Royal Mail Redundancy Programme: What It Means for Employees

What has been announced

• Royal Mail has announced plans to cut a reported 2,500 head office and other roles by the end of 2027.
• The planned job reductions are part of an ongoing transformation programme across the business.
• The company has cited a reported 70 percent decline in letter volumes alongside changes in customer demand as key factors behind the restructuring.
• Specific site impacts have not been stated in the announcement.

About the company

Royal Mail is a major UK postal service and logistics provider.

The business is currently undergoing structural changes in response to shifting consumer habits and long-term declines in traditional letter post.

What happens next

Under UK employment law, when an employer proposes to dismiss 100 or more employees as redundant within a 90-day period, collective consultation must last at least 45 days before the first dismissals take effect. Where between 20 and 99 redundancies are proposed, the minimum period is 30 days.

Royal Mail must consult with recognised trade unions or elected employee representatives to explore options for avoiding dismissals, reducing numbers, and mitigating consequences.

Individual consultation meetings must also take place to discuss selection criteria, personal circumstances, and any alternative employment vacancies.

Employees who have at least two continuous years of service are legally entitled to statutory redundancy pay, calculated on age, length of service, and weekly pay subject to statutory caps.

Voluntary or compulsory redundancy

Employers often invite applications for voluntary redundancy to minimise the need for compulsory job losses.

Voluntary redundancy is agreed mutually, but the employer retains the discretion to accept or reject applications based on business needs.

If insufficient numbers take voluntary redundancy, compulsory redundancies may follow using fair and objective selection criteria.

In both voluntary and compulsory situations, qualifying employees retain their statutory redundancy rights and notice entitlements.

Your settlement agreement

Royal Mail may offer settlement agreements to departing staff, particularly where terms exceed statutory minimums.

A settlement agreement is a legally binding contract that resolves employment claims in exchange for agreed severance terms.

Under England and Wales law, a settlement agreement is only valid if the employee receives independent legal advice on the terms and their effect on the ability to pursue employment claims.

Employers usually provide a financial contribution toward the employee's legal fees for obtaining independent advice.

Common questions

How Deen & Co helps

Deen & Co Solicitors provides independent legal advice to employees facing redundancy and restructuring. Our employment solicitors advise on collective and individual consultation processes, assess redundancy packages, and review settlement agreements to ensure your legal rights are fully protected.

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.