Understanding redundancy rights on maternity leave is essential for UK employers. I’m John Bloor from EBS Law, and in this guide I explain your obligations, the risks if you get it wrong, and the practical steps you can take to ensure a fair and lawful redundancy process when an employee is on maternity leave.
The legal framework you must follow
Employees on maternity leave enjoy enhanced protection under the Employment Rights Act 1996 and the Equality Act 2010. Redundancy during maternity leave is not automatically unlawful, but employers must show that the dismissal is genuinely due to redundancy and not connected to pregnancy or maternity. More importantly, you must comply with the special priority right to be offered suitable alternative vacancies, which applies even if other employees are more qualified.
Enhanced protection from day one
An employee does not need two years of service to claim unfair dismissal if the dismissal is linked to pregnancy or maternity leave. Any decision to dismiss or select for redundancy that is influenced, even partly, by maternity is likely to be automatically unfair and potentially discriminatory. The compensation for such claims is uncapped and can include injury to feelings awards.
What redundancy rights on maternity leave mean in practice
When carrying out a redundancy process, employees on maternity leave must be treated fairly but also benefit from extra legal safeguards. These include:
- Priority status for suitable vacancies. If a suitable alternative role exists, it must be offered to the employee on maternity leave before other at-risk employees are considered.
- Full consultation rights. The employee must be consulted about the redundancy process, even if they are away from the workplace. Avoiding contact could amount to discrimination.
- Protection from selection bias. You cannot select someone for redundancy because of pregnancy, maternity leave, or related absence.
Risks of mishandling redundancy rights on maternity leave
Failing to follow the correct procedure exposes your business to claims of automatic unfair dismissal and maternity discrimination. Claims can be expensive and reputationally damaging. Employers also risk losing at tribunal even where redundancy was genuine, if they failed to offer a suitable alternative vacancy or skipped consultation. That is why careful planning and documented fairness are essential.
If you would like free advice, John Bloor and the team are here to help. Call John today on 01625 875587 or email enquiries@ebslaw.co.uk for tailored support.
Consultation during maternity leave
Employees on maternity leave must still be consulted fully and fairly. This may mean arranging meetings at a convenient time, offering remote participation, or providing written updates. A lack of meaningful consultation is a common reason why employers lose tribunal claims. Make sure you keep communication open and balanced — consultation should be genuine, not a box-ticking exercise.
Suitable alternative employment
If you identify a vacancy that is suitable in terms of status, terms, and location, you must offer it to the employee on maternity leave before others. This right is unique: the law gives priority even if another candidate is objectively more skilled. If you fail to offer such a vacancy, any dismissal will almost certainly be unfair. Government guidance on redundancy during maternity leave can be found here: gov.uk: redundancy during maternity leave.
Process steps to follow when redundancy affects maternity leave
A robust process helps protect your business. Typical steps include:
- Identifying a genuine redundancy situation (reduced need for work, business closure, or reorganisation)
- Applying objective and fair selection criteria unrelated to maternity absence
- Consulting the employee fully, including meetings and written updates
- Reviewing and offering any suitable alternative vacancies first to the employee on maternity leave
- Confirming the decision in writing and giving appropriate notice
- Explaining redundancy pay, accrued holiday, and pension contributions
Redundancy pay and maternity pay
Employees on maternity leave remain entitled to statutory redundancy pay if they meet the two-year service requirement. They also continue to receive statutory maternity pay (SMP) or maternity allowance where applicable, even if dismissed for redundancy during leave. SMP is not reduced by redundancy pay, and any untaken accrued holiday must also be paid. Employers must ensure payroll processes reflect both redundancy entitlements and maternity pay.
Extending consultation where needed
Sometimes additional time is needed for consultation if the employee is on leave. It may be appropriate to extend the consultation window slightly, ensuring the employee has a genuine opportunity to engage. A rushed consultation process is risky and easily challenged at tribunal.
Fair alternatives to redundancy
In some cases, exploring redeployment, retraining, or temporary adjustments may avoid redundancy altogether. Employers should actively look for alternatives, as tribunals expect evidence that dismissal was genuinely a last resort. Examples include:
- Offering part-time or flexible hours in another role
- Providing training for a vacancy in a different department
- Agreeing a temporary secondment until the business stabilises
Handling communication with sensitivity
How you communicate redundancy during maternity leave matters greatly. Employers should be clear, respectful, and supportive. A dismissive or poorly handled meeting can escalate into a dispute. Explain the reasons clearly, outline the process, and confirm the right of appeal. Ensure notes are kept and follow up in writing.
Checklist before deciding redundancy during maternity leave
- Is the redundancy situation genuine and supported by evidence?
- Have you applied fair selection criteria unrelated to maternity absence?
- Have you fully consulted the employee and documented discussions?
- Have you identified and offered any suitable alternative roles?
- Have you confirmed redundancy pay, holiday, and maternity pay entitlements?
Settlement agreements
Sometimes, a settlement agreement is a practical way to resolve redundancy during maternity leave, especially if disputes about suitability of roles or consultation arise. Settlement provides certainty for both sides and avoids the risk of tribunal litigation. Employers should ensure the process remains voluntary and legally compliant.
Documentation you should keep
Retain selection criteria, consultation notes, vacancy assessments, and written offers of alternative roles. Clear documentation is the strongest evidence of fairness if challenged. It also reassures other employees that your process was transparent and non-discriminatory.
Contact John Bloor today for expert support at EBS Law. We’re here to ensure your business stays protected every step of the way. Call 01625 875587 or email enquiries@ebslaw.co.uk.
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Disclaimer: This article provides general guidance only and does not constitute legal advice. For tailored advice on your specific circumstances, please contact us directly.