To qualify for a statutory redundancy payment (‘SRP’) you must be an employee with at least two years’ service at the date that your employment is terminated. The amount of redundancy pay you receive will depend on your age, how much you earn and how long you have worked for your employer.
Redunancy Pay Calculator
You can calculate your SRP entitlement here.
For Voluntary Redundancy Pay Claluclator click here.
Some employers will pay redundancy pay even if you do not have two years’ service at the date of your dismissal, or may pay ‘enhanced redundancy pay’. You should check your contract of employment / employee handbook to find out whether you are entitled to enhanced redundancy pay. Even if your contract does not refer to an enhanced redundancy pay entitlement, you may be able to claim one if your employer has implemented a policy which is not contractual.
Redundancy payments are tax free up to £30,000.
If you are being made redundant your employer may offer you a compromise agreement (find out more about compromise agreements here). If they do you will need to obtain independent legal advice on the terms of the agreement in order for it to be valid.
* Compromise agreements…