You’re entitled to redundancy pay if you have a contract and have worked continuously for your employer for 2 years before they make you redundant.
How much redundancy pay you get depends on your age and how long you’ve worked for your employer.
You may get more than the ‘statutory’ amount (the minimum the law says you should get) if it’s included in your contract.
How redundancy pay is worked out
Redundancy pay is based on your earnings before tax (gross pay), your age and the years you’ve worked for your employer.
Your employer must give you:
- half a week’s pay for each full year of work before your 22nd birthday
- 1 week’s pay for each full year of work from your 22nd birthday (up to 41)
- 1.5 weeks’ pay for each full year of work from your 41st birthday onwards
Your employer must tell you in writing how your redundancy pay has been worked out.
Calculate your redundancy pay
How you'll get paid
- when you’ll get your redundancy pay – usually on your last day or on a date soon after that you’ve both agreed in writing
- how you’ll get paid, for example in your monthly pay or separate payments
Up to £30,000 of redundancy pay is tax free.
Limits on redundancy pay
There are limits to how much redundancy pay you can get. You can only get it for up to 20 years of work. This means, for example, that if you’ve worked for your employer for 22 years, you’ll only get redundancy pay for 20 of those years.
The maximum weekly amount used to calculate redundancy pay is £508 – even if your wage is more per week. The maximum statutory redundancy pay you can get in total is £15,240.
If your employer doesn’t pay you
If you don’t get your redundancy pay you need to:
- Write to your employer as soon as you think you should have been paid – this could be after your last day of work, once you've had your last wage payment or the date your employer agreed to pay you.
- Tell them what you’re entitled to and include any evidence to back it up, for example a letter confirming your first day at work for them or email confirming a recent pay increase.
Contact Acas if you still don’t get paid after writing to your employer. They can find out if your employer will agree to early conciliation – a way to resolve disputes without going to an employment tribunal.
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