Redundancy Protection UK: What Employers Must Know in 2025
It is crucial for employers to understand recent changes to redundancy law
It is crucial for employers to understand recent changes to redundancy law.
Since April 2025, many employers across the UK have been forced to consider redundancies as a result of rising costs linked to increases in the National Minimum Wage (NMW) and National Insurance. Sectors such as retail, hospitality, facilities management and care provision have been particularly affected, with women making up a significant proportion of the workforce in these industries.
Against this backdrop, it is crucial for employers to understand recent changes to redundancy law. On 6 April 2024, the Protection from Redundancy (Pregnancy and Family Leave) Act 2023 came into effect, extending redundancy protection for employees beyond maternity, adoption and shared parental leave. This employment law update means that employers now face wider obligations and a greater risk of claims if the correct processes are not followed.
What Has Changed in Redundancy Protection?
Under the new legislation, redundancy protection no longer applies only while an employee is on leave. Instead, it now covers longer periods both before and after maternity leave, adoption leave and shared parental leave. For pregnant employees, protection begins as soon as the employer is notified of the pregnancy and lasts until 18 months after the expected or actual date of birth. In the case of miscarriage, medical termination or stillbirth, in the event that the pregnancy ends before the 24th week of pregnancy, the protected window shall extend to the two weeks which directly follow. If the pregnancy ends after 24 weeks, the protected period will remain for the entire statutory leave period.
Adoptive parents are also covered. Their protection starts on the first day of adoption leave and continues until 18 months after the child is placed. Employees taking shared parental leave (SPL) are protected too, the protected period begins on the first day of Shared Parental Leave (SPL) for employees who take at least six consecutive weeks of leave and who have not already taken maternity or adoption leave. In these cases, protection lasts until 18 months after the child’s birth or placement. For employees taking less than six weeks of SPL, the existing protections continue to apply and will end when the SPL ends.
Why This Matters for Employers
For employers, these changes carry significant legal and practical implications. Redundancy protection gives affected employees the automatic right to be offered any suitable alternative roles before they can be made redundant. This applies even if another candidate is objectively more suitable for the position. Failure to comply may lead to claims of unfair dismissal and discrimination, which can be both costly and damaging to an organisation’s reputation.
It is therefore more important than ever for businesses to maintain accurate records of pregnancy notifications, due dates, adoption placements and periods of parental leave. These records will allow employers to calculate protected periods correctly and reduce the risk of making unlawful decisions. Employers must also ensure that all employees on maternity leave, adoption leave or shared parental leave are included in redundancy consultation processes. In some cases, employees on leave may choose to volunteer for redundancy, which can simplify workforce planning.
One area of ongoing uncertainty is how employers should handle situations where more than one employee with redundancy protection is at risk for the same role. The law currently provides no clear guidance on this point, making it essential for businesses to seek expert legal advice if such a scenario arises.
Employment Law Compliance and Next Steps
The extension of redundancy protection in the UK is a reminder that employers cannot take a one-size-fits-all approach to restructuring. By keeping clear records, adapting redundancy processes and seeking timely legal support, organisations can comply with the latest employment law requirements while reducing the risk of disputes.
If your business is planning redundancies in 2025 and you are unsure how these changes affect you, we strongly recommend obtaining professional advice on maternity and redundancy rights, adoption leave protection, and shared parental leave laws before taking action.
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