Your rights during redundancy

How much redundancy pay you get

You have the right to redundancy pay if you're an employee and have worked for your employer for more than 2 years.

If you're not sure if you're classed as an employee, it's a good idea to talk to your employer and check your employment status.

Working out redundancy pay

How much redundancy pay you get depends on:

  • your age
  • how long you've worked for your employer

You might get more than the minimum amount the law says you should get ('statutory'), if it's in your contract.

Up to £30,000 of redundancy pay is tax free.

You may not be eligible for statutory redundancy pay if your employer offers you a suitable alternative job and you turn it down.

Redundancy pay is based on:

  • your weekly pay before tax (gross pay)
  • the years you've worked for your employer (‘continuous employment’)
  • your age

Weekly pay should also include:

  • regular overtime, if your contract says you must get paid for it
  • any bonuses or commission

Find out how to work out average pay for bonuses and commission on GOV.UK.

If you're aged 17 to 21

Your employer must give you half a week's pay for each full year you've worked.

If you're aged 22 to 40

Your employer must give you:

  • 1 week's pay for each full year you worked from age 22
  • half a week's pay for each full year you worked before that

If you're aged 41 or over

Your employer must give you:

  • 1.5 weeks' pay for each full year you worked from age 41
  • 1 week's pay for each full year you worked when you were between 22 and 40
  • half a week's pay for each year you worked when you were between 17 and 21

Your employer must tell you in writing how your redundancy pay has been worked out.

Use the redundancy pay calculator on GOV.UK. You'll need to know your weekly pay (before tax and other deductions) to use the calculator.

Limits on redundancy pay

There are limits to how much redundancy pay you can get. You can only get it for up to 20 years of work.

This means, for example, that if you've worked for your employer for 22 years you'll only get redundancy pay for 20 of those years.

The maximum weekly amount used to calculate redundancy pay is £544 – even if your wage is more per week.

The maximum statutory redundancy pay you can get in total is £16,320.

When you'll get paid

Your employer should tell you when you'll get your redundancy pay – this should be on or before your final pay date.

You and your employer can agree to a different date, which should be put in writing.

They should also tell you how you'll get paid, for example in your monthly pay or in separate payments.

If your employer does not pay you

If you do not get your redundancy pay you should:

1. Write to your employer as soon as you can. The date you should get your redundancy pay should be no later than your final pay date, unless you and your employer agree another date in writing.

2. Tell them what you're entitled to and include any evidence to back it up. For example, you could include a letter that states your first day at work or an email confirming a recent pay increase.

You have to claim for any unpaid redundancy within 6 months of your job ending.

If you still do not get paid after writing to your employer, you can contact the Acas helpline. We can talk through your options and explain the risks and benefits of each, but we cannot give you legal advice.

If your employer is insolvent

If your employer is insolvent, you can apply for redundancy pay from the government’s Redundancy Payments Service (RPS).

Find out about your rights if your employer is insolvent on GOV.UK.

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