What am I entitled to when made redundant?
If you’re told you are going to be made redundant it is likely that you’ll feel unsettled and uncertain of the future. That is why we have put together this legal guide on what you are entitled to receive if you’re going to be made redundant.
01 December 2015
When you’re made redundant you’re entitled to several things such as notice, a statutory redundancy payment and possibly - if your dismissal was done unfairly - compensation.
If it is written into your contract of employment, you could have a longer-than-statutory notice period which has to be given to you before your employment terminates, so check your contract. If your contract doesn’t specify a notice period then you are entitled to a statutory notice period.
The length of your statutory notice period depends on how long you have been employed in the job.
- If you have worked there for one to 24 months you have the legal right to at least one week’s notice.
- If you have worked there for two to 12 years you have the right to one week’s notice for every year of your employment.
- If you have worked for 12 years or more you have the right to a statutory notice period of 12 weeks.
Similar to your redundancy notice period, you could have enhanced arrangements for your redundancy pay written into your contract of employment. Even if there is no redundancy scheme written into the contract, your employer may have made redundancy payments in the past. You will need to find out what has happened before, so you can argue you are entitled to the same as a minimum.
If your employment contract doesn’t specify enhanced redundancy pay arrangements, and there is no clear past practice, then you are still entitled to statutory redundancy pay, providing you’ve worked in the job for two or more years.
If your employer fails to pay you correctly when you have been made redundant you might want to consider claiming redundancy compensation. You can take legal action if there is a shortfall in redundancy pay.
How much is statutory redundancy pay?
Statutory redundancy pay depends on your age, your wage and how long you have worked for your employer.
You must also have been an employee for at least two years. One week’s statutory redundancy pay is capped at £571. How many weeks’ pay you are entitled to depends on your age and your length of service.
- You should receive 0.5 week's pay for each full year you have worked for your employer whilst aged under 22.
- You should receive one week's pay for each full year you have worked for your employer whilst aged between 22 and 40.
- You should receive 1.5 week's pay for each full year you have worked for your employer whilst aged 41 or older.
Slater and Gordon’s employment law solicitors have years of experience in advising individuals on the best way to handle possible redundancy situations. We can support you through what can be a scary period filled with uncertainty in order to achieve the best possible outcome in your circumstances.