimination.
Victimisation protection
You can’t be made redundant because you previously raised discrimination concerns. If redundancy is necessary, your employer must prove it’s for business reasons—not because you spoke up.
Redundancy While Pregnant or on Maternity Leave
If you have less than two years’ service and you’re pregnant or on maternity leave, your employer can make you redundant without following a full redundancy consultation, but it would be best practice to consult with you about potential redundancies, explaining:
- Why redundancies are happening and which roles are affected.
- Possible alternatives, like reduced hours or voluntary redundancy.
- How they are deciding who will be made redundant (selection criteria).
Pregnancy or maternity leave doesn’t exempt you from redundancy, but if you believe these factors influenced your selection, you may have grounds for an unfair dismissal or discrimination claim.
Priority for suitable alternative roles
If a suitable alternative role exists, your employer must offer it to you before others at risk of redundancy. You don’t need to apply—it must be offered automatically. The role must:
- Match your experience and skillset.
- Keep similar terms, conditions, and status.
- Be in a reasonable location.
This protection applies from when you notify your employer of your pregnancy and continues for 18 months after the expected or actual birth date (or adoption placement). If you refuse a suitable role, you lose your right to redundancy pay.
Maternity pay and redundancy
If you qualify for Statutory Maternity Pay (SMP), you will still receive it, even if you’re made redundant.
You qualify if you:
- Earn at least £125 a week.
- Have worked for your employer for at least 26 weeks up to the 15th week before your due date.
- Have provided proof of pregnancy and given at least 28 days’ notice.
If you’re made redundant before your qualifying week, you may need to claim Maternity Allowance instead.
If you’re on maternity leave when redundancy happens, you’ll continue receiving SMP for the full 39 weeks. If you were receiving enhanced maternity pay, it usually stops when you’re made redundant.
These maternity payments would be in addition to your notice pay and untaken accrued holiday.
What’s the consultation process?
Consultation gives you and your employer a chance to discuss potential redundancy and explore alternatives. Your employer will explain why redundancies are being made and may look for ways to avoid letting people go, such as offering alternative roles.
Consultations can involve direct meetings with employees, employee representatives, or trade unions. You remain on payroll and retain your benefits throughout the consultation process.
How long does the consultation period last?
The length of the consultation depends on how many employees are at risk:
- Fewer than 20 employees – No legal minimum, but typically lasts 1–2 weeks.
- 20 to 99 employees – Minimum of 30 days.
- 100+ employees – Minimum of 45 days.
Employee representatives
If 20 or more employees face redundancy, representatives may be appointed to speak on behalf of the group. This is called collective consultation. Individual consultations may also take place alongside collective discussions.
Guidance on consultation
Consultation doesn’t have to end in agreement, but it should be a genuine discussion.
Helpful tips:
- Ask questions and request clarity where needed.
- Take your time—don’t feel pressured into making a quick decision.
- Make notes of key points.
- You may be allowed to bring a trade union rep or colleague for support. Their role is to take notes and ensure discussions stay on track, but they can’t answer on your behalf.
Topics you might want to cover:
- Are there alternatives to redundancy?
- Have other roles been considered?
- Will you work during your notice period?
- Can you take time off to look for a new job?
- What will your redundancy package and reference look like?
If redundancy goes ahead, your employer must confirm it in writing.
Suitable Alternative Roles
If you’re pregnant, on maternity, shared parental, or adoption leave, and your employer finds a suitable alternative role, you have priority over others at risk. The new role must:
- Be appropriate for your skills and experience.
- Offer similar terms, conditions, and location as your previous job.
This protection applies from the moment you notify your employer of your pregnancy and lasts up to 18 months after your child’s birth or placement.
If you reject a suitable role, you may lose your redundancy pay.
What will I be paid?
If you have less than two years’ service, your final pay includes:
- Wages for any days worked, including during consultation.
- Payment for any required notice period.
- Accrued but unused holiday pay.
You are not entitled to statutory redundancy pay.
Notice period payment options:
- Pay in Lieu of Notice (PILON) – A lump sum paid at the end of consultation. You won’t stay on payroll or receive company benefits afterward. Check your contract to see if PILON applies.
- Working your notice – You continue working and remain on payroll with full benefits. You can ask about leaving early with PILON for the remaining period.
- Garden leave – You don’t work but stay on payroll with full benefits. This allows your employer to keep you away from clients while still being available if needed. Starting a new job during garden leave may affect your pay.
