Can You Be Made Redundant While on Sick Leave?

Being off work due to illness brings uncertainty, and if you hear your employer is planning redundancies, it’s natural to worry about your position. Many ask: can you legally be made redundant while on sick leave? The answer is yes, but the redundancy must be genuine, non-discriminatory and fairly handled.

This guide explains how redundancy works during sick leave, what rights employees have, how employers should handle the process, and how redundancy pay is affected.

Can Employees Be Made Redundant Whilst on Sick Leave?

Yes, but only if the redundancy is not related to the employee’s illness or absence. Redundancy must be due to:

• Business closure

• Workplace relocation

• Reduced need for a particular role

• Organisational restructure

If sickness is used as a pretext for redundancy, this could be grounds for an unfair dismissal or discrimination claim, particularly if the illness is linked to a disability.

Should Employers Consult with Staff While They’re Off Sick?

Yes. If you’re an employer considering redundancy, you have a duty to consult with all affected staff – even those on sick leave. The process must be fair and inclusive.

Consultation can be carried out through:

• Phone calls

• Video calls

• Written communication

• Meetings if the employee is well enough to attend

Employees on sick leave must be given the same information, support and opportunity to comment as other staff.

Are Employees on Sick Leave Entitled to Statutory Redundancy Pay?

Yes. If an employee meets the criteria – at least two years’ continuous service – they are entitled to statutory redundancy pay, even if they’re currently off sick.

Being on sick leave does not affect your legal entitlement to:

• Redundancy pay

• Notice pay

• Accrued holiday pay

• Final payslips and P45s

Statutory redundancy pay is based on age, length of service, and weekly pay (capped at £643 per week as of 2024–25).

Does Unused Sick Leave Affect Redundancy Pay?

No. There is no payment for unused sick leave in the UK. Sick pay is a statutory or contractual benefit, not something that accumulates or gets paid out when employment ends.

However, if you're receiving Statutory Sick Pay (SSP) or company sick pay at the time of redundancy, your notice pay may be affected. Your employer must pay either your normal pay or statutory minimum notice pay, whichever is greater.

Can Employers Offer Voluntary Redundancy to Staff on Sick Leave?

Yes. You can offer voluntary redundancy to employees on sick leave. The offer must be genuine, non-discriminatory, and include the same terms as offered to other staff.

The employee has the right to:

• Accept or reject the offer

• Ask questions about redundancy pay

• Seek legal or union advice

Voluntary redundancy is often used to avoid compulsory dismissals and may include enhanced pay packages.

How Can Employers Ensure Redundancy on Sick Leave Is Fair?

To avoid legal challenges, employers must:

• Show that redundancy is based on a genuine business reason

• Apply objective, non-discriminatory selection criteria

• Include all staff fairly, including those on sick leave

• Offer any suitable alternative roles available

• Document the process carefully and maintain transparency

Discrimination linked to disability or pregnancy during redundancy is unlawful and can lead to tribunal claims.

What If the Employee Is on Long-Term Sick Leave?

Even during long-term sickness, redundancy is still possible if the role genuinely no longer exists or the employer needs to reduce headcount.

However, employers should:

• Consider reasonable adjustments if the employee is disabled under the Equality Act

• Explore alternative roles

• Be sensitive to the employee’s health when arranging consultation

Long-term sick employees should not be singled out for redundancy just because of their absence.

Final Thoughts

You can be made redundant while on sick leave, but your employer must follow a fair and lawful process. Redundancy must not be connected to your illness, and you must be properly consulted and considered for suitable alternative roles.

If you suspect you’ve been unfairly targeted for redundancy because of your health, or your employer failed to consult you, you may have grounds for a claim. Always keep records and seek advice if you're unsure – from ACAS, your union, or a solicitor.

Your rights don’t stop just because you’re off sick – and fair treatment still applies.