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Entitlement to redundancy pay  (Crown Copyright)

If you are made redundant you may be entitled to redundancy pay if you have worked for your employer for at least two years. The amount you are entitled to will be based on your weekly pay, age and continuous employment with your employer.

Redundancy pay basics
You have the right to a redundancy payment if you are an employee who has worked continuously for your employer for at least two years and you are being made redundant.

Redundancy pay is also due when a fixed-term contract of two years or more expires and is not renewed because of redundancy.

You do not have to claim redundancy pay from your employer, they should automatically pay it to you. If your employer does not give you redundancy pay when you are entitled to it you should write to them asking for payment. If your employer still refuses to pay you or cannot make the payment you could make an appeal to an Employment Tribunal.

Alternative work
You are not entitled to a redundancy payment if your employer offers to keep you on, or offers you suitable alternative work which you refuse without good reason. If you leave your job for a new one before the end of your notice period, your payment might also be affected.

Calculating your redundancy pay
How much redundancy pay you get depends on your wage, how long you have worked at the company and your age. If you are trying to work out your redundancy payment, find out how it is calculated .

Contractual redundancy pay
You should check your employment contract for how much redundancy pay you are entitled to. Some employers offer employees more generous packages than the statutory minimums as part of their employment benefits.
Your employer cannot offer you less than the statutory minimum through your employment contract.

Statutory redundancy pay
The calculation for your statutory redundancy pay is based on:
• how long you have been continuously employed
• your age
• your weekly pay, up to a certain limit (£380 current maximum)
You will get:
• 0.5 week’s pay for each full year of service where your age was under 22
• 1 week’s pay for each full year of service where your age was 22 or above, but under 41
• 1.5 week’s pay for each full year of service where your age was 41 or above
For example: If you are 45, your weekly pay is £380 per week and you have completed 15 years’ full service, you will receive £6,460 statutory redundancy pay.
Step one: 1.5 weeks x 4 years full service when you were 41 or above = 6 weeks
Step two: 1 week x 11 years service when you were under 41 = 11 weeks
Step three: 6 weeks + 11 weeks = 17 weeks x £380 (max weekly wage) = £6,460 statutory redundancy pay