A lawyer has explained your legal rights if your employer announces redundancies, as experts predict that 250,000 people will lose their jobs in the UK this year. The latest Item Club report forecasts that the UK economy will flatline in the second and third quarters, pushing the country 'to the brink of a technical recession in the middle of this year'.
Economic Outlook and Job Losses
The independent forecasting group stated that the UK’s jobless rate will peak at 5.8% by mid-2027, with nearly 250,000 additional people becoming unemployed. The International Monetary Fund (IMF) has indicated that the UK faces the most significant growth downgrade among G7 nations. This follows 2025 being the worst year for redundancy warnings since 2020, according to Freedom of Information data obtained from the Insolvency Service by the Liquidation Centre.
Legal Obligations for Employers
According to Beswicks Legal solicitors, employers have significant legal obligations when making redundancies. Failing to follow correct procedures can expose businesses to claims of unfair dismissal or discrimination. Laura Franklin, Employment Partner at Beswicks, emphasised: "One of the biggest misconceptions employees have is that redundancy means an employer can simply terminate employment immediately without following a formal process. In reality, employers still have clear legal responsibilities around consultation, notice periods, and fair selection procedures."
Consultation Requirements
Consultation is one of the most critical legal requirements during redundancies, especially when multiple roles are affected. Employees should have the opportunity to understand why redundancies are proposed, how decisions are made, and whether alternatives exist. Consultation must be meaningful, not merely a box-ticking exercise, and employers who fail to engage properly can face legal challenges.
Notice Periods and Redundancy Pay
Confusion around notice entitlements and redundancy pay is common during large-scale layoffs. Laura noted: "Employees are still entitled to receive their contractual or statutory notice period unless there are exceptional circumstances. We regularly see disputes around redundancy calculations, particularly involving commission, bonuses, or length of service." Selection criteria can also become a legal risk if employers fail to apply processes fairly and consistently. Redundancy should never be used to cover performance concerns, discrimination, or workplace disputes. Employers need objective and transparent criteria when selecting roles at risk, otherwise they may face allegations of unfair or discriminatory treatment.
Increased Employee Awareness
Increased media attention surrounding redundancies may make employees more aware of their rights, leading to greater scrutiny of employer conduct. Laura added: "With redundancies becoming more visible in the media, employees are increasingly informed about the protections available to them. Businesses that fail to follow fair procedures not only risk legal claims but can also face reputational damage internally and externally."
Advice for Employees Facing Redundancy
Laura advises employees to:
- Review their employment contract carefully to understand notice and redundancy entitlements.
- Ask for clarity on how redundancy decisions and selection criteria have been applied.
- Keep written records of meetings, communications, and consultation discussions.
- Seek legal advice early if they believe the process has been unfair or discriminatory.
- Get independent legal advice if they are offered a settlement agreement.
She concluded: "Redundancy situations are understandably stressful, but employees should remember that legal protections do exist. Understanding those rights early can help individuals make informed decisions and challenge unfair treatment where necessary."
