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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    I'd highly recommend Redmans Solicitors. Mel was very helpful and assisted me throughout my case.

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    Anonymous

    I have been very pleased with the support I got from Redmans Solicitors on my case with my employer. Caroline has always helped me to put things in perspective and showed me different scenarios ultimately to help me taking the right decision. She was very professional and always available when I needed, and at the same time also emphatic which I found also really important to establish a strong relationship. Will definitely recommend!

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    Anonymous

    Prompt and efficient response to my enquiries. Excellent negotiating skills with my employer which considerably improved the terms of my settlement agreement.

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    Posted 1 week ago

    James G

    Very professional, knowledgeable and kept me informed at every stage of my case. I would highly recommend Redmans.

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    I had Mel Chin helping me with a settlement and she was very professional and reliable throughout my case. Mel provided me with a good understanding of what was happening and gave suggestions on routes I could take. My case was resolved and closed promptly although the opposing side were very difficult to deal with. A very big thank you to Mel and Chris.

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    My first ever experience needing the services of a solicitor; cannot speak highly enough of Mel and Chris’s personable, reassuring and straight to the point advice in dealing with my settlement agreement. They put me at ease during an extremely stressful time. I am equally as happy with the outcome, as l am their professional services.

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    William A

    Second time I have had to use Redmans. They did not disappoint. They are fast , efficient and friendly. I have already recommended them to friends and colleagues. I hope I dont have to use them again but if I have to , they are the solicitors for me.

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    Fleeta C

    Great service with tantastic communications. The solicitor responsible is extremely knowledgeable and was responsible for bringing a timely and desired solution.

    Posted 4 weeks ago

    Veronica M

    Extremely helpful, starting from a request for advice at very short notice, to dedicating time for me to understand and review all documents thoroughly.

    Posted 4 weeks ago

    Sophie R

    Very efficient and professional service. Chris was very empathetic, knowledgeable and personable. Highly recommended.

    Posted 1 month ago

    Melanie M

    Very happy with the detailed advice provided from Redmans. They also helped me to secure a higher settlement than originally offered by my employer and were extremely diligent. I first spoke with Chris at relatively short notice and then Sacha dealt with my case. Would definitely recommend and use again in the future if needed.

    Posted 1 month ago

    Anonymous

    Redmans helped me with a work related issue, which was resolved quickly and professionally. I would definitely recommend this company.

    Posted 1 month ago

    James F

    Great people, really friendly and professional helped with everything that I needed.

    Posted 1 month ago

    Anusha S

    My case was handled by Sacha who was very thorough and helped me to achieve a good outcome with my employer. Sacha was very personal, professional and helped me during quite a stressful time, so I am hugely grateful to her and to Redmans. This was my first time engaging with a law firm so I wasn't sure what to expect but I can definitely say that it was a good experience overall and I ended up better off due to having the help of an experienced and proactive solicitor on my side.

    Posted 1 month ago

    Diane P

    So grateful that I contacted Redmans to deal with my Redundancy Agreement. Everything from the initial call to the completion of the matter was professional, efficient and effective. I was listened to, had everything explained simply and kept informed of every step. I received super advice and the costs were very competitive. I would highly recommend them to anyone seeking similar help. First class service - thank you

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