Have you recently been made redundant and unsure how much redundancy pay you are entitled to?
If you have worked for your employer for more than 2 years, then you are entitled to government statutory pay.
At a minimum, you are entitled to:
- 0.5 week’s pay for each full year worked when you’re under 22
- 1 week’s pay for each full year worked when you’re between 22 and 41
- 1.5 week’s pay for each full year worked when you’re 41 or older
Your pay is capped at £538 (£560 in Northern Ireland) per week and the length of service is capped at 20 years. Your length of service is measure from your first working day to your last working day, including notice periods.
You may get more redundancy pay if your employer has a redundancy scheme in place. And, redundancy pay up to £30,000 in tax-free.
Find out how much statutory redundancy pay you are entitled to via the Government Redundancy Pay Calculator.
Please note that redundancy payments are based on age, weekly pay and number of years in the job.
How do you know if you qualify for statutory redundancy pay?
You’ll get statutory redundancy pay if you:
- have been employed by your employer for 2 years continuously
- have lost your job because there was a genuine need to make redundancies in your workplace
- are a particular kind of worker called an ‘employee’ – this includes part-time employees. You can read more on what Is classified as an employee here.
If you’re on a fixed-term contract, you will be entitled to statutory redundancy pay if your employer doesn’t renew your fixed-term contract because the job doesn’t exist anymore and you had either:
- a fixed-term contract for 2 years or more
- shorter contracts that followed on from each other and added up to 2 years or more
You won’t get statutory redundancy pay if you:
- have worked in your job less than 2 years
- are self employed
- are a crown servant, police officer, in the armed forces, parliamentary staff or holder of public office
- are domestic staff working for your immediate family
- are an employee of a foreign government
- are a share fisherperson
But this doesn’t mean you can’t get redundancy pay. You may be able to get some redundancy pay if your company offers a contractual redundancy pay. Please check your contract to see what it states on redundancy pay.
You could also lose your right to statutory redundancy pay. This can be done by:
- turning down a suitable alternative job your employer offered you without good reason
- want to leave before the job has ended (including your notice period) – this can include starting another job before your contract period has ended
- or, are fired for gross misconduct before the job finishes
If you’ve recently been made redundant whilst on furlough, find out more about your redundancy rights here.