Teacher Redundancy Pay Calculator

Understanding Teacher Redundancy in the UK

Redundancy occurs when a school or academy no longer requires a particular teaching role. It is governed by the Employment Rights Act 1996 and supplemented by the Burgundy Book for maintained schools. Redundancy applies to the position, not the person — a school cannot use it to dismiss an underperforming teacher, as that falls under separate capability procedures. Common triggers include falling pupil numbers, budget reductions, curriculum restructuring, and school mergers.

In maintained schools, the governing body is the employer and makes redundancy decisions, while in academies and multi-academy trusts (MATs) the trust board acts as employer. Redundancy can be compulsory, using agreed selection criteria, or voluntary, where staff express interest in leaving. Even voluntary redundancy requires fair processes and proper consultation with affected staff and union representatives.

Consultation and Selection

Employers must consult meaningfully before making redundancies. For 20 to 99 proposed redundancies within 90 days, collective consultation must begin at least 30 days beforehand; for 100 or more, the period is 45 days. Even below these thresholds, individual consultation with each affected teacher is required. Teachers have the right to be accompanied by a trade union representative at all formal meetings, and the school must explain the selection rationale, consider alternatives, and hear representations.

Selection criteria must be fair, objective, and agreed in advance. The most robust approach is a skills matrix scoring qualifications, subject expertise, key stage coverage, and pastoral contributions. Last in, first out (LIFO) remains permissible but risks indirect age discrimination if used alone. Criteria based on protected characteristics under the Equality Act 2010 — including union membership, pregnancy, part-time status, age, disability, or race — are unlawful and can lead to tribunal claims.

Statutory Redundancy Pay Explained

Teachers with two or more years of continuous service are entitled to statutory redundancy pay, calculated using age, length of service (capped at 20 years), and weekly pay (capped at £751 for 2026/27). The multipliers per complete year of service depend on the employee's age in that year of service:

The maximum possible statutory payment is £22,530.

Statutory redundancy pay is tax-free up to £30,000. Since the maximum statutory amount falls below this threshold, it is always received free of income tax and National Insurance. However, payments in lieu of notice (PILON) are always taxable regardless of the £30,000 exemption, and enhanced redundancy above £30,000 is also subject to tax.

Enhanced Redundancy: The Burgundy Book

The Burgundy Book sets out nationally agreed conditions of service for teachers in England and Wales, negotiated through the Teachers' Joint Negotiating Committee. Under enhanced arrangements, many local authorities and academy trusts calculate redundancy using the teacher's actual weekly pay rather than the statutory cap, which can substantially increase the payment for experienced teachers on higher pay scales. Some employers apply additional multipliers or lump sums on top of the statutory formula.

Academy schools are not automatically bound by the Burgundy Book. Staff who transferred under TUPE retain their existing terms, but the trust can negotiate changes over time. Teachers in academies should check their individual contract and any collective agreements to understand their specific entitlements. Always seek advice from your union before entering into redundancy negotiations.

Settlement Agreements and Notice Periods

A settlement agreement is a legally binding contract that waives the teacher's right to bring tribunal claims in return for a financial package, often more generous than statutory entitlement. For validity, the agreement must be in writing, and the teacher must have received independent legal advice from a solicitor or trade union official. Employers typically contribute £350 to £500 towards legal costs. Typical terms include the redundancy payment, PILON, an ex gratia sum, an agreed reference, and confidentiality clauses. Never feel pressured to sign quickly — take time to have it reviewed by your union or solicitor.

Under the Burgundy Book, teachers' notice must expire at the end of a school term, with resignation dates of 31 October, 28 February, and 31 May. This often results in notice periods longer than the statutory minimum of one week per year of service (up to 12 weeks). During the notice period, a teacher may be placed on garden leave — remaining employed with full pay but not required to attend work. Academy teachers may have different notice provisions depending on whether they transferred under TUPE or were recruited directly by the trust.

Appeals, Support and Next Steps

Every teacher made redundant has the right to appeal. The appeal must be heard by a panel that did not make the original decision. Grounds include procedural unfairness, failure to offer suitable alternative employment, new information, or a belief that the redundancy is not genuine. If the appeal fails, the teacher can bring an unfair dismissal claim at an employment tribunal within three months of termination, following mandatory ACAS early conciliation.

Before redundancy is finalised, the employer must consider suitable alternative roles. In maintained schools, the local authority should look across all its schools; in MATs, the trust should check vacancies across the trust. Teachers offered suitable alternative employment who unreasonably refuse may lose their redundancy entitlement, though a four-week statutory trial period applies. The DfE Teaching Vacancies service and supply teaching are useful routes for finding new roles. Teachers should also check the impact on their Teachers' Pension Scheme benefits and seek independent financial advice if considering early retirement.

Union Representation

The main teaching unions — the NEU, NASUWT, NAHT, and ASCL — provide specialist redundancy advice, attend consultation and appeal meetings, scrutinise selection criteria, negotiate enhanced terms, review settlement agreements, and can fund tribunal claims on members' behalf. Union membership is strongly recommended for all teachers. If you are not yet a member, join as soon as possible — fees are tax-deductible and typically cost £150 to £300 per year.