I am being made redundant at work. What will my redundancy payment be?

By: Clark_Taylor | Posted: 27th April 2012


You are entitled to statutory redundancy pay if you have two year continuous service. The amount will be determined on the basis of:

Your employer must pay you:

What is the limit of statutory redundancy pay?

The statutory maximum weekly wage is £430. The maximum statutory redundancy pay payable is £12,900.

Is a tax levied on statutory redundancy pay?

No, there is no tax on statutory redundancy pay because it's not more than £30,000. Any payment other than statutory redundancy pay is subject to tax and National Insurance.

When to file a claim to an employment tribunal?

You have six months from the date of employment ended to make a claim to an employment tribunal if you are disagree or your employer fail to pay you statutory redundancy pay. Employment tribunal can extend the period of six month for making the claim. You can apply to the Department for Business, Innovation & Skills for a direct payment from the NI Fund if your employer fails to pay you.

What are my other redundancy rights?

You have following rights other than the statutory redundancy pay. You have a right to:

On what grounds can an employer make my job redundant?

Section 139 (1) of the Employment Rights Act 1996 states that employer can make redundancies in the following situation. When

Is it necessary to issue warning letter before making me redundant?

Yes, it is necessary that employer must give you warning letter about making the redundancy. The letter must provide you the detail and reason for making the redundancy. It is also called first step of consultation. It is the duty of the employer to inform and consult employee if the information and consultation (I&C) agreement is in place.


Net Lawman provides:

Redundancy confirmation: warning letter to employee