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
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Testimonials

4.76 Average

199 Reviews

Paul T

Excellent, quick and informative. Chris was a real star and gave me confidence during the uncertainty if a redundancy settlement.

Posted 6 hours ago

Marina E

Felt in very capable hands was listened to and given excellent advice. Would not hesitate to recomend and use again if needed.

Posted 7 hours ago

Rosa B

Fabulous service all round.

Posted 1 week ago

Anonymous

Redmans were quick to respond to my enquiry and dealt with my case professionally and personably. I received sound advice and was put at ease by Chris Hadrill, Partner.

Posted 1 week ago

Alkhas K

Excellent service.

Posted 2 weeks ago

Mathias G

Contacted them regarding my end of employment agreement. Chris Hadrill dealt with it and was done and handed back to employer same day more than happy with there service.

Posted 1 month ago

Mark W

Most professional from start to finish offering very a personal service. Most impressive and quick when dealing with the matters in hand.

Posted 2 months ago

Anonymous

Posted 2 months ago

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I am very glad I came across Redmans Solicitors. Fantastic service!

Posted 2 months ago

Anonymous

Fantastic communication, always happy to answer queries, highly recommended.

Posted 2 months ago

Wavenie B

They were very straight to the point, friendly and understanding people. I felt they had my best interest. They were easy to get hold of, replies were almost instant. 5/5 for customer service

Posted 2 months ago

Christina P

Caroline was fantastic to work with - extremely knowledgeable, supportive, thorough and honest. I definitely recommend Redmans!

Posted 2 months ago

Anonymous

Very well done and fast support. Professional and reliable. Highly recommended!

Posted 2 months ago

Helene L

They were very knowledgable in the respected area in terms of change in law/regulations that is crucial for the clients who are seeking for legal arvice.

Posted 2 months ago

Sara R

Very helpful and wonderful advice

Posted 2 months ago

Marie D

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Posted 2 months ago

Philip H

Chris Hadrill handled my case with great accuracy and efficiency. Basically made it feel like a process without hassle. Doesn't try to expand the case just for greater fees. I value his professional advice highly.

Posted 2 months ago

Michael W

Professional, responsive and supportive - excellent service!

Posted 2 months ago

Anonymous

I was really happy with the service provided. I had to chase a couple of time but despite that, my matter was dealt with in a timely manor. I would use again in the future

Posted 2 months ago

Lee M

Superb service and always available

Posted 2 months ago

Jonathan S

I was very grateful for the support I received from Redmans during a very difficult period. Rana Tandon really got under the skin of my issue and understood what was important to me, steering me carefully and sensibly to an outcome I was very happy with. I would recommend Redmans to anyone else without any reservations whatsoever.

Posted 2 months ago