Can You Be Made Redundant If Your Job Still Exists?

Redundancy is a form of dismissal used when an employer no longer needs someone to do a particular job. But what happens when your position still exists, yet you're told you're being made redundant? While redundancy is a legitimate reason for dismissal, it must be genuine and fair under UK employment law.

This guide explains whether you can legally be made redundant if your job still exists, what your rights are, how redundancy pay works, and what to do if you think the process is unfair.

Can My Employer Make Me Redundant When My Role Still Exists?

The short answer is: not lawfully, unless there’s a genuine reason. A redundancy must relate to:

• The employer closing the business or a workplace

• Fewer employees being needed to do certain work

• Work of a particular kind no longer being required in the same way

If your job still exists and someone else is doing it, or if your employer is hiring into the same role, this may indicate the redundancy is not genuine. In that case, you could have grounds for unfair dismissal.

What Are the Main Reasons for Being Made Redundant?

Common reasons for redundancy include:

• Business closure

• Restructuring or merging teams

• Automation or changes in technology

• Declining business performance

• Outsourcing or relocating the role

Your employer must demonstrate a business case for redundancy and carry out a fair consultation process.

What Are My Rights If I’ve Been Made Redundant?

If you're made redundant, you have the right to:

• A clear explanation of the reason for redundancy

• A fair and transparent selection process

• A consultation period (especially if 20 or more staff are affected)

• Time off to look for a new job or attend interviews

• A written statement of your redundancy payment (if eligible)

If you believe the redundancy is a cover for another issue – such as discrimination or poor performance – you may be able to challenge it through a grievance or employment tribunal.

Do I Have an Entitlement to Redundancy Pay?

You’re entitled to statutory redundancy pay if you’ve been with your employer for at least two years. The amount depends on your age, length of service, and weekly pay, capped at £643 per week (2024–25).

Employers may offer enhanced redundancy packages, but they’re not required to.

If your employer refuses to pay or underpays, you can file a claim at an employment tribunal.

Can My Employer Offer Me a Different Job Within the Company?

Yes. Your employer must offer you any suitable alternative employment available in the organisation. If they don't offer an available role you're capable of doing, the dismissal may not be fair.

You’re entitled to a trial period in the new role (usually four weeks) to assess suitability without losing your redundancy pay entitlement.

If you refuse a reasonable alternative without a valid reason, you could lose your right to redundancy pay.

Will I Have to Work a Notice Period If I’m Made Redundant?

Yes. Your employer must give you the appropriate notice period, either as stated in your contract or as per the statutory minimum (one week’s notice for each full year worked, up to 12 weeks).

They may offer pay in lieu of notice instead, meaning you’ll leave immediately but still be paid for the notice period.

How Quickly Can I Start at a New Company After Being Made Redundant?

You can start a new job straight away, even during your notice period, unless you’re receiving pay in lieu and have agreed not to work elsewhere during that time.

There are no restrictions on taking a new job following redundancy. However, make sure you’ve properly ended your previous employment to avoid any contractual disputes.

What Information Am I Entitled to From My Employer When Being Made Redundant?

Your employer should provide:

• A written explanation of the redundancy

• The selection criteria used

• Confirmation of notice and final working day

• Details of any redundancy pay

• Your rights to appeal the decision

• Opportunities to apply for internal roles

Lack of transparency could support a claim for unfair dismissal.

Compulsory and Voluntary Redundancy

Compulsory redundancy is where your employer chooses who is leaving based on specific criteria.

Voluntary redundancy is where staff are invited to apply for redundancy, often with an incentive package. Employers are not obligated to accept all volunteers, especially if key roles would be left unfilled.

The same rights to consultation, notice and pay apply in both cases.

What If I’ve Not Been Given the Correct Redundancy Pay?

If you haven’t received what you’re owed, raise it first with your employer. If this doesn’t resolve it, you can:

• Use ACAS early conciliation

• Take the claim to an employment tribunal

• Seek advice from a solicitor or employment adviser

You must act quickly – claims must usually be brought within three months minus one day from the date your employment ended.

Do You Pay Tax on Redundancy Pay?

The first £30,000 of redundancy pay is tax-free. Anything above that is subject to income tax and potentially National Insurance, depending on how it’s structured (such as bonuses or pay in lieu of notice).

Your employer must provide a P45 or payslip showing tax deductions, and any overpaid tax can be reclaimed from HMRC.

How Much Redundancy Pay Am I Entitled To?

Statutory redundancy pay (2024–25) is calculated as:

• Half a week’s pay for each year under age 22

• One week’s pay for each year aged 22 to 40

• One and a half week’s pay for each year over 41

The maximum you can receive is capped at £19,290, but this doesn’t include notice pay, holiday pay or bonuses.

Final Thoughts

You can’t lawfully be made redundant if your job still exists and is being filled by someone else without a legitimate reason. Redundancy must be a genuine dismissal based on business needs, not a cover for performance or personal disputes.

If you believe your redundancy isn’t fair, you have rights – including to challenge the process, appeal the decision and potentially claim unfair dismissal. Always request written reasons, understand your notice and pay entitlements, and get advice if anything seems off.