How much redundancy pay you get You have the right to redundancy pay if you're an employee and have worked for your employer for more than 2 years. Working out redundancy pay How much redundancy pay you get depends on: your age how long you've worked for your employer You might get more than the minimum amount the law says you should get 'statutory' , if it's in your contract. If you're aged 17 to 21 Your employer must give you half a week's pay for each full year you've worked.
If you're aged 22 to 40 Your employer must give you: 1 week's pay for each full year you worked from age 22 half a week's pay for each full year you worked before that If you're aged 41 or over Your employer must give you: 1. Limits on redundancy pay There are limits to how much redundancy pay you can get.
When you'll get paid Your employer should tell you when you'll get your redundancy pay — this should be on or before your final pay date. You and your employer can agree to a different date, which should be put in writing. If your employer does not pay you If you do not get your redundancy pay you should: 1. You have to claim for any unpaid redundancy within 6 months of your job ending. Last reviewed. Print Download. Print close X. Whatever your circumstances or plans, move forward with MoneyHelper.
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Employees can be required to work their notice period, or they could be given payment in lieu of notice. Find out how to keep employee data right at your fingertips! It is worth noting that if an employee is dismissed with notice, that notice period may take their number of years of service into a new year, and they must be compensated for this year. A severance package or a layoff package is a financial offer made by an employer when letting an employee go which can be provided as an alternative to a redundancy package, or in other circumstances.
However, severance pay packages particularly in the case of voluntary redundancy are often larger sums than statutory redundancy pay. According to gov. Employees have certain rights when they are under notice of redundancy, including the right to reasonable time off to look for a new job or arrange training and the right not to be unfairly selected for redundancy, as well as entitlement to redundancy pay under certain circumstances.
Employers also have to take steps to avoid compulsory redundancies and offer alternative work with a four-week trial period.
You are also required to give your employees a statement showing how their redundancy payment was calculated.
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