Redundancy during maternity leave (UK 2026/27)

What the 2023 Act changed

Before October 2024, redundancy protection during maternity leave was limited to the leave period itself (typically 52 weeks). Once you returned to work, normal redundancy rules resumed.

The Protection from Redundancy (Pregnancy and Family Leave) Act 2023 extended the protected period to:

• From pregnancy notification, through pregnancy and maternity leave, to 18 months from the date of birth — for maternity-leave-takers
• From notification of adoption, through adoption leave, to 18 months from placement — for adoption-leave-takers
• For Shared Parental Leave: protection runs from the start of leave through 6 weeks after it ends

The practical impact: a parent returning from a 52-week maternity leave still has another ~12 months of redundancy-priority protection. This is the strongest single change to UK redundancy law in years.

The priority-employment rule (the strongest protection)

If your role is genuinely being eliminated in a redundancy situation, but a suitable alternative role exists somewhere in the business, your employer MUST:

1. Identify the alternative roles
2. Offer them to you (and other protected employees in your situation) ahead of competitive selection
3. Allow you to accept the offer without going through ordinary interview/assessment processes

What constitutes a "suitable alternative":

• Compatible work, capacity and place
• Pay, hours and status not substantially less favourable
• You're capable (or can be trained for) the role

If multiple protected employees compete for one suitable alternative, the employer can use objective criteria to choose between them — but the role can't go to a non-protected employee while a protected one is willing and able.

The statutory pay maths

Standard formula applies, including service accrued during maternity leave:

• 0.5 weeks per year aged under 22
• 1 week per year aged 22–40
• 1.5 weeks per year aged 41+
• Capped at 20 years' service and £719 weekly pay for 2026/27

Weekly pay for the calculation is your contractual weekly pay at the date of redundancy — not statutory maternity pay (which is lower). So if you were earning £35,000 before maternity, weekly pay is £673 even if you're currently on SMP at a lower rate.

This is meaningful: a parent on maternity leave doesn't have their statutory redundancy calculation reduced because of being on lower SMP.

Worked example — 6 years' service, £35,000 salary, age 31, on maternity leave

Statutory: - Weekly pay (contractual, pre-leave): £35,000 / 52 = £673 - 6 years aged 22–40: 6 × 1 × £673 = £4,038 statutory

Notice pay (contractual 1 month): - £673 × 4.33 = £2,914 notice pay (fully taxable + NI)

The redundancy pay (£4,038) is tax-free under the £30,000 threshold. Notice pay is fully taxable.

Maternity pay continues separately under standard SMP / Maternity Allowance rules until the 39-week period expires.

Holiday accrued during maternity leave (up to the redundancy date) is paid out separately — usually a meaningful figure since holiday accrues throughout maternity leave.

SMP and redundancy together — how they interact

Statutory Maternity Pay (SMP) is paid by your employer (then partly reclaimed from HMRC). What happens to SMP if you're made redundant during maternity leave:

• SMP continues for the full 39 weeks regardless of redundancy
• Your employer remains liable for SMP for the full period
• If your employer becomes insolvent, SMP can be claimed from the Redundancy Payments Service
• Once employment ends, you can also potentially access Maternity Allowance (subject to qualifying rules)

This continuity is important: redundancy doesn't cut off your maternity income.

Holiday during maternity leave + redundancy

Annual leave continues to accrue during maternity leave at your contractual rate. If you're made redundant during or after maternity leave:

• All accrued unused holiday must be paid out
• This is typically a meaningful amount (12 months of accrual at 5.6 weeks/year ≈ 28 days)
• Holiday pay is fully taxable + NI'd (not inside the £30,000 redundancy threshold)
• Paid at your normal contractual day rate (not SMP rate)

For someone on £35,000 with 25 days of accrued holiday: - 25 × (£35,000 / 260) = £3,365 holiday pay - Net after tax + NI ≈ £2,422

Read more about redundancy and holiday pay →

What if your employer skips the protection?

Common breaches of the protection:

• Selecting you despite a suitable alternative role being available
• Applying selection criteria that disadvantage people on leave (recent performance reviews while you've been absent)
• Failing to consult with you about the redundancy (consultation is a separate legal requirement)
• Offering you redundancy without offering the alternative role to which you have priority

If any of these apply, you have grounds for:

1. Unfair dismissal claim — strong because of the procedural protection
2. Discrimination claim — if selection patterns suggest maternity-related decision-making
3. Compensation — uncapped for discrimination; loss of earnings + injury to feelings

The tribunal deadline is 3 months from the dismissal date. ACAS Early Conciliation is mandatory first; many cases resolve there with a settlement agreement.

Practical steps if you receive a redundancy notice on maternity leave

1. Acknowledge receipt in writing — confirm you've received the at-risk notification but don't agree to anything yet
2. Request the consultation pack — pool description, selection criteria, timeline, available alternative roles
3. Confirm your protected status in writing — make sure HR knows the 18-month protection applies
4. Ask specifically about suitable alternative roles — get a definitive list, even if employer says "none"
5. Calculate your statutory entitlement — use the redundancy calculator
6. Document all communications — dated written notes of phone calls, meetings, decisions
7. Engage Maternity Action — free specialist helpline (0808 802 0029)
8. Get a settlement agreement reviewed independently if one is offered — usually employer-funded

Common employer mistakes to recognise

These all create discrimination/unfair dismissal exposure for the employer:

• "Performance ranking" using recent performance reviews when you've been on leave
• "Skills assessment" that depends on recent project work
• "Future availability" criteria that effectively penalise leave-takers
• Combining redundancy with restrictions on flexible-working requests on return
• Offering reduced-hours roles as "suitable alternative" with significant pay cut

If your employer is doing any of these, point them out in writing during consultation. The procedural irregularity matters in any later claim.

Practical checklist

1. Confirm protected period in writing (18 months from birth)
2. Demand list of suitable alternative roles — and dispute the suitability assessment if needed
3. Verify continuous service includes maternity leave for statutory calculation
4. Check holiday pay calculation — should be at contractual rate, not SMP rate
5. Confirm SMP continues regardless of redundancy
6. Engage Maternity Action or ACAS at first sign of discrimination
7. Don't sign a settlement agreement without independent legal advice

In short

UK maternity leave + redundancy combines strong statutory pay rights (full continuous service, contractual weekly pay) with even stronger procedural protections (priority for suitable alternative roles, extended 18 months post-birth under the 2023 Act). The protections often deter genuine pre-existing redundancies. If you receive an at-risk notice during or after maternity leave, document everything and engage specialist advice early. For the pregnancy-specific scenario see redundancy while pregnant →. For the broader cluster see the redundancy hub →.