Redundancy Pay


Employees you make redundant may be entitled to redundancy pay, this is referred to as a statutory redundancy payment.


To be eligible the employee must meet the below criteria


  • be an employee working under a contract of employment

  • have at least 2 years’ continuous service

  • have been dismissed, laid off or put on short-time working - those who opted for early retirement don’t qualify

How to calculate Statutory Redundancy


Employees are entitled to

  • 1.5 weeks’ pay for each year of employment after their 41st birthday

  • a week’s pay for each year of employment after their 22nd birthday

  • half a week’s pay for each year of employment up to their 22nd birthday

The employees Length of service is capped at 20 years and weekly pay is capped at £508.

The maximum amount of statutory redundancy pay an employee can receive is £15,240.


Employers can give their staff extra redundancy pay if they want to, or pay redundancy to employees who have a qualifying period of less than 2 years.

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