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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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

4.76 Average

103 Reviews

Rob O

Very prompt response and I could not fault the service. My solicitor listened carefully to the details of my case and I felt very confident in the advice I was offered. All emails and work done on my behalf with my former employer was of the highest standard and Redmans helped take a lot of the stress out of the situation for me.

Posted 1 day ago

Mike H

Very professional, friendly, proactive. I would highly recommend Redmans.

Posted 1 day ago

Anonymous

Fantastic and quick service!

Posted 1 day ago

Anonymous

I was very satisfied with Redmans' service. Clear, sensible advice and the bill was in line with their estimate. I would recommend them.

Posted 1 day ago

Eugene A

Excellent communication and guidance provided on the redundancy settlement process. Process was concluded quickly, very satisfied with service.

Posted 1 day ago

Harold d

Great personlised service and quick communication. Solicitor helps greatly in understanding the options and advising best course of action.

Posted 1 day ago

Trish B

Professional and efficient. A pleasure to deal with.

Posted 2 days ago

Omi H

Excellent communication. A tactical negotiator to get the best package for the client. Highly recommended.

Posted 2 days ago

Nicholas S

Very prompt and efficient. Excellent advice.

Posted 2 days ago

Anonymous

Very helpful and always available to help! It was my first time to deal with any solicitors, but I felt very supported until the end!! Well done!! and great Job!!

Posted 1 week ago

Mohamed F

Excellent and professional solicitors, highly recommended

Posted 4 weeks ago

Anonymous

Redmans Solicitors provided a professional and prompt service in dealing with my settlement agreement. They used their experience to negotiate a better deal for which I am grateful for. I highly recommend their services.

Posted 1 month ago

Cheryl R

Very efficient and friendly lawyers. I have used Redmans twice now and Chris Hadrill has been amazing to work with. Would highly recommend Redmans.

Posted 1 month ago

Anonymous

I found Redmans Solicitors to be extremely professional, dealing with my questions and concerns quickly and in detail. I would have no hesitation in recommending Redmans Solicitors to anyone.

Posted 1 month ago

Anonymous

I requested Redmans services on a redundancy case. Both Chris and Rana were great, thoughtful, very professional and responded quickly. They were very clear throughout the entire process, regarding the process and my options and I couldn't feel I had better legal advice for my case. Overall excellent service and I would certainly recommend and use their services again.

Posted 1 month ago

Anonymous

Responsive, patient, thorough and personable - an excellent service.

Posted 1 month ago

Anonymous

The team at Redmans, Chris Hadrill and Sacha Barrett were always very helpful and had expert knowledge to assist me during my employment law matter, I would not hesitate to recommend them to all!

Posted 1 month ago

Arun T

Chris was punctual, attentive and accurate. He answered my questions with clarity and avoided dubiosity. I would recommend him to anyone seeking legal advice within his remit.

Posted 1 month ago

Yulian Z

Great service

Posted 1 month ago

Anonymous

Excellent, professional service and a speedy resolution. Many thanks

Posted 1 month ago

Taral P

Sacha and Chris were both very helpful in closing out my matter. Sacha was very clear in helping me understanding the documents I needed reviewing, providing a professional service throughout.

Posted 1 month ago