A redundancy payment is compensation because your job has disappeared. If you are made redundant you may be entitled to statutory redundancy pay if you have worked for your employer for at least 2 years. The amount you are entitled to will be based on your weekly pay, age and continuous employment with your employer.
You have the right to a statutory redundancy payment if you are an employee who has worked continuously for your employer for at least 2 years and you are being made redundant.
Statutory redundancy pay is also due when a fixed-term contract of 2 years or more expires and is not renewed because of redundancy.
You do not have to claim statutory redundancy pay from your employer, they should automatically pay it to you.
How much statutory redundancy pay you will receive depends on:
- how long you have worked for your employer
- your age
- your pay
Calculating your redundancy pay
You have the right to:
- half a week’s pay for each complete year of employment when you were below the age of 22
- a full week’s pay for each complete year of employment when you were between the age of 22 and 40
- 1 and a half week’s pay for each complete year of employment when you were above the age of 41.
You can’t be given statutory redundancy pay for more than 20 years’ employment.
Employment is counted up to the date your notice runs out. If you haven’t been given any notice, it is the date on which your notice would have run out if you had been given it. This will depend on what notice you’re entitled to by law.
Remember that you might also qualify for pay instead of notice (pay in lieu of notice), in addition to your redundancy payment.
The Statutory Redundancy Pay is reviewed each February.
The rate with effect from 6th April 2024 is £700 per week or your contracted weekly pay if lower.