How does redundancy work in the uk

Find out more about your redundancy rights under TUPE. If you like, you can tell us more about what was useful on this page. Please do not include any personal details, for example email address or phone number. If you have a question about your individual circumstances, call our helpline on We cannot respond to questions sent through this form. Breadcrumbs Home Advice Contracts, hours and pay Redundancy.

When redundancy can happen Volunteering for redundancy How your employer must consult you How you're selected When you're given redundancy notice How much redundancy pay you get Redundancy pay if you've been on furlough Taking another job with your employer If you feel the redundancy was unfair Finding a job with a new employer. Savings All Savings guidance.

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Tool Find a retirement adviser. Calculator Redundancy pay calculator. Home Work Losing your job. Work Losing your job. Redundancy pay. Statutory redundancy pay and contractual redundancy pay How much redundancy pay will you get? Are you entitled to redundancy pay?

Redundancy Pay calculator. Back to top. Statutory redundancy pay and contractual redundancy pay. Statutory redundancy pay is the legal minimum. How much redundancy pay will you get? Furloughed workers. Only complete years of service count, and service has to be continuous. Your age. Under Over Table scroll. Calculating redundancy pay — An example. Pay in lieu of notice and holiday pay.

Pay in lieu of notice. Need more help? Get free debt advice now. Holiday pay. So, find out if you have any holiday owing. Find out more in our guide Do you have to pay tax on your redundancy pay? Redundancy pay can be claimed from your employer if you have been temporarily laid off for more than four weeks in a row, or six weeks in a week period.

You must make your claim in writing to your employer who may refuse to pay if they believe normal working is likely to resume within four weeks.

As well as a redundancy payment, your employer should give you proper notice of termination of employment or pay in lieu of notice. Details of the notice period will be in your contract. Your employer may offer a more generous package than the statutory minimum as part of your employment benefits. The redundancy pay calculator can tell you how much statutory redundancy pay you might be entitled to. The total amount you should be paid will be based on:. The maximum number of years that can be taken into account is 20 years.

You can't be given statutory redundancy pay for more than 20 years' employment. This should also include regular overtime and any bonuses or commission.

Your employer must tell you in writing how your redundancy pay has been worked out. You may get more than the minimum amount the law says you should get 'statutory' , if it's in your contract.

Normally works 30 hours per week and spent five weeks furloughed. Returned to work for three weeks and began working 40 hours per week. The number of weeks' redundancy pay you should receive is calculated up until a set 'relevant date'. It's important to know when this date is so you can work out how many years service you have.

In most cases, this is the date when your employment ends the last day of your notice period. In some situations this will be different:. There are limits to how much redundancy pay you can get. It's not the same as getting the sack. Who can be selected? You must be chosen fairly. Reasons not considered "fair" include:. Your age, race, gender, sexual orientation or religious belief You are pregnant You have been a whistle-blower You are a member of a trade union You have asked for holiday or maternity leave.

But employers don't have to select volunteers. Could you be made redundant while on furlough? But the same rules of fairness applied. Government guidance: Furlough and redundancy What is changing after furlough? How many people could lose their jobs?

Can your employer make you redundant on the spot? At least one week's notice if you have been employed between one month and two years One week's notice for each year if employed between two and 12 years 12 weeks' notice if employed for 12 years or more.

What redundancy pay will you get? Half a week's pay for each full year worked when you're under 22 A week's pay for each full year worked when you're between 22 and 41 One and a half week's pay for each full year worked when you're 41 or older.