Following reports that UK flooring specialist Headlam has entered administration, further job cuts have been announced across its operations. If you are an employee affected by redundancy announcements at Headlam, understanding your legal rights under England and Wales employment law is essential during this process.
What has been announced
- On 7 October 2026, further job cuts were reported at Headlam following the company entering administration.
- The total number of roles affected and the specific sites involved have not been officially stated, but the cuts are reported to affect staff across the business's operations.
About the company
Headlam is a UK-based flooring distributor and specialist operating in the retail and wholesale sector.
What happens next
Where redundancies are proposed in an administration, statutory processes under England and Wales employment law still apply.
If an employer proposes to make 20 to 99 redundancies at one establishment within 90 days, collective consultation must last at least 30 days before dismissals take effect. For 100 or more redundancies, consultation must last at least 45 days.
Staff with at least two years of continuous service are entitled to statutory redundancy pay, calculated using age, length of service, and weekly pay up to statutory caps.
When a company enters administration and lacks funds to pay statutory entitlements, employees can claim statutory redundancy pay, unpaid wages, and notice pay through the government Insolvency Service.
Voluntary or compulsory redundancy
Voluntary redundancy occurs when an employer invites staff to put themselves forward for redundancy under agreed terms.
Compulsory redundancy happens when the employer selects employees for dismissal without their agreement, following an objective selection and scoring process.
In administration scenarios, formal voluntary programmes may be bypassed in favour of direct compulsory dismissals depending on operational requirements.
Your settlement agreement
Some employers use settlement agreements to formalise termination terms, provide clear payments, and resolve potential claims mutually.
A settlement agreement is a legally binding contract under which an employee waives the right to bring employment tribunal claims in exchange for agreed terms.
For a settlement agreement to be legally valid in England and Wales, the employee must receive independent legal advice from an authorised professional, such as a solicitor.
Employers routinely pay a contribution towards the employee's legal fees for receiving this mandatory independent advice.
Common questions
What redundancy pay am I entitled to if I lose my job?
Employees with at least two years of continuous service qualify for statutory redundancy pay. This is calculated as half a week's pay for each year worked under age 22, one week's pay for each year worked between ages 22 and 40, and one and a half weeks' pay for each year worked aged 41 and older, subject to statutory limits.
How can I get paid if Headlam is in administration?
If the business cannot meet its redundancy and notice pay obligations due to administration, eligible employees can apply to the UK government's Insolvency Service to receive statutory redundancy pay, accrued holiday pay, and statutory notice pay.
What collective consultation rules apply to these cuts?
If 20 to 99 redundancies are proposed at a single site within a 90-day period, consultation with employee representatives must begin at least 30 days before dismissals occur. If 100 or more redundancies are proposed, the period is at least 45 days.
How Deen & Co helps
Deen & Co Solicitors advises UK employees dealing with redundancies, administration, and corporate restructuring. Our employment solicitors review settlement agreements, explain statutory redundancy and notice rights, and provide clear guidance through the consultation process.
Read more about settlement agreement advice or work out your statutory redundancy pay.
If your role is in London, our settlement agreement solicitors London can review the package before you sign.
Sources
- More jobs cut at flooring firm Headlam after administration - Belfast Telegraph — Belfast Telegraph (7 October 2026)
- More jobs cut at flooring firm Headlam after administration - Yahoo News UK — Yahoo News UK (7 October 2026)
- More jobs cut at flooring firm Headlam after administration - Express and Star — Express and Star (7 October 2026)
Last updated 7 October 2026. This page summarises publicly reported information and is general guidance, not legal advice on your own situation.
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