Redundancy

Has your employer made you redundant? As an employee you may be entitled to a notice period, redundancy payment or time off to find a new job.  

In order to be entitled to the statutory redundancy payment you must be an employee with at least two years of continuous service with the employer. 

Currently the redundancy payment is calculated as: 

• Half a week’s pay for each completed year of employment if you were under the age of 22 
• A week’s pay for each completed year of employment if you were 22 or older and under 41  
• A week and a half’s pay for each completed year of employment if you were 41 or older. 

Since 6 April 2023, a week’s pay is capped at £643 and the maximum statutory redundancy payment you can claim is £19,290. The maximum amount of years you can claim your redundancy payment for is 20 years. Other payments may form part of a termination payment, such as holiday pay or wages. The statutory redundancy pay element of any termination payment is not taxable. 

There are of exceptions to the above: dock workers, members of the armed services, etc. If you have been made redundant, check that your profession does not fall into one of these categories. 

If your employer has failed to pay any amount due to you or has failed to follow the correct redundancy procedure, then our specialist employment team can help.