Redundancy Pay

Article Title : Redundancy Pay

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This must be paid to those who are made redundant and have two years’ service or more on the date the redundancy takes effect. Statutory redundancy payments are calculated taking into account the following:

  • the employee’s age;
  • the employee’s amount of continuous service, subject to the minimum of two years and a maximum of 20 years;
  • the employee’s weekly gross pay - up to the current limit of £489.

Payment is calculated using the following multiples:

  • 0.5 week’s pay for each full year of service where age during year less than 22
  • 1.0 week’s pay for each full year of service where age during year is 22 or above, but less than 41
  • 1.5 weeks’ pay for each full year of service where age during year is 41+

The amounts above may be included in any enhanced payments made provided that they exceed the minimum amounts set out above.