Redundancy Rights on Maternity Leave

Introduction

Redundancy occurs when an employer needs to reduce their workforce due to business closure, restructuring, or diminished need for a particular role. For employees navigating pregnancy or returning from parental leave, the stakes are especially high.

Significant legal changes came into effect from 6 April 2024. These changes strengthen redundancy protection during pregnancy, maternity leave, and for up to 18 months after childbirth. The updates reflect growing recognition of the need for long-term employment security during and after parental leave.

Kingfisher Professional Services understands the complex overlap between redundancy law and parental protections. We help businesses comply with legal obligations and support individuals in understanding and asserting their rights. Our legal experts provide clarity and confidence when it matters most, whether you are managing workforce changes or navigating maternity-related redundancy concerns.

Updated Legal Protections 

Pre‑2024 Position 

Prior to April 2024, redundancy protection for parents was limited. Employees were protected only during the period of maternity leave, not during pregnancy itself or after returning to work.

This left many vulnerable to selection for redundancy during key transition periods, especially shortly after returning from parental leave. While unfair dismissal claims could sometimes be made, proving discrimination linked to pregnancy or maternity was often difficult without clear legal backing.

This gap in protection created uncertainty for parents and legal risk for employers. Inconsistent handling of redundancies involving employees on or returning from maternity leave risked automatically unfair dismissal claims under the Employment Rights Act 1996.

Changes from 6 April 2024 

New protections came into force under the Protection from Redundancy (Pregnancy and Family Leave) Act. From 6 April 2024, the redundancy protected period begins the moment an employee informs their employer of their pregnancy.

This protected period extends until 18 months after the child’s birth, giving returning parents extended job security. For those on maternity leave, this means the priority period does not end when the leave ends. Instead, it continues well into the transition back to work.

Importantly, this protection applies not only to maternity leave but also:

• Adoption leave
• Shared parental leave (SPL)
• Neonatal leave
• In cases of miscarriage or stillbirth, protection lasts until two weeks after the end of pregnancy

This extension gives employees longer coverage during a vulnerable time and ensures they are prioritised for any suitable alternative vacancy. It also clarifies employers’ legal obligations during the full cycle of parental-related absence, encouraging proactive planning and fair redundancy processes.

Redundancy Rights During Protected Period 

Genuine Redundancy vs. Discrimination 

Employers must distinguish between genuine redundancy situations and those that could be seen as discriminatory. A genuine redundancy typically involves:

• Workplace closure
• Business reorganisation
• Diminished need for a specific role

However, selecting someone for redundancy because of pregnancy, maternity leave, or associated absences is automatically unfair and unlawful. Under the Employment Rights Act 1996, such actions can amount to both unfair dismissal and maternity discrimination.

Employers must use fair selection criteria and apply them objectively. Documentation should support all decisions, showing clear business justification. Any link between maternity-related absence and redundancy selection must be avoided.

Consultation Process 

All employees at risk of redundancy must be included in the consultation process, regardless of whether they are on maternity leave. Excluding someone because they are absent is not only poor practice, it is unlawful.

Employers must make reasonable efforts to engage employees on maternity leave in consultation meetings. These can be conducted via video call or phone. ‘Keeping in Touch’ (KIT) days, up to 10 paid days, can be used, with agreement, for redundancy-related discussions.

The consultation should be meaningful and genuine, offering the employee the opportunity to comment on the proposals, challenge selection criteria, and explore alternatives. Lack of consultation may render a dismissal unfair, especially where it involves someone in a protected period.

Suitable Alternative Vacancy 

Under Regulation 10 of the Maternity and Parental Leave Regulations 1999, employees on maternity leave who are at risk of redundancy have priority access to any suitable alternative vacancy.

The alternative role must:

• Be suitable and appropriate
• Not be substantially less favourable in terms of pay, location, or status

If such a role exists, the employer must offer it to the protected employee before offering it to others. This applies without competition; the employee should not be made to apply or compete.

Failure to offer a suitable role can lead to a finding of automatic unfair dismissal. Employers must document efforts made to identify alternative vacancies and evidence how priority was given during the selection process.

Entitlements on Redundancy 

Statutory Redundancy Pay & Notice 

If an employee has two or more years of continuous service, they are entitled to statutory redundancy pay. This calculation remains unaffected by any period of maternity leave. The amount is based on:

• Age
• Length of service (up to 20 years)
• Weekly pay (subject to statutory cap)

Notice periods must also be honoured, whether contractual or statutory (typically one week’s notice per year of service, up to 12 weeks). During the notice period, employees continue to accrue rights and must be paid accordingly.

Statutory Maternity Pay & Holiday Pay (200 words)

If an employee is made redundant during maternity leave and they are still entitled to receive statutory maternity pay (SMP), this must continue for the full 39-week period.

The redundancy does not affect SMP entitlement as long as eligibility conditions are met. Employers must also pay any accrued but unused holiday entitlement up to the termination date.

Importantly, maternity leave counts towards continuous service, meaning an employee cannot lose accrued benefits due to being on leave. Employers should ensure that SMP, holiday pay, and redundancy pay are calculated accurately and communicated clearly.

Managing Redundancy: Employer’s Checklist 

A robust and fair redundancy process reduces the risk of legal claims and ensures compliance with redundancy protection laws. Employers should follow this step-by-step checklist:

1. Confirm Genuine Redundancy
   • Review business case and identify affected roles
2. Identify At-Risk Employees
   • Include employees on maternity/adoption/shared parental leave
3. Develop Fair Selection Criteria
   • Use objective, measurable, and role-related metrics
4. Consult Thoroughly
   • Invite affected employees (including those on leave)
   • Use remote methods where needed
   • Offer KIT days if applicable
5. Assess Suitable Alternative Vacancies
   • Prioritise employees in the protected period
   • Offer without requiring a competitive process
6. Issue Notice and Handle Appeals
   • Allow employees to appeal decisions
   • Keep records of communication and outcomes
7. Calculate and Process Payments
   • Include redundancy pay, SMP, and holiday pay
8. Document the Process
   • Maintain detailed records to demonstrate fairness and compliance

How Kingfisher Can Help 

Kingfisher Professional Services offers end-to-end support for managing redundancy involving maternity, adoption or shared parental leave. Our services include:

• Expert Consultancy: Strategic advice on policy reviews, risk assessment, and compliance with the latest legal changes, including the extended protected period from April 2024. We help you plan proactively and avoid legal pitfalls.
• Bespoke Training: Tailored training sessions for HR professionals and line managers covering redundancy consultation best practice, suitable alternative vacancies, and avoiding discrimination. Designed to build competence and consistency across your team.
• 24/7 Legal Support: Round-the-clock access to legal experts for advice on sensitive or complex cases, from initial planning to appeal outcomes. We provide template letters, consultation scripts, and guidance at every step.

With Kingfisher’s help, you can navigate redundancy with confidence, protecting your business while ensuring compliance with parental leave protections and employment law.

Conclusion 

Redundancy protections for parents have evolved, offering extended security and stronger rights throughout pregnancy, maternity, and return-to-work phases. Employers must approach redundancy with sensitivity, fairness, and legal awareness, particularly when handling protected periods.

Fair selection, meaningful consultation, and priority treatment for suitable roles are no longer optional; they are legal requirements. Missteps can result in automatic unfair dismissal claims and discrimination allegations.

If your organisation is managing change, or if you are a parent concerned about redundancy rights, speak to Kingfisher Professional Services today. Our expert advice, policy support, and redundancy management services will ensure you handle every step confidently and compliantly.

Reach out now for clear, practical support on navigating maternity-related redundancy challenges.