Last Updated On – 04-09-2026
Yes, an employee can be made redundant while on sick leave. Being signed off work does not prevent an employer from carrying out a genuine redundancy process.
However, the employer must not select someone simply because they are ill, exclude them from consultation or unfairly count disability-related absence against them.
The redundancy must arise because the business no longer requires the role, workplace or number of employees—not because the employer wants to remove an employee who is unwell.
When Is Redundancy During Sick Leave Lawful?
Redundancy may be lawful when an employer has a genuine business reason for reducing its workforce. The employee’s illness can overlap with the redundancy process, but it must not be the real reason for dismissal.
A genuine redundancy situation may arise when:
- A Business Closes Permanently
- A Particular Workplace Shuts Down
- A Department Or Team Is Removed
- The Business Needs Fewer Employees To Perform Certain Work
- Falling Demand Reduces The Available Work
- Technology Or Automation Changes Staffing Requirements
- Several Positions Are Combined Into Fewer Roles
- The Business Relocates And Existing Roles Disappear
Store and site closures frequently create genuine redundancy situations. For example, the proposed Morrisons Calne store closure involved consultation and possible redeployment for affected employees.
An employer does not have to postpone a necessary restructuring exercise simply because one affected employee is on sick leave. It must, however, ensure that the employee is treated as fairly as colleagues who are still attending work.
What Is The Difference Between Redundancy And Dismissal Because Of Ill Health?
This distinction is crucial.
Redundancy concerns the employer’s need for a role or particular type of work. Ill-health capability concerns whether an individual employee can continue performing their job.
| Situation | Likely Employment Process |
| The role disappears because a department closes | Redundancy |
| The business needs three employees instead of five | Redundancy |
| The workplace permanently relocates | Potential redundancy |
| The role remains, but the employer believes the employee cannot return because of illness | Capability process |
| The employer replaces the sick employee with someone doing substantially the same job | Potentially unfair or disguised dismissal |
| Several genuine redundancies occur, including the role held by an employee on sick leave | Redundancy may be lawful |
If the role continues unchanged and another person is recruited to perform it, the employer may struggle to show that a genuine redundancy existed. The correct route may instead have been an ill-health capability procedure.
Before dismissing someone because of capability, an employer should normally obtain relevant medical information, consult the employee, consider a phased return and explore reasonable adjustments. Redundancy should not be used to avoid those responsibilities.
Must An Employer Consult Someone Who Is Off Sick?
An employee on sick leave should still be included in redundancy consultation. Their absence does not permit the employer to make decisions without informing them.
A meaningful consultation should normally give the employee an opportunity to:
- Understand Why Redundancies Are Proposed
- Review The Proposed Selection Pool
- Comment On Selection Criteria
- Check And Challenge Their Scores
- Suggest Ways To Avoid Redundancy
- Discuss Alternative Positions
- Ask Questions About Pay And Notice
- Respond Before A Final Decision Is Made
The employer should ask how the employee would prefer to communicate. Depending on the employee’s health, consultation could take place through:
- Telephone Calls
- Video Meetings
- Email Or Letters
- Shorter Meetings With Additional Breaks
- Meetings At A Neutral Location
- Written Questions And Responses
- A Representative Communicating On The Employee’s Behalf
A fit note saying that someone is not fit for work does not necessarily mean they are incapable of taking part in a consultation. However, the employer should consider the medical condition and avoid contact that could aggravate it.
If the employee is too unwell to attend, the employer should consider a reasonable postponement or an alternative method.
A business may eventually proceed if it has made reasonable attempts to involve the employee and cannot delay the process indefinitely, but it should document those attempts carefully.
How Long Must Redundancy Consultation Last?
There is no fixed statutory minimum consultation period when fewer than 20 redundancies are proposed. The process must still be genuine and take place before the employer reaches a final decision.
Collective consultation rules generally apply when an employer proposes 20 or more redundancies at one establishment within a 90-day period.
| Proposed Redundancies | Minimum Collective Consultation Period |
| 20 To 99 | At Least 30 Days Before The First Dismissal |
| 100 Or More | At Least 45 Days Before The First Dismissal |
Collective consultation does not replace individual consultation. Employees on sick leave should still have an opportunity to discuss their personal circumstances, scores and possible alternative employment.
The employment consequences associated with larger closures can be seen in the proposed HelloFresh Banbury site closure, where redeployment and consultation were important considerations for affected staff.
Can Sickness Absence Be Used As A Redundancy Selection Criterion?
Attendance can sometimes form part of a redundancy scoring system, but employers must apply it carefully.
A fair selection system should be objective, measurable and consistently applied. Common criteria include:
- Relevant Skills
- Qualifications
- Experience
- Performance
- Disciplinary Record
- Attendance
- Ability To Perform The Remaining Work
An employer should not automatically include every period of sickness absence. It may need to remove or adjust absences connected with:
- Disability
- Pregnancy
- Maternity
- Adoption Or Other Protected Family Leave
- Workplace Injuries
- An Employer’s Failure To Make Reasonable Adjustments
For example, scoring a disabled employee poorly because they attended hospital treatment could place them at a serious disadvantage. The employer may need to disregard those absences or adjust the scoring system.
Even ordinary sickness absence should be supported by accurate records. Employers should not rely on assumptions, incomplete data or a manager’s personal opinion.
Does Long-Term Sickness Count As A Disability?
A physical or mental health condition may qualify as a disability when it has a substantial and long-term negative effect on normal day-to-day activities. “Long-term” will generally mean that the effect has lasted, or is expected to last, at least 12 months.
Conditions that may qualify include:
- Depression
- Anxiety Disorders
- Chronic Pain
- Long-Term Mobility Conditions
- Autoimmune Conditions
- Neurological Conditions
- Serious Respiratory Conditions
- Cancer
Some conditions receive protection from diagnosis, while other cases depend on their severity, duration and effect on the individual.
An employee does not always need a formal diagnosis before an employer’s responsibilities arise. If the employer knew—or could reasonably have been expected to know—about the disability, it may have a duty to make reasonable adjustments.
The importance of recognising health conditions and workplace discrimination was highlighted by the Erin Ong employment tribunal case, which involved asthma-related working conditions and disability discrimination findings.
What Reasonable Adjustments Might Be Required?
Reasonable adjustments during redundancy consultation might include:
- Holding Meetings Remotely
- Providing Information In Writing
- Allowing Additional Time To Respond
- Scheduling Meetings Around Medical Treatment
- Permitting A Support Person Or Representative
- Adjusting A Selection Test
- Removing Disability-Related Absence From Scores
- Providing Documents In An Accessible Format
- Considering Modified Duties In An Alternative Role
An employer is not normally required to create an entirely unnecessary position. However, it should consider existing vacancies, modified working arrangements and reasonable changes that could remove a disability-related disadvantage.
Can An Employee Be Selected Because They Are Off Sick?
An employer should not select someone simply because they are absent, inconvenient to contact or unable to defend their position in person.
Warning signs that the decision may be unfair include:
- The Employee Was Added To The Selection Pool After Becoming Ill
- Managers Made Negative Comments About The Sick Leave
- Disability-Related Absences Reduced The Employee’s Score
- Colleagues Received Consultation Information That The Employee Did Not
- The Employer Refused Remote Or Written Consultation
- Scores Were Changed Without An Explanation
- The Employee’s Role Continued After The Supposed Redundancy
- A Replacement Was Recruited To Perform The Same Work
- Suitable Vacancies Were Hidden Or Not Discussed
Sickness itself is not automatically a protected characteristic. However, the reason for the absence may involve disability, pregnancy or another legally protected situation.
Selection may also be unlawful when connected to whistleblowing, trade union activity, health and safety concerns or asserting a statutory employment right.
Does An Employer Have To Offer Another Job?
Employers should identify suitable alternative vacancies before confirming redundancy. This may include roles elsewhere in the organisation or, depending on the business structure, within an associated company.
Whether a position is suitable can depend on:
- Pay And Benefits
- Working Hours
- Status And Responsibilities
- Required Skills
- Location And Travel
- Health Requirements
- The Employee’s Personal Circumstances
An alternative role should usually start within four weeks of the previous employment ending. When the terms differ, the employee will normally have a statutory four-week trial period. A longer trial can sometimes be agreed in writing where retraining is required.
An employee who unreasonably refuses a genuinely suitable alternative role may lose their entitlement to statutory redundancy pay.
However, a role may reasonably be refused if it involves substantially lower pay, unsuitable hours, excessive travel or duties the employee cannot safely perform.
Employees who are pregnant or within certain protected family-leave periods may have priority rights to suitable alternative vacancies. That protection can require the employer to offer the vacancy rather than asking the protected employee to compete for it.
Is Redundancy Pay Still Available During Sick Leave?
Sick leave does not normally remove an employee’s entitlement to statutory redundancy pay.
To qualify, an employee will generally need:
- Employee Status
- At Least Two Years Of Continuous Employment
- A Genuine Redundancy Dismissal
Statutory redundancy pay is calculated using the employee’s age, length of service and weekly pay:
- Half A Week’s Pay For Each Full Year Aged Under 22
- One Week’s Pay For Each Full Year Aged 22 To 40
- One And A Half Weeks’ Pay For Each Full Year Aged 41 Or Over
Only the most recent 20 years of service can be included.
For redundancies taking effect on or after 6 April 2026 in Great Britain, the statutory weekly pay figure is capped at £751.
The maximum statutory redundancy payment is £22,530. An employment contract or workplace redundancy scheme may provide more.
For an employee with regular hours and pay, the calculation should generally use their normal weekly pay rather than treating the statutory sick pay figure as their usual wage.
What Happens To Notice Pay When Someone Is Off Sick?
An employee who is made redundant is normally entitled to work their notice period or receive payment in lieu of notice, where permitted.
The statutory minimum notice is generally:
| Continuous Employment | Minimum Notice |
| One Month To Two Years | One Week |
| Two To Twelve Years | One Week For Each Complete Year |
| Twelve Years Or More | Twelve Weeks |
Notice pay during sickness can be complicated.
If the employee’s contractual notice period is the same as the statutory notice period, or less than one week longer, an employee dismissed or made redundant while sick will generally be entitled to full normal pay during notice.
If the contractual notice period is at least one week longer than the statutory minimum, the employee may only receive the pay applicable to their absence, such as statutory or contractual sick pay.
The employment contract should therefore be checked before assuming that full salary or sick pay applies.
Does Holiday Continue To Build Up During Sick Leave?
Statutory holiday entitlement generally continues to accrue while an employee is on sick leave. When employment ends, the final payment should include payment for statutory holiday that has been earned but not taken.
The final payment may therefore contain several separate elements:
- Salary Or Sick Pay Owed
- Notice Pay
- Statutory Or Contractual Redundancy Pay
- Accrued Holiday Pay
- Unpaid Expenses Or Commission
- Other Contractual Benefits
These payments can be taxed differently. The employee should request a written breakdown if the figures are unclear.
Can Someone Attend A Redundancy Meeting While Signed Off Sick?
Yes. Attending a consultation meeting does not necessarily contradict a fit note. A fit note relates to fitness for work, while a short consultation may still be manageable.
The employee should be open about any limitations. For example, they could request:
- A Shorter Meeting
- A Video Or Telephone Call
- Written Questions
- Extra Time To Consider Proposals
- Breaks During The Meeting
- Attendance By A Representative
- Rescheduling Around Treatment
If attending would harm the employee’s health, this should be explained to the employer and supported by medical evidence where possible.
Can Redundancy Be Confirmed Without A Meeting?
It may sometimes be possible for an employer to reach a decision without a face-to-face meeting, particularly where the employee cannot attend. However, the employee should still have a meaningful opportunity to respond through another method.
An employer should not treat one missed meeting as permission to complete the process without consultation. It should attempt contact, offer alternatives and consider whether a short postponement is reasonable.
A process is more likely to be unfair when the outcome appears predetermined or consultation begins only after the employer has already decided who will lose their job.
What Should An Employee Do If The Process Appears Unfair?
An employee who believes their illness affected the redundancy decision should act promptly.
Useful steps include:
- Request The Business Reason: Ask why redundancies are necessary and which roles are affected.
- Ask About The Selection Pool: Check which employees were compared and why they were placed in that pool.
- Request The Criteria And Scores: Ask for a breakdown showing how each score was reached.
- Identify Protected Absence; Highlight any absence connected with disability, pregnancy or protected family leave.
- Propose Adjustments: Explain how consultation can be made accessible while the employee is unwell.
- Ask About Vacancies: Request a list of available alternative roles throughout the organisation.
- Keep Evidence: Save letters, emails, fit notes, meeting invitations, scoring documents and vacancy information.
- Submit An Appeal; Use the employer’s redundancy appeal process and explain what was unfair.
- Raise A Grievance If Appropriate: A grievance may be appropriate where the employee believes discrimination or serious procedural failures occurred.
- Protect Tribunal Deadlines: Internal discussions do not automatically stop the legal deadline for bringing a claim.
Can The Redundancy Be Challenged?
A redundancy may potentially be challenged when:
- There Was No Genuine Redundancy Situation
- The Selection Pool Was Unreasonable
- Scoring Was Inaccurate Or Discriminatory
- Consultation Was Missing Or Meaningless
- Disability-Related Absence Was Used Unfairly
- Reasonable Adjustments Were Refused
- Suitable Alternative Work Was Ignored
- The Employer Used Redundancy To Disguise An Ill-Health Dismissal
As of September 2026, an employee generally needs two years of service to bring an ordinary unfair dismissal claim. That qualifying period is scheduled to fall to six months for dismissals from 1 January 2027.
No minimum service is normally required for a discrimination claim or many automatically unfair dismissal claims. Statutory redundancy pay continues to require at least two years of qualifying service.
Tribunal deadlines are strict. As of September 2026, the usual limit for many employment claims remains three months minus one day. The limit for most claims is due to increase to six months minus one day from 1 October 2026.
Because transitional rules and the type of claim can affect the deadline, an employee should begin the Acas Early Conciliation process as soon as possible.
Frequently Asked Questions
Can an employer contact an employee who is on sick leave about redundancy?
Yes. Reasonable contact about a redundancy process is permitted. The employer should agree an appropriate communication method and avoid excessive contact that could worsen the employee’s condition.
Does a fit note prevent redundancy?
No. A fit note confirms that the employee is not fit for work or may need adjustments. It does not prevent a genuine redundancy process.
Can stress-related sick leave protect someone from redundancy?
Stress-related absence does not create automatic protection from redundancy. However, a serious and long-term mental health condition may qualify as a disability, requiring non-discriminatory treatment and reasonable adjustments.
Can an employer use attendance when scoring employees?
Attendance may sometimes be used, but the records must be accurate and applied fairly. Disability-related, pregnancy-related and certain protected absences should not disadvantage the employee.
Can an employee receive redundancy pay while receiving sick pay?
Yes. Sick pay and redundancy pay are separate entitlements. Eligible employees can receive statutory or contractual redundancy pay when their employment ends.
Can an employee refuse to attend a redundancy meeting while sick?
An employee can explain that they are too unwell to attend and request another arrangement. They should not ignore correspondence, as the employer may eventually proceed after making reasonable attempts to consult.
Can someone be made redundant immediately after returning from sick leave?
Yes, if the redundancy is genuine and the employee was selected through a fair process. The timing may nevertheless justify closer examination if the role remains or the illness appears to have influenced the decision.
Can a redundant employee remain on sick leave during notice?
Yes. Normal sickness-reporting requirements continue during the notice period. The amount paid will depend on statutory notice rights, the contractual notice period and the employer’s sick-pay scheme.