Redundancy Guide: Less than two years’ service

1. What is redundancy?

Redundancy happens when your employer decides that your role is no longer needed

2. What are the possible reasons for redundancy?

Your role must be selected for redundancy based on a genuine business need. Common reasons include:

• Your role or service is no longer needed
• Your employer needs to cut costs
• The business is closing or relocating
• The workforce is being reduced

Redundancy is always a last resort, used when other options (like reassigning roles or reducing costs elsewhere) aren’t enough.

3. 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, it is good practice for employers to conduct a fair consultation process. 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
You’re protected under the Equality Act 2010, which means redundancy decisions cannot be based on any of these nine protected characteristics:

1. Age
2. Disability
3. Gender reassignment
4. Marriage or civil partnership
5. Pregnancy or maternity leave
6. Race, ethnicity, or country of birth
7. Religion or belief
8. Sex
9. Sexual orientation

For example, if your employer selects you for redundancy because you have a flexible working agreement due to a disability, this could be considered discrimination. While having a protected characteristic doesn’t make redundancy impossible, it cannot be the reason for it.

Victimisation protection
If you’ve previously raised concerns about discrimination, such as reporting sexual harassment, your employer cannot select you for redundancy because of that. If redundancy is necessary, your employer must prove it’s for business reasons – not because you spoke up.

4. What’s the consultation process?

The consultation is a chance for you and your employer to talk through what’s happening. They’ll explain the reasons for redundancy and look at alternatives – like offering other roles. If redundancy can’t be avoided, you’ll be given notice at the end of the process.

Consultations can happen one-on-one, with a trade union representative, or with an employee representative (if more than 20 people are affected). You remain on payroll and retain your benefits throughout the consultation process.

What to expect from the first consultation meeting?

This first meeting is about sharing information and giving you a chance to ask questions. It isn’t about making final decisions.

You can expect to cover:

• Why redundancies are being considered
• Whether alternatives have been explored
• Why your role is at risk
• How you were selected (if others are in the same role)
• Any alternative roles available
• What happens next

Things to keep in mind:

• You can ask any questions at any point.
• You don’t have to make decisions on the spot. If you need more time, ask for it.
• Taking notes can help you remember details.
• It is best practice for employers to allow a trade union representative or a colleague to accompany you. Their role is to take notes, support you and they can speak on your behalf if that’s helpful. They can’t answer questions on your behalf.

Think of this first meeting as a fact-finding conversation. It’s a way to understand what is happening and explore the options.  The aim is for there to be a genuine, two-way conversation and not to reach a final decision.

How long does the consultation process last?

• Fewer than 20 redundancies: No legal minimum, but usually 1–2 weeks
• 20–99 redundancies: At least 30 days
• 100+ redundancies: At least 45 days

During this time, you stay on the payroll and keep your usual benefits.

What’s the role of employee representatives?

If 20 or more people are at risk, your employer may appoint employee representatives.

They will:

• Act as a collective voice for employees
• Raise questions and share concerns on behalf of the group
• Help ensure everyone’s views are heard

This process is called collective consultation and it should include everyone affected, no matter how long you’ve worked for the organisation or whether you’re on a permanent or fixed-term contract.

Alongside it, you’ll also have your own one-to-one consultation. These individual meetings often follow the group discussions, but they can also happen at the same time.

5. How are redundancies decided?

If you have less than 2 years’ service and your role is at risk but others in the same role are staying, It Is best practice for your employer to use fair and objective criteria to decide who goes.

They should explain:

• Who is in the selection pool (others with the same or similar role)
• What criteria are being used

Common criteria include:

• Skills, qualifications, and ability
• Work performance
• Attendance (excluding disability-related absence or parental leave)

Criteria can be weighted differently, but it is best practice for the process to be fair, transparent, and free from discrimination.

Your employer should share your own score with you, but not other employees’ scores. If you feel something about the process isn’t right, you can challenge it but your rights will be limited from a fairness perspective.

6. What will I be paid if I’m made redundant?

If you have less than two years’ service, your final pay includes:

• Outstanding wages up to and including  the consultation.
• Payment for any required notice period.
• Accrued but unused holiday pay.

You are not entitled to statutory redundancy pay.

Notice period options:

• Pay in Lieu of Notice (PILON): A lump sum instead of working your notice (check your contract if there is a clause about this).
• Work your notice: Continue working and remain on payroll.
• Garden leave: Stay on payroll but don’t work, often for business reasons.

7. Redundancy While Pregnant or on Maternity Leave, Adoption Leave or Shared Parental Leave (SPL)

If you have less than two years’ service and you’re pregnant, on maternity leave, adoption leave or SPL your employer can make you redundant without following a full redundancy consultation. However, it would be best practice to consult with you about potential redundancies, explaining:

• The reasons for the proposed redundancy and which roles are affected
• Possible alternatives, such as voluntary redundancy or reduced hours
• The selection criteria used, and how any scoring was carried out (if you’re in a “pool” of employees at risk)

Pregnancy or one of the family leaves outlined doesn’t exempt you from redundancy, but if you believe these factors influenced your selection, you may have grounds for an automatic unfair dismissal or discrimination claim.

Priority for suitable alternative roles

If you’re pregnant, on maternity leave, adoption leave, or shared parental leave and your employer identifies a suitable alternative role for you, then you have the right to be offered it before other employees at risk. You don’t need to apply.

The role must be:

• Appropriate for you, based on your skills and experience.
• No worse than your previous role in terms of pay, location, conditions, and status

This protection applies as follows:

• From when you notify your employer of your pregnancy and continues for 18 months after the expected week of birth or actual birth date. This also applies to stillbirths after the 24^th week of pregnancy or neonatal deaths at any stage of pregnancy.
• Miscarriages before the end of the 24^th week of pregnancy are protected from when you notify your employer of your pregnancy, up to 2 weeks after the miscarriage.
• From the date adoption leave starts and for 18 months after the adoption placement or, if adopting from overseas, after your child arrives in the UK.
• The protection begins on the first day of SPL if you have not taken maternity or adoption leave. In this instance, if you take six or more consecutive weeks of SPL, the protection continues for 18 months after the expected week of birth, actual birth date or adoption placement (or after your child arrives in the UK); if you take less than six weeks of SPL, the protection will end on the date the leave ends.

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 on average at least £125 a week.
• Have worked for your employer for at least 26 weeks up to the end of the 15th week before your expected week of birth.
• Have provided proof of pregnancy by the 15^th week before your due date and given at least 28 days’ notice of when you want your pay to start, along with submitting your MATB1 form

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.

Get free, confidential help via our advice line:

If you’re struggling with redundancy or change, our friendly Advice Line team are just a phone call away.

They’ll be your sounding board, your cheerleader and someone to talk through your issues with. Whatever your role or level, our experts will give you free, confidential guidance and support.

Can’t find your way forward? Let’s chat. Call us on 0800 707 6607 from 9am – 5.30pm, Monday to Friday or email us at support@nabs.org.uk.

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