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Redundancy Pay Set To Rise

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Statutory pay will increase this autumn.  From 1st October, the weekly limit for statutory redundancy pay will increase from £350 to £380 and the maximum statutory redundancy payment will rise from £10,500 to £11,400. 

This increase will also affect certain other payments which are calculated on the basis of a week's pay, including employment tribunal awards (e.g., the basic award for ) and payments made out of the National Insurance Fund where an employer is .

Since the increase will come into force beginning 1st October, an employee whose redundancy dismissal takes effect on or after this date will be entitled to this higher amount.

Entitlement to Redundancy Pay

To work out your redundancy pay entitlement, you should first look at your contract of employment.  If it doesn't mention a payment or you don't have a contract, you may still be legally entitled to redundancy pay.

You must have worked for at least two years with your employer whilst you were over the age of 18 to qualify for redundancy pay. 

This rule does not apply, however, if you think that your employer has discriminated against you in the way that you were selected for redundancy (for example if you were selected on the basis of your race, sex or because of any disability you might have).

Amount of Redundancy Pay

The amount of redundancy pay you receive depends on how long you have been employed, your age, and your weekly pay before tax.

  • For each year of continuous employment between the ages of 18 and 21 you will get half a week's pay

  • For each year of continuous employment between the ages of 22 and 40 you will get one week's pay

  • For each year of continuous employment between the ages of 41 and 65 you will receive one and a half weeks' pay

However, there is an upper limit on the amount of weekly pay you can receive (see first paragraph above).  In addition, any period of continuous employment over 20 years will be disregarded and for every month you are over the age of 64 you will lose 1/12 of your entitlement.

Additional Information & Advice

You can obtain further information about redundancy on .

Depending on the circumstances of your case, however, it may be better to speak with a solicitor who specialises in law.  You can be in your area for free via solicitor matching services, which can also help you to understand the best course of action for your situation and whether you are ready to hire a solicitor.

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