I've recently been made redundant, what am I entitled to?

25 July 2013

Worthingtons Solicitors advise on redundancy payment entitlements and the statutory minimum your Employer is required to pay.

Redundancy is a potentially fair reason for an employer to terminate a worker’s employment.

Where your employer has a genuine redundancy situation within the workplace and a fair and objective selection criteria has been applied, it is important that you are aware of your right to a redundancy payment and how this payment is calculated.

An employee qualifies for statutory redundancy pay if he/she has continuously been employed by their employer for at least 2 years. Statutory redundancy pay is based on a calculation using your age and length of service. The total amount you should be paid for redundancy will be based on how long you have been continuously employed, your age and your weekly pay (up to a certain limit, current maximum £450) An employee this therefore entitled to: 0.5 week's pay for each full year of service where your age was under 22 one week's pay for each full year of service where your age was 22 or above, but under 41 and 1.5 week's pay for each full year of service where your age was 41 or above.

The maximum number of years that can be taken into account is 20 years, at present the maximum award is £13,500.

Often employers will offer employees more generous packages to the statutory entitlement and therefore you should check your employment contract to ascertain if it provides for an increased payment. In the absence of any provision in this regard it is likely that your employer will offer you the statutory minimum however please be aware that your employer cannot offer you less than the statutory minimum through your employment contract. Please note that redundancy payments under £30,000 are not taxable.

Please submit any queries relating to this article in the enquiry form below and a member of our Employment law team will contact you directly.

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