Fill out the redudancy payment calculator below to find out how much pay an employee is entitled to.
As the name would suggest redundancy pay is provided to an employee when they are made redundant. In the UK employers are entitled to reduce their workforce in certain circumstances. Staff are sometimes eligible for:
Staff are entitled to redundancy pay if they have worked for a company for more than two years. The pay is calculated on the basis of:
The length of service taken in to account of redundancy pay is capped at 20 years. Weekly pay is capped at £475.
Unfortunately not everybody is entitled to redundancy pay. If a member of staff is asked to stay on after a round of redundancies, or they’re offered suitable alternative work and refuse it, they might lose their right to redundancy pay.
When a member of staff is made redundant they should be given sufficient notice. The statutory notice periods are:
Often the contract of employment will specify the exact amount of notice required so it’s worth checking this.