Redundancy Pay 

If your employer is making you redundant, you may be entitled to redundancy pay. The law sets out a minimum amount of redundancy pay, although some employers may offer a higher amount. 
 
Redundancy pay is paid by your employer. 
 

Will I receive redundancy pay? 

If your status is an ‘employee’ and you have been at your current workplace for 2 years or more continuously, you will be entitled to statutory redundancy pay. You are an employee if you work under an employment contract. Contact us to find out more about your status or visit Acas.  
 
Temporary workers are entitled to redundancy pay if they have a contract of more than 2 years, or who have worked continuously for their employer on short term contracts for 2 years or more. 
 
You will not receive redundancy pay if you have turned down an offer of suitable alternative employment from your employer. 
 

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How much redundancy pay will I receive? 

Statutory redundancy pay is worked out based on your current weekly pay, your age, and your length of service for your employer. 
 
If you are entitled to redundancy pay you will receive: 
Half of your weekly pay for each year of service when you were under the age of 22 
One week of pay for each year you were aged between 22 and 41 
One and a half week’s pay for each year of service over the age of 41 
 
If you were made redundant after 6th April 2019, the maximum weekly pay you can receive is £525, and the maximum statutory pay you can receive is £15,750. The length of service that can be taken into account is capped at 20 years. 
 
When calculating your redundancy pay, the amount is based on the 20 years directly preceding your redundancy. 
 
Some employers may offer contractual or enhanced redundancy pay. If they do, you will find the details in your contract of employment. Your employer cannot give you less than the statutory redundancy pay. 

For example 

You started working for your employer aged 20. You have worked there for 25 years and are now aged 45. You receive £300 per week.  
 
Your redundancy would be calculated as: 
 
The length of service to be considered is capped at 20 years, so the first five years you worked are discounted. 
4 years over the age of 41 = 4 x 1.5 weeks’ pay = 6 weeks' pay 
16 years aged 25-41 = 16 x 1 weeks’ pay = 16 weeks' pay 
6 weeks + 16 weeks = 22 weeks' pay 
22 x £300 = £6,600 
You will not pay tax on redundancy pay up to £30,000. 

What if I have not been given the correct pay? 

If you do not believe you have been given the correct amount of redundancy pay, you have 6 months from the date of your redundancy, minus a day, to make a claim to the tribunal. 

Get in touch 

Do you have a legal matter you'd like to discuss with us? Whether you're an employer or employee we'd love to hear from you. Get in touch using the details below or use the form here and a member of our team will be in touch to discuss your enquiry. 
Phone: 0121 452 5130 
Address: Spencer Shaw Solicitors Limited 
Vancouver House, 111 Hagley Road, Edgbaston, Birmingham B16 8LB 
Opening hours:  
Monday - Friday 9:00AM - 5:00PM 
Saturday, Sunday & Bank Holidays - Closed 
 
We take your privacy seriously and will only use the information you provide on this contact form to deal with your enquiry. Please see our Client Privacy Policy for more detail. 
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