Facing redundancy can be overwhelming. On top of the emotions, you’re suddenly dealing with a lot of unfamiliar words and legal terms. To help cut through the jargon, I’ve put together a quick glossary in plain English. Whether you’re at the start of the process or nearing the end, this guide should give you clarity and confidence.
Key Redundancy Terms
Redundancy
When your job role is no longer needed. It’s about the role, not your performance.
Consultation
Meetings with your employer where you can ask questions and discuss options before final decisions are made.
Notice Period
The time you’ll continue working (or being paid for) after being told you’re redundant.
Redundancy Pay
Money you may receive if you’ve worked for your employer for at least two years. This could be the legal minimum or more, depending on your contract.
Selection Criteria
The fair reasons an employer uses to decide who is made redundant—such as skills, experience, or attendance.
Alternative Job
Another role your employer may offer to avoid redundancy. It should be suitable for your skills and circumstances.
Pay in Lieu of Notice (PILON)
A lump sum paid instead of asking you to work your notice.
Settlement Agreement
A legal document where you accept redundancy terms (sometimes including extra pay) and agree not to bring legal claims against your employer.
Other Terms You Might Hear
- Voluntary Redundancy – When you choose to be made redundant, often with enhanced pay.
- Compulsory Redundancy – When the employer selects who will be made redundant.
- Collective Redundancy – When 20 or more staff are made redundant within 90 days at the same workplace.
- Continuous Service – How long you’ve worked without a break, used to calculate redundancy pay.
- Statutory Notice – The minimum notice period employers must give you by law.
- Garden Leave – You stay employed and paid but don’t work during your notice.
- TUPE – A law that protects jobs if your company is taken over by another business.
- Appeal – Your right to challenge a redundancy decision if you feel it was unfair.
- Outplacement Support – Help from your employer with CVs, training, or finding new work.
- Employment Tribunal – A legal body where you can challenge unfair redundancy.
Final Thoughts
Understanding the language around redundancy won’t take away the stress, but it can give you clarity and control. If you’re facing redundancy, remember you don’t have to go through it alone—getting advice can make a big difference.
