Rule · ERA 1996 s.155

The 2-year qualifying service rule

If you have been there less than 2 complete years of continuous service, you get nothing. There is no discretion. The rule was halved from 1 year to 2 years on 6 April 2012 and has not changed since.

What counts as continuous service

Continuous service is governed by ERA 1996 s.212. Weeks counting include: weeks you actually worked, paid sick leave, statutory maternity / paternity / adoption / shared parental leave, contractual paid leave, and weeks you were temporarily absent by arrangement. Strike days do not break continuity but do not count toward the 2 years.

A change of employer through TUPE preserves continuous service (the new employer inherits your start date). A short gap between consecutive fixed-term contracts under 4 weeks generally preserves continuity by virtue of s.212(3)(b).

Dismissal just before the 2-year point

Some employers dismiss at week 103 to dodge redundancy. This is harsh but, on its own, lawful. The 2-year rule is absolute for statutory redundancy. But: if the reason was discriminatory, or if the dismissal was retaliatory under whistleblowing law, there is no qualifying period for the discrimination or whistleblowing claim. Speak to ACAS on 0300 123 1100 before the 3-month unfair dismissal window closes.

Is there ANY redundancy entitlement under 2 years?

Not statutory. Some employers run an enhanced scheme that pays from day one or after 1 year. Check your contract and staff handbook. Many large employers also have a voluntary severance offer with no minimum service in formal redundancy rounds.