Charlotte HughesUK oil refineries are closing at an alarming rate, leaving thousands of workers facing redundancy with little warning. Three major facilities have shut in the past 18 months — Grangemouth in April 2025, ExxonMobil's Mossmorran ethylene plant in February 2026, and Lindsey Refinery in Lincolnshire — resulting in over 1,000 job losses and a 14% reduction in the UK's total refining capacity.
If you work in the energy sector, or know someone who does, understanding your redundancy rights is essential.
What Is Driving UK Refinery Closures?
The wave of closures is being driven by a combination of structural and policy pressures. UK refineries pay up to £400 million annually in carbon taxes, according to Fuels Industry UK, making them increasingly uncompetitive against international rivals who face fewer emissions costs.
At Grangemouth — which once supplied 97% of Scotland's aviation fuel — owner Petroineos cited dramatically reduced demand for key fuels driven by the electrification of vehicles. ExxonMobil's Fife Ethylene Plant was reportedly losing approximately £1 million per week before it permanently closed on 2 February 2026, two weeks ahead of schedule.
The Lindsey Refinery in Lincolnshire was acquired by Phillips 66 in January 2026, with its key facilities integrated into the Humber Refinery rather than being restarted as a standalone site.
The UK now has just four operational refineries, and the government is drawing up a strategy to protect them from the same fate.
Your Redundancy Rights: A Legal Overview
If your employer announces a site closure or large-scale redundancy programme, UK employment law provides specific protections. Here is what you are entitled to.
Eligibility for Statutory Redundancy Pay
To qualify for statutory redundancy pay, you must have at least two years of continuous service with the same employer. If you have been employed for one month or more, you are also entitled to a minimum statutory notice period.
How Statutory Redundancy Pay Is Calculated
Redundancy pay is calculated based on your age, length of service, and weekly pay (capped at £719 per week as of April 2025):
- Under 22 years old: 0.5 weeks' pay per year of service
- 22 to 40 years old: 1 week's pay per year of service
- 41 years old or over: 1.5 weeks' pay per year of service
The maximum statutory redundancy payment is currently £21,570. The first £30,000 of any redundancy package — including statutory, enhanced, and ex-gratia payments — is tax-free under UK law.
Notice Periods You Are Owed
Your employer must provide a minimum statutory notice period based on your length of service:
- 1 to 2 years: At least one week's notice
- 2 to 12 years: One week per full year of service (e.g., six years = six weeks)
- 12 or more years: A statutory maximum of 12 weeks' notice
Reports from the Lindsey Refinery closure raised serious concerns: some workers with over 25 years of service were reportedly dismissed without proper compensation, and technical staff received less than one week's notice. If this happens to you, it may constitute a breach of contract.
Your Right to Time Off During Redundancy
Workers with at least two years of service have a statutory right to take reasonable time off during their notice period — up to 40% of a week's pay — to search for new employment or pursue training. This time off must be taken during working hours.
What Employers Must Do: The Consultation Process
UK employment law requires employers to follow a fair redundancy process. This includes:
- Notifying you as early as possible — you should not be the last to know
- Using a fair selection process — the criteria must be objective and documented
- Providing a genuine consultation period — this means actually considering alternatives, not just informing you of a decision already made
- Offering the statutory minimum redundancy pay — plus any enhanced contractual entitlements in your employment contract
If your employer fails to follow this process, you may have grounds to challenge the redundancy at an employment tribunal.
What to Do If You Are Made Redundant
Taking the right steps early can make a significant difference to your financial and legal position.
First, document your employment history. Note your start date, any contractual changes, and your current salary. This ensures your redundancy calculation is accurate.
Second, check your employment contract. Many energy sector workers have enhanced redundancy terms above the statutory minimum. Your contract may entitle you to a higher payment.
Third, contact ACAS. The Advisory, Conciliation and Arbitration Service (www.acas.org.uk) provides free, impartial advice on redundancy rights and can help you understand whether your employer has followed the correct process.
Fourth, speak to your union. Workers at Grangemouth and Mossmorran received support from Unite the Union during their consultation periods. If you are a union member, involve your representative immediately.
Fifth, explore retraining opportunities. Following the Grangemouth closure, the Scottish Government partnered with Forth Valley College on skills development. Government-funded Project Willow committed £25 million to support workers in the region. Check whether similar support is available in your area via gov.uk.
The Bigger Picture: More Closures May Follow
The remaining four UK refineries are under similar pressure. According to parliamentary research briefings, the carbon cost burden is placing all remaining facilities at commercial risk without urgent policy intervention. A Carbon Border Adjustment Mechanism — which would impose tariffs on imported goods from countries with lower carbon costs — has been urged by industry bodies but has not yet been implemented.
For workers in the energy sector, understanding your legal rights now — before any announcement is made — is the best form of preparation. An employment lawyer can review your contract, identify any enhanced entitlements, and advise you on the consultation process should your employer begin restructuring.
ExpertZoom connects you with qualified employment lawyers and legal experts who specialise in redundancy and employment rights across the UK. If you are concerned about job security or have already received a redundancy notice, speaking with an expert today could protect your financial future.
Legal Disclaimer: This article provides general information only and does not constitute legal advice. Individual circumstances vary. If you have received a redundancy notice, consult a qualified employment lawyer before taking action.
For additional context on recent energy sector developments affecting UK workers, see our coverage of the Jaguar Land Rover Crisis and UK Worker Rights.
