How to Handle Compulsory Redundancy (UK 2026)

Why this matters

Compulsory redundancy is more common than voluntary in difficult market conditions. Many candidates assume they have less leverage than they actually do — the company still wants you to leave smoothly, which creates negotiation room. Procedural failures by the employer also create grounds for unfair dismissal claims, which often resolve via enhanced settlement.

Step-by-step

1. 1 Confirm the consultation process is being followed — minimum 30 days for 20-99 redundancies, 45 days for 100+
2. 2 Check the selection criteria are objective and consistently applied
3. 3 Ask about alternative roles within the company
4. 4 Document everything — meetings, communications, criteria provided
5. 5 Negotiate the package — most compulsory redundancies have ex-gratia headroom
6. 6 Take legal advice on the settlement agreement if offered
7. 7 Don't sign anything in consultation meetings

Common mistakes

• ✗Assuming compulsory means non-negotiable — most aren't
• ✗Not checking whether selection criteria were applied consistently — procedural failures are common
• ✗Skipping legal advice on settlement agreements (employer usually pays)
• ✗Not asking about alternative roles within the company
• ✗Accepting the first offer immediately — most have 1-2 weeks of negotiation window