STATUTORY REDUNDANCY PAYMENT

Statutory Redundancy

Statutory redundancy refers to the legal entitlement of employees who are dismissed from their jobs because their position is no longer needed. This situation arises when an employer reduces their workforce for reasons such as restructuring, downsizing, or economic challenges.

Statutory redundancy is a legal protection for employees facing job loss due to their roles being made redundant. It ensures they receive financial compensation and support during this challenging time. If you have more specific questions about redundancy or need assistance with a particular situation, feel free to ask!

If all else fails, you can make a claim to an employment tribunal. This is a legal process where you can seek to recover your redundancy pay. You usually need to submit your claim within three months of the redundancy date or the date you were refused redundancy pay.

statutory redundancy pay

A redundancy payment compensates employees who lose their jobs due to redundancy, where their role is no longer needed. Statutory redundancy pay is a payment made to employees who are dismissed due to redundancy, provided they meet certain conditions. In the UK, the amount of statutory redundancy pay an employee is entitled to depends on their age, years of service, and weekly pay (up to a capped limit).

While it can be frustrating if your employer refuses to pay redundancy, understanding your rights and following the appropriate procedures can help you address the situation effectively. In the event that you require additional assistance or particular information that is suited to your circumstances, you can use the template that we have provided below to file a claim.

statutory redundancy pay calculator

The statutory redundancy pay is based on three factors:

Age: The employee’s age determines the multiplier applied to each year of service.

• 1.5 weeks' pay for employee who is aged 41 or older.

• 1 week’s pay for employee is aged between 22 - 40.

• 0.5 week’s pay for employee is aged 21 or younger.

Years of Service: The number of full years the employee has worked for the employer (capped at 20 years).

Weekly Pay: Is capped at £643 per week as of April 2023.

Employees can use a statutory redundancy pay calculator available on the UK Government website.