The retail and hospitality sectors have long been vulnerable to economic shifts, but recent months have seen a sharp rise in redundancies triggered by business closures and restructures. River Island’s announcement of store closures and job cuts is just one of several high-profile examples that have left employees uncertain about their rights and options.

If you’re working in these industries and facing redundancy, understanding your legal protections is essential. Here’s what you need to know.

What Is Redundancy and When Is It Lawful?

Redundancy occurs when your role is no longer needed—often due to business closure, restructuring, or a drop in demand. It’s not a reflection of your performance. UK law requires employers to follow a fair and transparent process, including proper consultation and objective selection criteria. If your employer fails to do this, you may have grounds to challenge the redundancy.

Your Right to Consultation

Employers must consult with you before making your role redundant. If 20 or more employees are affected, collective consultation rules apply. This means your employer must engage with employee representatives or trade unions and provide key information about the reasons for redundancy and how employees will be selected.

Statutory Redundancy Pay

If you’ve worked for your employer for two years or more, you may be entitled to statutory redundancy pay. This is calculated based on your age, length of service, and weekly pay. Employers may also offer enhanced packages, but these are discretionary.

Settlement Agreements and Legal Advice

In some cases, employers may offer a settlement agreement, which is a legally binding document that outlines the terms of your exit, including compensation. Before signing, you must receive independent legal advice. Farleys’ employment solicitors can help you assess whether the offer is fair and whether any claims (such as unfair dismissal or discrimination) should be pursued.

Common Pitfalls to Avoid

Employees often miss out on their rights due to lack of awareness, including failing to identify collective redundancy situations, unclear documentation, and missed deadlines for tribunal claims. If you’re unsure about your situation, seek legal advice promptly.

What If Your Employer Goes Into Administration?

If your employer enters administration, your employment may be terminated quickly. However, you still have rights. You may be able to claim unpaid wages, holiday pay, and redundancy pay from the government’s Insolvency Service. Keep records of your employment and any communications from your employer.

Recent Legal Developments

The employment law landscape is evolving. The Labour government’s roadmap includes plans to strengthen protections against unfair dismissal from day one, ban exploitative zero-hour contracts, and expand flexible working rights. While these changes are expected by 2027, they signal a shift toward greater employee protections.

Next Steps for Employees

If you’re facing redundancy, here’s what you should do:

  • Request written confirmation of the redundancy and the reasons behind it.

  • Ask for a copy of the redundancy policy and selection criteria.

  • Check your eligibility for statutory redundancy pay.

  • Seek legal advice before signing any settlement agreement.

  • Consider whether you have grounds for an employment tribunal claim.

Farleys’ employment law experts offer confidential advice tailored to your situation. Whether you’re navigating redundancy, negotiating a settlement, or considering legal action, our employment law team is here to support you. Call the team today on 0845 287 0939, get in touch by email, or use the online chat below.