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

4.78 Average

143 Reviews

Liz P

An excellent professional service was provided by Chris Hadrill and Mel Chin. Efficient and trustworthy - would highly recommend this company.

Posted 6 days ago

Anonymous

Redmans Solicitors were great. They were able to advice me quickly and efficiently! I would recommend them, as a good solicitors to use.

Posted 6 days ago

Anonymous

Extremely efficient. Mel made a difficult situation bearable and gave good clear guidance thoughout.

Posted 1 week ago

Anonymous

Thanks Chris and Sacha I was reassured throughout the process and a happy outcome

Posted 1 week ago

Edward F

Good and clear employment advice

Posted 1 week ago

Richard O

Chris at Redmans is my go-to legal expert when it comes to employee-related matters. His depth of knowledge, experience and considered approach to problems and their solutions is highly valuable. I cannot recommend Redmans highly enough.

Posted 3 weeks ago

Rory Y

They provide me with timely and clear advice!

Posted 3 weeks ago

Steven C

Redmans handled my settlement with my employer quickly, decisively and to a standard that I was very happy with. I would in similar circumstances contract them again

Posted 3 weeks ago

Deepthi K

Transparent. Clear communication. Prompt reply’s. Saves lot of time. Very satisfied.

Posted 3 weeks ago

Anonymous

Chris and Sacha did a fantastic job and negotiated a significant better settlement agreement

Posted 3 weeks ago

Dino D

I did get a very swift and god service from Redmans

Posted 3 weeks ago

Stephanie H

Clear, prompt, effective support from Chris which has been very much appreciated. Thank you again.

Posted 1 month ago

Anonymous

I would highly recommend Redmans Solicitors, the team were very friendly and my case was dealt with professionally and efficiently. Thank you!

Posted 1 month ago

Shane M

Very professional, welcome advice at a crucial time. Always available and reasonable cost.

Posted 1 month ago

Anonymous

My case was relatively straight-forward. But even so, working with Redmans was easy, quick, professional & clear. Many thanks

Posted 1 month ago

Anonymous

The team were very helpful and answered all my questions regarding my redundancy. Initially I had a call with one of the representatives who escalated my request to a suitable employment solicitor. We arranged a call to discuss the settlement and she helped answer all my questions. We then mainly contacted through email which helped resolve the settlement quickly and convently. Thanks for all the help.

Posted 1 month ago

Djaouida T

You have good communication.

Posted 2 months ago

Anonymous

Fast and professional. A highly recommended company for employment related issues.

Posted 2 months ago

Anonymous

Very professional service.

Posted 2 months ago

Brittany

I was very grateful for Redmans to treat my case with respect and discretion. At the time, I was very new to London and it was meaningful to have someone on my side and win the case for me. Without any doubt, I would definitely recommend Redmans Solicitors to anyone who is in need of it.

Posted 9 months ago

Jake L

Chris is very professional and calm. Very attentive and patient, been a positive experience having Chris represent me, and would recommend him.

Posted 11 months ago