Redundancy Pay

If you have been employed continuously by your employer for 2 years or more you are entitled to a lump sum redundancy payment from your redundancy. If you were on fixed-term contract for two or more years and this isn’t renewed after expiry because of redundancy, you also have the right to a redundancy payment.

Details of how your redundancy payment is calculated may be contained in your employment contract or employee handbook, but if this is less than the statutory amount, the statutory amount applies.


Statutory redundancy pay

The payment isn’t taxable and the amount that you will receive is based upon several factors including:

• Age
• Length of continuous service with the employer
• Weekly pay up to a maximum (maximum at 2011 is £400)


You will receive (for each complete year of continuous service):

• Under the age of 22 - half a week's pay
• Age 22 to 40 - a full week’s pay
• Over the age of 41 - a week and a half’s pay


Calculate your redundancy pay using the online calculator