Redundancy: your rights

  1. Overview
  2. Being selected for redundancy
  3. Statutory redundancy pay and enhanced redundancy payments
  4. Your notice period
  5. Your consultation period
  6. Redundancy and suitable alternative employment

3. Redundancy pay

Statutory redundancy pay

If you’re an employee and have been working for your current employer continuously for two years or more and have been dismissed for the reason of redundancy then you may be entitled to receive statutory redundancy pay.

How to calculate your statutory redundancy pay

The value of your statutory redundancy pay is calculated by using your age, your gross weekly wage (subject to a cap of £464 per week), and the number of years that you have continuously worked for your employer.

Use our helpful redundancy pay calculator to calculate your statutory redundancy pay

You’ll receive:

  • Half a week’s pay for each full year that you have worked when you were under 22
  • 1 week’s pay for each full year you have worked between the ages of 22 and 41
  • 1 and a half week’s pay for each full year you worked when you were 41 or older

Exceptions

You may not be entitled to receive statutory redundancy pay if any of the following apply:

  1. You are not an employee
  2. You haven’t worked for your employer for two years or more continuously
  3. You haven’t been dismissed for redundancy
  4. Your employer decides to not make you redundant and keeps you on
  5. Your employer offers you suitable alternative work which you unreasonably refuse to take

Further, you will not be entitled to statutory redundancy pay if you fall into any of the following categories of workers:

  • Merchant seaman, former registered dock workers or share fishermen
  • Crown servants, members of the armed forces or police services
  • Apprentices who are not employees by the end of their training
  • A domestic servant who is a member of the employer’s immediate family

Enhanced redundancy pay

You may be entitled to receive an enhanced redundancy payment from your employer, even if you are not entitled to be paid statutory redundancy pay.

An enhanced redundancy payment is normally a contractual entitlement which you are entitled to receive under the terms of your contract of employment or because your employer has a custom or practice of paying such a payment to employees that it is making redundant. The value of an enhanced redundancy payment will generally be at the discretion of your employer, although you may be able to challenge the amount you are being paid if it isn’t consistent with what your employer normally pays in such circumstances.

Short-term and temporary lay-offs

You can claim statutory redundancy pay if you are otherwise eligible and have been temporarily laid off (without pay or for less than a week’s normal pay) for either:

  • More than 4 weeks in a row; or
  • More than 6 non-consecutive weeks in a 13 week period

You must write to your employer within 4 weeks of your last non-working day in the 4 or 6 week period to inform them that you intend to claim statutory redundancy pay.

Previous: Being selected for redundancy

Next: Your notice period

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Contact us

Please feel free to discuss your own position and concerns. Contact your nearest office on:

T: 020 3397 3603
E: enquiries@redmans.co.uk
W: www.redmans.co.uk

Testimonials

4.62 Average

39 Reviews

Katelyn

The solicitor communicated well with me and made sure I understood everything. He did everything needed for my settlement agreement and tried to get the wording changed in my favour too.

Posted 19 hours ago

Anonymous

Redmans provided excellent services

Posted 20 hours ago

Sibel U

Excellent service

Posted 22 hours ago

Peter S

I was very happy with the level of advise I received from Caroline Lewis, and a very professional service fron Chris, The advice given really helped me and I was comfortable to sign the settlement agreement following my redundancy. I would be more than happy to recommend your services to others.

Posted 23 hours ago

Derek S

I very much appreciated the help provided by Redmans in the settlement agreement agreed with my former employer.

Posted 1 day ago

Waseem M

It was the first ime I used Redmans Solicitors and to be honest, thety were amazing. Rana Tandon and Chris Hadrill were out of this world. They made the process as simply and smooth as can be. Thank you so much for all your support over the last week.

Posted 2 weeks ago

Anonymous

Worked very quickly considering right deadlines - and gave great advice

Posted 2 weeks ago

Anonymous

Redmans provided me with excellent advice at a very stressful time. The calm, confident and extremely professional manner in which my solicitor handled my case made the issue much easier to deal with and I was very impressed with the level of service I received.

Posted 2 weeks ago

Anonymous

Immediate response to my initial enquiry. Very clear throughout the whole process and thorough and great communication which worked really well during quite a stressful time. Chris Hadrill was extremely helpful and made me feel at ease.

Posted 3 months ago

Nick D

I received a very professional service from Chris. The advice given really helped to leave me comfortable to sign the settlement agreement following my redundancy. Would be happy to recommend your services to others.

Posted 3 months ago

Anonymous

Excellent service from initial contact to deliverables.

Posted 4 months ago

Virginia K

Yes, Chris Hadrill answered all my questions and I feel more confident with my current situation

Posted 4 months ago

Anonymous

Chris Hadrill was referred to me my a friend of mine. I found the service to be efficient, quick and like Chris's direct approach to my work. Well done and thank you Chris!

Posted 4 months ago

Andy W

Very prompt & structured service that helped put my mind at rest at a difficult time

Posted 4 months ago

Anonymous

I have found Redmans to be very helpful, diligant and thoroughly professional when dealing with them, plus they gone that extra mile for me !

Posted 4 months ago

Anonymous

Thank you to Chris Hadrill at Redmans for his assistance in settling my case. I contacted him at the very last minute and he was happy to help me and managed to get everything done on time and in a very professional manner. I will definitely be happy to work with him again .

Posted 4 months ago

Redman's provided excellent legal employment advice for me during a difficult time in my employment. Chris was my lawyer, super efficient, quick, reliable and clearly very experienced in the matter. Could not ask for a better law firm to deal with your query if you are in need of some help. Would definitely use them again in the future. Highly recommending Chris.

Posted 8 months ago

Steven

Chris Hadrill was very professional and responsive. I would highly recommend him

Posted 8 months ago

Dinah

Very Efficient, with very quick email reply’s. I had a matter that needed resolving within a very short space of time and Redmans Solicitors were great with dealing with my matter quickly.

Posted 8 months ago

Ankar

At Redmans the solicitor that was dealing with me was Chris. He dealt with my situation smoothly with clear guidance and explanation

Posted 8 months ago

Anonymous

Clear, concise advice and guidance delivered by an experienced and very capable solicitor, within the timelines required

Posted 9 months ago