Written by EmployerCalculator Editorial · Reviewed against official UK sources · Last updated: April 2025
A practical employer guide to redundancy process, statutory pay, notice and risk control.
Redundancy planning should start with role rationale, selection methodology and a consultation timetable. Documentation quality is as important as arithmetic.
Cost modelling should include statutory redundancy pay, notice pay, accrued holiday, pension interactions and professional support where needed.
A rushed process can create legal exposure that exceeds the direct payroll savings sought by the exercise.
The baseline cost usually includes statutory redundancy entitlement for eligible employees, plus notice obligations under statute or contract.
Employers may also need to account for payment in lieu of notice, untaken holiday, and any agreed enhanced terms.
Treat these as scenario ranges during planning. Actual outcomes depend on service length, contracts, consultation outcomes and settlement choices.
Use a checklist covering consultation records, role pooling decisions, scoring evidence and communications history.
Ensure managers are briefed before meetings. Inconsistent messaging can weaken process integrity.
Where uncertainty is high, take legal advice early. Calculator outputs are useful for planning but are not substitutes for legal review.
Put the figures from this guide into practice with the live calculator tools below.
EmployerCalculator Editorial. Content reviewed against HMRC guidance. Estimates only — not financial or legal advice. See our methodology and sources.
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