Made Redundant? What to Do in the First Week (UK)

If you've just been made redundant, here's something worth knowing straight away: under UK law, redundancy means the job has gone. The decision is about the role, and it says nothing about how good you were at it.

That doesn't make it any less of a shock. But the first week matters, because there are entitlements to check, paperwork to read carefully, and a few early steps that make the job search much easier.

This guide covers the basics for employees in the UK. Rules and figures change, so check the current details on GOV.UK or with Acas, and get proper advice for anything complicated.

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1. Understand what you're entitled to

Before you sign or agree to anything, work out what you should be getting. Several different payments are involved, and they're treated differently.

Statutory redundancy pay

If you're an employee with at least two years' continuous service, you're usually entitled to statutory redundancy pay. It's based on your age, length of service and weekly pay:

• Half a week's pay for each full year worked while under 22
• One week's pay for each full year worked between 22 and 40
• One and a half weeks' pay for each full year worked aged 41 or over

Service is capped at 20 years, and weekly pay is capped at a limit that's updated each April. The GOV.UK redundancy pay calculator will work out your figure.

As a simple example, someone aged 30 who has worked for the same employer since they were 24 has six full years in the 22 to 40 band, so they'd get six weeks' pay, subject to the weekly cap. Your contract may give you more than the statutory amount, so check it.

Notice pay

You're entitled to your notice period, either worked or paid. The statutory minimum is one week per full year of service (once you've worked there for a month), up to 12 weeks, unless your contract gives more.

Holiday pay

Any holiday you've built up but not taken should be paid in your final pay, unless you're asked to take it during your notice.

Time off to look for work

If you have two years' service, you're entitled to reasonable paid time off during your notice period to look for work or arrange training. Use it.

Tax

The first £30,000 of redundancy pay is usually tax-free. Notice pay and holiday pay are taxed as normal earnings, so don't budget as if the whole lump sum lands untouched.

Payment	Who usually gets it	Tax
Statutory redundancy pay	Employees with 2+ years' continuous service	First £30,000 usually tax-free
Notice pay	Employees, whether notice is worked or paid	Taxed as earnings
Holiday pay	Anyone with untaken holiday	Taxed as earnings
Enhanced (contractual) redundancy pay	Only if your contract or policy offers it	Check with your employer

Key Takeaway: Check your figures against the GOV.UK calculator and your contract before you accept anything. Ask for a written breakdown if one hasn't been offered.

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2. Check the process and paperwork

A fair redundancy follows a process. You're allowed to ask questions about it, and doing so politely won't count against you.

• Consultation: your employer should consult you before making the decision final. If they plan to make 20 or more people redundant at one establishment within 90 days, formal collective consultation rules apply.
• Selection: if you were chosen from a group, the selection criteria should be fair and objective. You can ask how you were scored.
• Suitable alternative employment: ask whether there are other roles you could move into. If you're offered one, you're normally entitled to a four-week trial period, and turning down a suitable role without good reason could affect your redundancy pay.
• Settlement agreements: if you're offered one, you must get independent legal advice before signing for it to be valid. Employers often contribute to the cost.

If something seems wrong, Acas offers free, impartial advice. Time limits for employment tribunal claims are short, usually three months less one day, and you normally need to contact Acas for early conciliation first. So act quickly if you think you've been treated unfairly.

Key Takeaway: Never sign a settlement agreement in a hurry. Take the independent advice, read every clause, and check the time limits if you think something is off.

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3. Sort the practical things

This is the dull part, and it's the part that buys you breathing space. Get it done in the first few days.

• Work out your monthly outgoings and how long your money will last
• Check whether you're eligible for benefits, such as New Style Jobseeker's Allowance or Universal Credit. Savings, including redundancy pay, can affect some benefits, so check GOV.UK
• Check what happens to your pension, private health cover and any workplace benefits
• Download anything personal from work devices before your access ends, but only your own things
• Ask your manager for a reference, or at least agree what a reference will say

One contrarian point: don't rush to spend the lump sum on "fresh start" plans. Treat it as runway until you know how long the search will take.

Key Takeaway: A clear budget turns a scary lump sum into a number of months. Knowing that number makes every job decision calmer.

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4. Start the job search the right way

Update your CV while it's fresh

Write down your achievements from your last role now, with numbers, while you remember the details. Those are the lines that will get you interviews.

Before: "Responsible for supplier management."

After: "Managed 14 suppliers and renegotiated the two largest contracts, cutting annual costs by £40,000."

Use your own real figures, of course. If you can't remember a number, check old reports or emails before your access ends.

Decide how to describe the redundancy

Keep it short and factual. On your CV, the role simply ends. In interviews, one sentence is enough:

"The company restructured and my role was one of several made redundant."

Then move on to what you want next. Our guide to explaining redundancy on your CV has more examples.

Tell your network

Let former colleagues, managers and contacts know you're looking, and what kind of role you want. Many roles are filled through people who already know your work.

Pace yourself

It's tempting to apply for everything in the first week. A few well-targeted, tailored applications usually do better than dozens of rushed ones. Before each one, check your CV against the job description with CVPilot's free ATS checker, and use CVPilot's keyword extractor to spot the terms the advert cares about most.

Key Takeaway: Capture your achievements this week while the details are fresh. Your future CV depends on the notes you make now.

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5. Look after yourself

Redundancy can knock your confidence, even when you know it wasn't personal. Keep a routine, stay in touch with people, and talk to someone if it's weighing on you.

Many employers offer an employee assistance programme, and you can often still use it during your notice. Ask HR before your last day.

Key Takeaway: Treat the search like a part-time job with set hours, and give yourself real time off around it.

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First-week checklist

• Redundancy, notice and holiday pay checked against GOV.UK and your contract
• Settlement agreement reviewed by a solicitor, if offered
• Budget worked out
• Reference agreed
• CV updated with recent achievements
• Network told you're looking

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