Are Tech Redundancies Leaving Workers Shortchanged?

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In the Spotlight: Redundancy Rights in 2025 - Are Tech Redundancies Leaving Workers Shortchanged?

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Redundancy Rights in 2025: Are Tech Redundancies Layoffs Leaving Workers Shortchanged?


Tech redundancies are surging in 2025. With AI advancements and economic shifts, UK tech workers face redundancy at unprecedented rates. But as jobs vanish, a key question looms: Are tech redundancies respecting your redundancy rights, or leaving you shortchanged? Understanding your entitlements is crucial—here’s the rundown.


What Are Your Redundancy Rights in 2025?


Redundancy occurs when your role ceases to exist due to business needs—like restructuring or cost-saving. The Employment Rights Act 1996 outlines your rights:


  • Statutory redundancy pay: Two years’ service earns you pay based on age, weekly wage (capped at £719 from 6 April 2025), and years of service).
  • Notice period: Your contractual notice or one week per year of service (up to 12 weeks) whichever is the greater, or pay in lieu if you’re let go instantly.
  • Fair process: Employers must consult and use objective selection criteria.
  • Alternative work: If suitable alternative employment exists, your employer must offer it to you, or let you apply for potentially suitable alternative work before making you redundant.


Tech layoffs in 2025, however, are raising concerns about compliance.


Tech Redundancies in 2025: A Rising Wave


The tech sector is under pressure. A 2025 Tech Nation report estimates 50,000+ UK tech jobs cut in the last year, driven by:

  • AI automation: Roles replaced by tech efficiencies.
  • Economic strain: Funding cuts post-inflation recovery.
  • Global shifts: Companies offshoring to reduce costs.


Mass redundancies are often rushed, risking corners being cut on legal obligations.


Are You Being Shortchanged?


Tech redundancies can fall short. Watch for:

  • Unfair Selection: Selection based on hybrid status or recent hires—rather than skills—could lead to unfair dismissal claims alongside redundancy issues.
  • Inadequate Pay: Statutory pay is the minimum. Many tech contracts offer enhanced terms (e.g., two weeks - one month’s full pay per year). If you’re given less and your redundancy is unfair, you’re owed more.
  • No Consultation: For 20+ redundancies, 30-45 days’ consultation is required. Skipping this risks a protective award (up to 90 days’ pay).
  • Notice Issues: Immediate exits with miscalculated pay in lieu (excluding bonuses) can undervalue your entitlement.
  • Bonus Issues: Redundancy may forfeit any right to an annual bonus entitlement


Tech Layoff Trends in 2025


Workers are noticing:

  • Hybrid bias: Remote staff targeted in selections.
  • Gig gaps: Zero-hours tech workers missing rights.
  • Speed risks: Rapid cuts skipping fair process.


These trends highlight where rights might slip through the cracks.


How to Protect Your Redundancy Rights


If you’re facing a tech redundancy:

  1. Review your contract: Check for enhanced pay or notice terms.
  2. Demand clarity: Request selection criteria, consultation proof and an organogram for department structures pre and post redundancy.
  3. Act fast: File claims within three months less one day via Acas conciliation.
  4. Get advice: Solicitors can spot shortfalls and negotiate.


Springhouse Solicitors: Your Redundancy Experts

Worried about a tech redundancy? Springhouse Solicitors ensures you get what’s yours. From challenging unfair processes to securing full pay, our team delivers, we’re here to help.


Don’t Lose Out

Tech redundancies are rampant in 2025, but your rights remain. If your redundancy feels unfair or underpaid, you can fight back. Know your entitlements, gather evidence, and seek expert support—don’t let a layoff leave you shortchanged.



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Springhouse Solicitors

0800 915 7777

At Springhouse Solicitors we offer a range of services, so please contact our friendly customer services team to discuss further via  hello@kilgannonlaw.co.uk or  0800 915 7777.



Disclaimer 

The above provides a general overview of areas in employment law and is not intended nor construed as providing specific legal advice.  This article is for information purposes only and is correct at the time of publication. It does not constitute legal advice.

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